Of all the problems, one of the largest problems of automated foreign exchange trading are the diverse markets. Many programss fail at this. Others screw up fully because they were built in some scenarios and then the conditions suddenly changes leaving the system at a loss. The traders are customarily left confused of what happened. The answer to that difficulty is naturally implementing different strategies for different market conditions. There are not that many different market types. Trending, ranging and choppy markets are the main categories. Some EAs like Forex Black Panther employ different techniques to address the issue.

It is not that complex in brief. If there’s one strategy for every market type, it’s possible to blend them all into one, even if that implies swithing them manually. Naturally the best EAs are able to automatically identify the market type and turn on the correct methodology.

When trading by hand you always do that. You choose a strategy for the correct market type, or wait for the correct market type to happen. Then perhaps it is of course possible to employ a EA only under certain market conditions if nothing else works.