Development plan of a trading robot forex can be performed as follows.

1. The purpose of creation of trade robot forex is a sustainable getting of profit from speculative trading in financial markets.

2. The task – is to develop sustainable and profitable strategy for the speculative market.

3. The item – is a chaotic process of pricing in financial markets.

4. The method of solving the problem – is creating a stable trading system that allows to profit from the chaos of prices in financial markets.

5. Conditions:

- The level of stop loss must be defined before the entrance to the position;

- The levels of stop-loss and take profit) should be easily identified and carry a simple semantic meaning;

- To determine the level of stop-loss, any subjective factors should not influenced, such as account size, impossibility of physical monitoring the behavior of the market during the time of its work, mood, health, psychological pressure and stress, opinion of other people, etc.;

- Featured trade system should not be subject to adjustment in the process of forex trading robot and can be reviewed and improved just outside the stock exchange session, the rejection of the trading system during actual operations in the financial market is not allowed;

- Before the practical use of robot, the trading system must be repeatedly tested in virtual mode.

Algorithm development in the forex trading robot.

Trading system – is the foundation underlying any trade robot forex. Any trading system is nothing more than a decision-making system based on previous information. Decision-making system – this is the algorithm. Previous information or history of the market is used to do back testing of correctness of source mathematical models of the market.

In recent years, it has become widespread so-called optimization models of financial markets. Experience of the use of optimization models of the market shows that this is a dead end road in building trading systems.

Let us give another argument explaining the negative side of optimization models of the market and back tasting. Optimization problems – are a product called ill-posed problems. Since the financial market has not stable price movements, it is meaningless to seek patterns.

If the market is regarded as a Brownian motion, the result will be much better than looking stable trends at it. Accurate forecast of the market cannot be done, it is impossible to accurately predict the future – that is the base on which it is necessary to build a trading system. It is inappropriate to model the financial markets, as it is accepted in ill-posed tasks. You need to model the risks on the market. But nobody knows where the market is moving. When using optimization models, concept of risk is replaced by the notion of the management functions. Using functional control, you can build settlements “backdating” in such a way that risks are minimized and profits maximized. There is a conflict between risk and functional management. In life, functional of control is absent, in life the result is determine by the risks. So that the optimization models of the market are far from reality. It is, rather, the arguments about how much you can earn “yesterday”, but not tomorrow.

There are two ways you can earn on Forex market.

You can study the basics of Forex market trading with the help of a good forex book and do the forex trading personally.

Alternatively, you can hire experienced traders to manage the money on your trading account and they will trade for you. Find out more about forex investment.