As you kick-start your forex trading career and gain experience, it is only natural for you to become curious about trading on auto-pilot. One way to trade on auto-pilot is to use the best forex robot, after all, it makes sense to spend less time in front of your computer but still makes money like every other experienced trader.
Although it can be intimidating to dive into the world of forex robots, with this article and the table of the best forex robots we included, you are a few steps away from becoming a professional. Also, in this article, we provided information on the advantages and disadvantages of using forex robots, what to look out for when looking to choose a forex robot, and wrap up with how to include forex robots to enhance your trading skills.
Forex Robots: What Are They?
Forex robots are computer algorithms or programs that scan the forex market on a 24/7 basis looking for profitable trades to suggest to traders. Forex robots are pre-set with specific trading strategies or parameters, and they can either work automatically trading on your behalf or suggesting profitable trades for you to trade manually.
Most of the forex robots on the market make use of technical indicators to scan the market for trading opportunities. No two robots are the same; that is, forex robots all have different trading strategies depending on the parameters the programmer embedded in the computer programs. They all claim to use the best forex indicator or other premium tools.They are more effective than human eyes when it comes to watching market movements and trends. Plus, they are devoid of human emotions in their trading decision.
Features of Forex Robots
There are different computer programs developed by programs to scan the financial market, how do you know a real forex robot? In this section, we will walk you through the features of forex robots so that you quickly identify one when you see it.
#1. Automatic Trading: Automatic trading is the greatest feature of forex robot – this means you can sleep with your two eyes close at night while the robot continues scanning the market for profitable trades. Based on your instructions, the robot can trade the market on your behalf. However, ensure you carry out periodic supervision because the robot may run into glitches. That is why at Forex Expert Advisors Reviews, we backtest all of the forex robots listed on our website effectiveness and efficiency.
#2. Analyzes The Currency Scenario: This another important feature of a forex robot. A lot of traders cannot analyze market trends, currency movements, and spread discrepancies within a short time to make a trade decision. But to earn consistent profits, you need this skill coupled with technical knowledge of the market. The best forex robot can help you with all of these while you sit back and observe the results.
#3. Cold and Logical Approach: Making a logical decision to influence a trade can be a difficult thing to do, considering the emotional and psychological factors associated with humans. But incorporating a forex robot into your trading arsenal, you are sure any decision taken by the robot is accurate.
#4. No Wrong Calculations: You will agree with us that as humans, we are prone to make mistakes with figures and calculations. A forex robot doesn’t make this kind of mistakes or errors. Every decision taken by the robot is more than 80% accurate.
#5. Backtesting: You can run a backtest to determine the effectiveness of a forex robot. If you are using the MT4 trader, backtesting the software is very easy and straightforward.
#6. Consistency: Truth be told; it requires discipline to be consistent on the market, especially if you have lost money in the past. Unfortunately, no trading strategy guarantees 100% success all the time; at some point, you are always going to experience a loss. A forex robot will help you to be consistent so that after a loss you won’t be scared of the next trade.
#7. Trade can be diversified: A forex robot can help you diversify your investment portfolio. You can use different strategies to trade different currency pairs to spread the risk over different instruments. This is only possible when you use the best forex robot, as it is highly multitasking.
How to Make Forex Robots
While there are several forex robots on the market available for forex traders to use, the process of making one is simple and straightforward if you understand computer programming languages.
Generally, there are two ways traders can get a forex robot for their trading needs:
- The first way is to develop a forex robot yourself.
- The second way is to use a forex robot developed by professional developers.
The first method requires that you understand computer programming languages of the trading platform you are using. So, if you are a user of the MT4 trading platform, it’s a no-brainer for you to learn programming languages relating to MT4. There are lots of resources available online that will help you learn how to program forex robots.
If you feel programming a robot is not your thing, then you can opt for the second method. Here on our website, we have excellent forex robots that have been programmed by expert developers for traders to use. You can take a look at them to choose the one that suits your trading needs.
Things to Consider When Choosing Your Forex Robot
Except you are a veteran or you are very familiar with using a forex robot, the chances are that you would make a mistake in your choice of the best forex robot. There are other websites also who have usefull information about the best forex robots. In this section, we have put together a guide to help you choose a forex robot to suit your trading needs.
#1. Low Drawdown Rate: The first thing to look out for when you want to choose a forex robot is low drawdown rate. Measuring the reduction and decline of capital is only possible with the low drawdown rate. Using a forex robot with low drawdown rate ensures that you don’t lose your hard-earned money to market forces.
#2. Testing: Before you choose a forex robot for your trades, ensure the robot is properly tested against real slippage, variable spreads, real tick data, and the result displayed for you to see. At Forex Expert Advisors Reviews, we backtest all of the robots listed on our site against these variables.
#3. Use a demo account: Always try out a new forex robot with a demo account before switching to a live account. Testing with a demo account will enable you to see how the robot works under different trading conditions. Plus, you will become more confident using the tool to trade the forex market.
#4. Accuracy: Lastly, ensure the forex robot you’d be purchasing is accurate under different trading strategies. Regardless of your location, the best forex robot should give you the same results at every point in time.
Downsides of Using Forex Robots
#1. Failure of the system: Although a forex robot is a sophisticated tool, the system is not without a fault. What happens when you lose internet connection? What about failure in the power system? What happens when your trade strategies never get to the server? These and many more faults are some of the system failures you may experience using a forex robot.
#2. Supervision is still required: It makes sense to use a forex robot to trade the FX market on auto-pilot, but some levels of supervision is still required to achieve success. You need to constantly watch out for some issues like computer crashes and system failure as we mentioned above; otherwise, you’d be experiencing duplicate orders, wrong orders, as well as missing orders.
Last Remarks About Best Forex Robots
The best forex robot is a game-changer if you want to enhance your trading skills. Forex robots can analyze market movement, spread discrepancies, and market trends better than humans. Forex robots will also enable you to trade on auto-pilot so that you dedicate your time to other meaningful ventures.
The best way to understand how to use a forex robot is to constantly spend time playing around with it using a demo account. All of the forex robots listed in this article have been tested for effectiveness and efficiency. They guarantee peace of mind and would help you improve your earnings with time.
Lastly, do not use forex robots in isolation. At best, you should combine them with at least 4 or 5 technical indicators. There is a wide range of technical indicators on the market – from support and resistance indicator, MACD indicator, Stochastic Oscillator indicator to breakout indicator, gap indicator, as well as volume indicator. Combining any of these Indicators with your choice forex robot will definitely take your trading career to the next level.