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Forex AutoPilot - UpdateThis Forex AutoPilot update is to help keep you informed about my testing and usage of this trading robot. If you have visited the Automatic Trading article, you will know that I have purchased the popular Forex AutoPilot trading robot. The following is my current findings... Internal FunctionsAll robots use internal functions to determine which trades to take and some, including AutoPilot, also use hidden functions to manage stop-loss too. This particular robot seems to use a solid set of indicators, as winning trades do outnumber losing trades, and the profit target is usually hit quickly.However, this robot does not use a hard stop-loss order which makes it vulnerable to downside risk. I think it is important to have a fixed limit you are willing to lose on any trade, so this needs to be addressed. Autopilot does give you the ability to set a stop-loss order in it's parameters and even though the supplier says not to set one, I have seen it get into trades that should have been closed, but the software keeps the trade alive. Old School ThoughtsAn "old school" rule in trading says that if the reason you first entered a trade no longer exits, you need to exit the trade unless there is some other compelling reason to stay in.In my opinion, if any trade is more than 100 pips in the hole, the original incentive is likely long gone and it's probably best to take your lumps and move on to the next trade. Forex is very volatile and there will be large price swings, but you have to develop the mentality of cutting losses at a reasonable level. I would suggest you have the Autopilot place an initial stop at 100 pips out of the money, and then manually modify the stop level slightly to put it behind an obvious support or resistance level. Use Stable Pairs OnlyThis robot was designed and optimized to run on the EURUSD 1 minute chart. This means any of it's performance claims are based upon this scenario.Running it on any other currency pair will work, but results may be unpredictable. I strongly suggest using Forex AutoPilot only on currency pairs with the most stable price action. Avoid the temptation to put in on every chart and hope for the best. Certain crosses such as GBPCHF, GBPJPY and certain other "high flyers" will likely lead to heartache. They are too volatile for the internal structure of the robot and will probably have more losing than winning trades. Manage the RiskThe robot has the ability to ratchet-up the lot size if you set it to do so. I recommend you manage the trade size manually by setting the lot size, until you are very familiar with it's performance.You will still have trades that don't perform as you hoped they would. Remember, there is no system that will win 100% of the time. If there was, all the NASA scientists would have retired long ago. Keeping the lot size small helps you keep your emotions in check which means clearer thinking on your part. If you manage your trading properly, eventually you will taste success. The Forex Autopilot trading robot can produce very good results. As with any Forex system, you always need to be aware of the changing landscape and be prepared to take action if necessary. Wishing you trading success,
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