Forex robots invest in forex trading aspects based on iterative and technical analysis. This aspect lends itself well to automation. Profitable long-term FX trading is more than that, but forex robots (bots) or automated services can have advantages.

 

 

However, regardless of their complexity and features, no forex robot offers a one-stop solution for instant profitable trades.

What are forex robots?

Forex robots are special programs/software that generate trading signals through mathematical algorithms using technical indicators.

Some FX robots only pass these signals to the trader. Other people can act on them too. It is this latter variant that deserves the name “robot”.

All the hard trading tasks can be done if you have the software. All you really need to do is think about your life and scoop up profits when you feel like it.

It is not an automated way of trading. There are quite a few people in such systems who prefer to think that way about Fx robots. However, on this page we want to discuss a serious and viable car trading system. These systems require constant coordination and human supervision.

The real question is: how does this FX robot work and how do you make your decisions?

How do forex robots work?

Expert Advisors (EA)

MetaQuotes’ MT4 (MetaTrader 4) is the “home” platform for forex robots called EA (Expert Advisors).

EA uses an endless variety of technical indicators and custom scripts to derive and respond to trading signals. Anyone can directly code an EA through the trading platform. The programming language used for this is MQL 4 (MetaQuotes Language v. 4).

There is a vibrant marketplace where traders and programmers buy and sell the best EAs.

The best forex robots can scan charts in disbelief. They find trading opportunities through the technical indicators they use.

When such an opportunity is identified, the robot can recommend it to the trader. It can also operate by opening positions according to a set of pre-programmed parameters.

Limits

The limitations of robots/EAs in both operational phases are clearly evident.

Experience shows that automated trading really only works within a narrow range. Also, the presence of a well-defined trend is a big plus. Car trading profits are usually only a few pips. If the conditions are right, a forex scalping robot can be very successful.

However, due to this shortcoming, large price movements can wipe out all profits in a heartbeat.

Uneven markets and negative trends are the main enemies of profitable auto trading.

So robot users need to find trends in the right direction and intensity before handing over the reins to their algorithmic “brains.”

Does automation really work?

Creating a working forex robot has never been easier. Programmers spend a lot of time and effort building these software. It is clear that this is not a simple exercise as there are a number of variables that need to be juggled.

With this in mind, the idea of a free-trading robot that works quickly becomes impossible.

That said, the actual efficiency of a working forex robot is quite impressive. Moreover, authorities consider such automated traders to be unreliable novelties and, at worst, fraudulent.

This is probably why you won’t find serious FX publications promoting forex robots.

 

 

Trading experience

The forex robot industry itself is not conducive to trust. Players of various trading bots do their best to discredit their competitors. It’s a bit of a wild west, and few traders buy the winning forex robots.

So, the best way to find a forex robot that works is to hide through feedback provided by real users. Make sure you are dealing with genuine feedback. Forex robot builders have uncanny knack for user review.

Genuine forex robots always require a large amount of user input. What that means is that the ideal user isn’t a clueless newbie. You must fully understand the market conditions in which your robot operates. The bot has to take the repetitive workload off the user’s shoulders. It can’t be a “smarter” party.

If that’s what you’re expecting, you’ll be disappointed.

Custom Robot Strategy – From You

Then you should be able to set up your FX robot to run your vision correctly. Once you achieve that, you will need to continually adjust your settings, keeping an eye on the market/defaults and the robots one after another. It is also often necessary to quit completely and devise a radically different approach.

A forex robot that “forgot to light” stopped trading is always a scam. We do not sell forex robots that can make a lot of money on autopilot.

That sounds too good to be true.

Bottom line: Don’t expect much from the robot, but know that it has a lot to do while trading cars too.
Avoid free forex robots. The same goes for any deal that is too good to be true.

Pros and cons

The advantages of forex robots are obvious. If mechanically repetitive trading strategies really work, you can trade robots around the clock.

FX robots do the mechanical work in the forex trading equation. But they can’t help you anymore.

They cannot come up with their own strategy and therefore cannot adapt to changing market conditions.

Successful forex trading requires skill, intuition, an analytical approach, and knowledge. Forex robots do not have such properties.

All auto traders, even the world’s best forex robots, function based on technical analysis. By definition, technical analysis attempts to use historical data to draw conclusions about future price movements.

Historical forex data

All brokers will tell you quickly in a quick text. Historical data is not indicative of future performance.

As mentioned, the forex robot market is a true Wild West. Actors don’t make sales by pulling punches and tricks.

One trick legally favored by forex robot sellers is the process of selecting the best backtest from a pool of hundreds or thousands. We then present this backtest with the results that “system” buyers can expect.

So the FX robot that captured your imagination has been back-tested… which probably means nothing.

Forex robot scams

The forex robot industry is fertile ground for scams of all kinds. It has always been that way and will probably continue down the same path.

The semi-legal nature of the idea of an automated trader leaves plenty of room for such shady shenanigans.

How can I tell if a forex robot is a scam?

  • – Provided free of charge by the vendor. Nobody puts the work and time (and possibly money) into building a robot and gives it away for free.
  • – Guaranteed profit. No one can give you any guarantees when it comes to automated trading.
  • – The robot is so advanced that it can strategize itself. This is simply impossible.
  • – Obviously, the robot works based on some advanced technology. This was a scammer who loved to withdraw in an era of binary options auto trading scams.
    There are always gullible people out there, and scammers can fool at least some of them.
  • – The price of the robot is reasonable (eg in the $20-$100 range). This makes no sense. No one is selling a competent forex robot.
  • – The seller claims the robot is an unforgettable long-term solution. Most forex robots for work are small, as automated trading tends to perform very poorly in the long run.

Conclusion

Forex robots use technical analysis. As a result, what they can accomplish is severely limited.

You need to be a skilled trader as well as a skilled programmer to use the robot to your advantage.

That said, there are legit automated trading solutions out there. However, a functioning forex robot always requires constant human involvement.

A quick look at some forex robot forums will tell you which auto traders are actually legit. You can also see community members discussing various settings for FX robots.

These settings summarize the auto trading problem. The source of your winning strategy is the merchant. Forex robots can only ease the mechanical workload. There isn’t much they can add to profitability beyond that…