My friend Jim from Trading Gurus, who keeps tracking the Forex trading robots, once again reports that there are problems with the Forex Megadroid. The Forex Megadroid team announced plans to adjust it trading strategy to accommodate the new FIFO requirements.
In my opinion, this significant change in trading rules is expected to have an impact on all the robots. Their developers will have to work long and hard and produce new versions of their trading algorithms. Otherwise, the brokers won’t be able to approve these robots or they will stop functioning themselves. More alarming is the fact that some customers may not be aware of this at all and will not disable their robots. This might result in massive losses.
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Some brokers, however, announced that robot trading on their platforms will continue functioning as usual. IBFX even has an ad that promotes exactly that.
I’m completely opposed to robot trading methods; at least until the right legal framework is constructed in order to review and eventually approve each submitted robot.
It is also my opinion that the NFA should have started regulating this massive industry. Many successful marketers and less successful developers are racking in huge profits on the backs of the unsuspecting traders instead of attending to such issues as FIFO or Pricing. Much more money is spent and lost in robot trading than the double commissions some traders might have paid or money lost in price adjustments