So what exactly is a forex robot ? A forex robot, also known as an expert advisor or EA, is software that either fully or partly automates trading on the currency market. The type of software depends on the trading application that is used. The most popular platform to use with forex robots is the Metatrader 4 platform from Metaquotes. If you have basic coding knowledge it is actually very simple to write your own trading robot. The key of course is understanding how the forex market works and how the platform integrates with the market.
How do I get my own forex robot ?
Firs of all you need to come up with a trading strategy i.e. A set of rules that determine when you will buy and when you will sell. If you have a strategy it can be automated through coding thus producing a forex robot. You may think that this is only true for people who can code, luckily this is not the case and that is because there are hundreds of great coders that specialize in coding robots and their fees are often very reasonable. If you would like to go this route or just find out more I would recommend going to https://www.xpworx.com this is a company with vast experience and very reasonable pricing.
Are forex robots risky ?
You may have heard people saying forex robots are risky, the fact is that it depends on the robot. 94% of all hedge fund trading is done through the use of robots / EAs. If they were not effective why would the “big boys”use them? The second point is that any trading strategy that can be manually traded can be automated and this means that if there are successful traders out there, there has to be successful robots. Having said that, if you do not understand the way a robot works you should never trade it on a live account. Take your time to test the robot and find out how the risk management system in the expert advisor works. The risk management system determines how much of your capital is at risk for every single trade. So to answer the question “Are forex robots risky? ” – They can be risky if you use the wrong ones and do not understand the settings.
Are there any commercial forex robots that work ?
The vast majority of commercial forex robots that cost between $49 – $249 are absolute rubbish. There are a few exceptions like our own Forex Scalping Robot, but it is difficult to determine which are good and which not as they all look pretty much the same at face value. Here are a few pointers when looking at buying a forex robot :
- Make sure there is a free trial – If it works why would there be no free trial ?
- Test it on both a demo and live account and compare the results.
- Your broker is key, do some research and choose the correct metatrader 4 broker.
- Make sure that there is a warranty ( at least 60 days )
- Do not trust “verified” results, these can always be manipulated.
Forex Robot – Top 5 List
Well remember that we sell our own forex robot and will be totally biased here, our robot is the best regardless of it being us saying so but if you want to test or compare it with the others on the list to make sure we invite you to do so.
- Forex Scalping Robot – www.forexscalpingrobot.com
- Everex FX – www.everexfx.com
- Algotrade Soft – https://www.mql5.com/en/market/product/12893
- Wallstreet Forex – http://wallstreet-forex.com
- Best Scalper – http://www.bestscalper.com
These are all great forex robots and should be in any trader’s toolbox. It is very important to use conservative settings when using different expert advisors on the same account. If you run more than one forex robot on your mt4 account they should be differentiated by identification codes known as magic numbers. This allows the EAs to function independently on the same account without interfering with one another.
The best way to truly test these automated systems is to open a small trading account of between $200 – $500 and then testing all the robots at the same time. The key is to use a small lot size, preferably 0.01 lots per trade. Do your testing for at least 2 months to determine which of these strategies combined work the best. You may find that one forex robot out trades all the others by a large margin, you can keep that robot and use it exclusively for all trades.
The ideal scenario however is to find different forex robots which compliment each other. This allows you to spread the risk over different strategies which should in theory give you a smoother equity curve with lower draw down. The absolute largest factor is patience, have patience when testing a forex robot as it may seem really good over 5 trades but is terrible over the long run and conversely the expert advisor may seem terrible over 5 trades but is fantastic in the long run. Be patient while researching and testing and you are bound to find the best forex robot.