Forex robots are great tools to aid traders with their Forex trading ventures. They are great in automated trading matters, as they can assist with multiple Forex trading elements and technical analysis. The greatest advantage of these robots is that they can trade for 24 hours daily, and traders have easy access to them online.
However, if you are new to Forex trading or you didn’t deal with such robots yet, you may not trust them completely. You might be wondering whether they actually work and whether they can be useful in your trading strategy.
If you would like to learn more about these robots and find some quality ones for your Forex strategy, this post is packed with everything you need.
A Forex robot represents an automated software program with the ability to create trading signals in various Forex markets.
They were created to get rid of trading’s psychological aspect. Many times, they integrate with certain exchange platforms or Forex brokers online. People also call such a robot a Forex EA (Forex expert advisor) or algorithmic trading system.
It is important to keep in mind that these are not physical robots that trade. They are specialized computer programs, designed to perform various trading tasks.
Forex robots can either be created or purchased, but the latter is a much easier way of getting into the automated trading system. Also, beginners will have a better time with a purchased robot as it can help them learn how the process works and gain some experience. Developing your own robot requires learning MetaQuotes Language (MQL) among other things.
The market is full of Forex robots, with some of them being better than others. While you can find numerous high-quality robots, there are also scams. So, before settling for one, you should make sure you buy from a trustworthy source.
You can program a Forex expert advisor to work in multiple ways. EAs generate signals and are able to do trades without requiring any manual sign-off. One’s EA can be programmed to work by searching for the necessary breakouts and trends or by setting it to use a technical indicator selection.
Certain EAs can take control of your Forex account, looking at the account balance you currently have and analyzing how much of it you can risk. Ideally, only 1-2% of the balance in your account should be put at risk. EAs can be great if you want to manage risk.
Forex expert advisors can also check the trades and figure out whether there should be a take-profit, stop-loss, or a trailing stop. The market conditions at the moment will also be taken into consideration by the EAs after they get the information they need. When it comes to opening a certain position, you will also be notified.
Forex EAs can be extremely useful for any trader. Very commonly, traders tend to make unproductive trades when they feel too confident or when their emotions take over. EAs can prevent this from happening because they will tell any user when it’s time to open or close a trade based on the changes in the market.
Expert advisors will make sure that you only trade profit while being able to rest. They will use every single technical element necessary for making the best out of all trades. For instance, there are EAs that use chart-related indicators to make sure everything is done right.
EAs also have the power to send trade signals, as well as check the balance of an account before deciding the right risk percentage. On top of that, a Forex EA can also help you choose the right trading strategy for each particular trade, especially if you have issues switching between multiple styles.
Before you choose a Forex robot, you should make sure it is the right one for you. As mentioned, not all robots you stumble upon will be reliable. There are also scams out there, and the last thing you want is to fall victim to such a scam.
The Forex robots are chosen based on the following criteria:
If you have a hard time finding quality expert advisors online, you should check out the following ones. Perhaps they could be the ones accompanying you in your trading adventures from now on.
FXStabilizer PRO is a great tool. It trades to the profitable logic in the long term. What’s even better is that it has a great stability history. In fact, its trading statistics have been impressive since 2016. With a minimal deposit of $1400, this EA can make your Forex trading dreams come true.
FXRapidEA QUATRO has a minimum deposit of only $460 and up to 4 currency pairs. It has an amazing system that increases the likelihood of making a profit considerably. It can determine the trend direction and then open a trade based on this. When the trend direction changes, the robot will close the open trades, and open new ones based on the new trade so that all previous losses are covered.
What makes Forex Truck stand out from the other similar tools is the “two blocks” trading algorithm that it uses for trading. With it, the EA can earn high profits. Even better, it has very reliable statistics since 2020, all thanks to the trading algorithm.
With a minimum deposit of only $390, FXCipher truly shines among EAs. It uses the trading tools and algorithms that have been implemented into the system, and because of that, it was able to show high profitability since it started trading. The two built-in presets that one can choose from are also responsible for the high results.
FXQuasar’s live statistics are available since 2020, and they show the great results of the trading robot. It uses a unique algorithm when trading, which is useful when it comes to bringing profit constantly while trading. The system has 6 independent sessions, and they all help figure out how the trading will be done. The minimal deposit of the EA is $600.
There are a few things that you should know before you run a Forex expert advisor.
For instance, you should always know how to allocate funds based on the performance of the EA. How much you allocate to it will determine if you will be able to reach your goals or not. Therefore, your trading will not be successful if you do not allocate enough money. Bear in mind that if your EA is a high-performing one, it will need more funds.
Also, if you want your EA to operate all the time, you will need what is known as a virtual private server (VPS). A VPS is an MT4 online version that an external server hosts. It allows the EA to work even if you switch off your computer.
Therefore, you will not have to keep the computer or phone running the MT4 or MT5 platform to have your EA functioning. An instance of your MetaTrader will be hosted on an external server to function, a server that will be on at all times.
If you want to increase profits, you should also trade on a low spread account, because high spread ones decrease profits. With a low spread account, not only will you ensure better profit, but you will also have fewer losing trades, reducing costs.
It is also essential to know about MAE and MFE when you get into trading. Maximum Adverse Excursion (MAE) will allow you to figure out how far your trades will go into negative territory before turning into profit recovery. Meanwhile, Maximum Forward Excursion (MFE) will help you figure out how far your trades can go into profit.
Automated trading is very convenient – therefore, Forex trading has been growing tremendously in 2021 because of it.
Because they are more accurate and convenient, Forex robots have been chosen a lot by traders. The popularity of Forex robots has increased in 2021, so people will likely keep using them in 2022.
Forex EAs are appreciated for their high predictability level, but also for the fact that they can automatically carry trades. Not to mention that they can also work after you turn off your device if you use a VPS. So, Forex robots will surely work for traders in 2022 and will stay with us for a very long time from now on.
Forex EAs have their pros and cons and knowing them is important before you start trading with them. Let’s start with the advantages of these robots:
Just like anything else, Forex robots also come with disadvantages, such as:
Not all Forex robot manufacturers are honest – therefore, not all EAs will be reliable. Some products are scams. Here is how you can make sure you choose a reliable product:
Many Forex expert advisors are tested with a real account. Usually, to make sure that the robot works as intended, it is tested with real accounts on multiple sites. This will show how the robot performs and whether it needs upgrades.
One can also choose between live / demo account to test an EA.
Forex robots may be expensive in some cases, but it all depends on the particular tool you choose. All EAs are priced differently. Some EAs are free, while others are for sale, and you may have to pay between $100 and $1,000 for them.
A free Forex EA can be good when you are just getting started, as it allows you to test the tool. Once you know how to set up and run a robot, you can switch to a paid one.
If you found an EA you want to use, here is how you can install it:
You can also use a Forex robot on mobile devices. Since MetaTrader applications can be downloaded on Android and iOS devices, you can use an EA from your phone too, allowing you to trade on the go.
You must select a broker that allows you to use the type of trades offered by your EA. You should also find a broker that supports MT4 and MT5.
Furthermore, pay attention to the trading cost and make sure you find a broker with convenient fees. Ideally, the broker should have a great execution speed too.
There are many EAs to choose from, but you should make sure to pick the right Forex robot for your trading style and goals. Choose one from the list in this post, or use the criteria offered to find the perfect one. In the end, all that matters is to find the best robot for your trading adventures.