The Signaltrader trading Robot works by the following:-
1. recognising overall direction on the trade on the daily/weekly chart using the 200 period daily simple moving average.
2. Managing both orders and trades to be in the right place at the right time, the robot is able to identify changes of direction in the markets and continuation trades, even in slow and awkward markets by making a comparison of the strength and weakness of all major currencies against each other.
3. When a trade is on, managing the stop loss to protect your trades and riding the take profits as long as possible. Most STRobot trades stop out in profit, even if its only a few pips.
4. The stops are managed using a combination of RSI and calculated risk management backed up by currency strength/weakness.
for more details check out http://www.iwanttobeaforextrader.com