A machine that is designed to perform actions normally performed by human beings is called a robot. The forex market is a huge world wide organization of buying and selling currency pairs as they fluctuate against each other in value. A forex trade robot is designed to perform the actions formerly undertaken by human beings in trading currency pairs.

Some tasks are suitable for robots to do and others are not. For example robots are very useful in making cars. They are proved to be more accurate, speedy and economical and when it comes to lifting sheets of metal and welding them in place. They are also able to play chess and defeat acknowledged chess masters.

Robotics advanced like an army, taking over more and more complex human chores. Recent motor shows exhibit cars driving themselves robotically with the aid of GPS systems. They have been landing and flying aircraft for many years.

It is in the sphere of human interaction that robots can do even more damage than an incompetent human being. The picture of a pretty girl with a microphone who produces only robotic responses to frequently asked questions makes clients with problems feel severely cheated.

However, she is really a software program with a limited number of automated responses in her repertoire. Any questions that do not fit the profile of frequently asked questions are answered with an idiotic, programmed response. This so infuriates clients that they vow never to buy the product or use the service again. They feel cheated.

There is a great deal more to human interaction that mechanical response. Artificial intelligence has not yet been able to replace things like intuition, expression and non verbal cues that accompany verbal communication.

When thinking about automated forex trading one has to take into account the efficacy and the inadequacy of robots. Most successful traders will admit that emotions play a huge role in trading and advise that one needs to stick to a strategy in a disciplined way. Thus far a robot would seem to be the answer. It won’t get greedy and will stick to a strategy exactly. However, it will not react to the news of bombs raining down on New York, or an inexplicable political decision in Australia. It is no more infallible than a human being when it comes to reacting quickly to changing circumstances.

It may be wise to consider a forex trading robot as an indispensable tool. A taxi business cannot do without a taxi but a taxi driver is required to take fares. In a similar way a trader needs a robot but also needs to use it wisely. If he does so he is likely to be ahead of the game in the risky business of forex trading.

Rudolf Boquiren tests leading commercial forex trade robot software on his Forex Robot Examiner website.