What Are Forex Robots and Do They Really Work?
Reading time: 8 minutes
Forex trading is versatile due to the different trading styles, Forex strategies, and Forex systems that can be used. In the Forex market, there are traders of all levels of proficiency, and each type of trader will have different ways of working. One of the features of Forex is the split between the traders who want to manually trade, and those who want to utilise automated trading. This article will focus on automated trading.
What is a FX Robot?
Automated trading requires a lot of research to find the right software that will perform trades correctly. Sitting back and letting an automated device perform the work for you can be a real temptation, and it's here that automated Forex trading robots come into play. An FX robot is a computer program that is based on a set of FX trading signals which help to define whether to purchase or sell a certain currency pair at any particular time.
Trading robots are available 24/7 to Forex traders, and can easily be bought over the internet. It is imperative to confirm that there is absolutely no such thing as the 'holy grail' of trading systems, regardless of the type they belong to. The question many ask is do Forex robots work?, or will choosing one turn out to be just another commercial scam? We've prepared this article order to address this question.
GPS Forex Robot
This the first Forex robots service in our list. This FX robots provider undoubtedly has something to offer to traders. If you already have experience and moderate knowledge of the financial markets, you may benefit from utilising these robots.
If you are trading using the MetaTrader 4 terminal, it would be preferable to use the advanced trade copier. Traders who invest a lot in the FX markets each month often favour this product. There is no monthly subscription at GPS Forex Robot, robot comes with $149 one time payment.
Overall, GPS Forex Robots are user friendly and provide easy access to good customer support - contact details are clear and they answer almost immediately, which technically serves a user well - which is one more reason why they are in the list of top Forex robots providers.
Itic Software, provides FX traders with a wide variety of service. They indicate to their clients when it is an appropriate time to carry out buy-sell actions of main currency pairs on the Forex market, based on analysis
Itic Software robots have multiple trading strategies. The wide service they offer is continuously tested by professional traders, products are not repaints, they always provide the source code and use unique mathematical algorithms only.
How Does a FX Robot Operate?
FX traders want to use robots because they hope to make easy money from the Forex market, without having to devote a lot of personal time to it, or do anything manually. Those who use robots have to find a good currency pair and the perfect time-frame to trade in it to maximise their profits.
Some Forex robots are capable of scanning numerous charts in a way that humans physically can't. In addition, robots are developed with particular parameters needed in making trade decisions. With implanted trading signals, they determine when it is appropriate to trade, or conversely not to trade.
The best Forex robots suggest solutions to find profitable trades even in unstable markets, when the actual trending direction is unclear. Robots will follow the best trend to enlarge profits, and perhaps eliminate the chances of potential losses. Trading against the trend will eventually lead to loss after loss, whilst trading with it increases profit, no matter what method or robot is used to trade.
However, what must be remembered is that the majority of robots trade within a certain range. They make a particular amount of pips inside the tight range, during the slowest time on the Forex market, and they regularly set a few pip targets, and may not even use a stop-loss. They can be classed as successful, as they do tend to make profits in each trade, even if it is only a few.
When an unanticipated and strong range breakout occurs, it wipes out the small profits that they have made. Some robots which are promoted as the best Forex trading robots, can gain a profit in a positive trend, although they may lose money in a choppy FX market, so the discovery of a great trend to follow is an essential task.
Trade With MetaTrader Supreme Edition
FX robots can certainly make an impact on your trading experience, but boosting your trading platform with the ultimate upgrade can push that experience to the limits! MetaTrader Supreme Edition provides additional tools for MetaTrader 4 and MetaTrader 5 that improve and enhance the overall trading experience.
Gain access to FREE real-time market data, the latest technical analysis from Trading Central, a range of useful trading widgets, and so much more! Click the banner below to receive your free MetaTrader Supreme Edition download!
The Effectiveness of Robots
Though FX robots promise to make beneficial trades, not all of them are what traders expect them to be. Moreover, some federal governments consider them to be scams. In a similar way, you are not likely to find any article in Forbes, the Wall Street Journal, or any other respectable news source that promotes them.
What's more, even online robot merchants try to move their robots in rank by claiming that their opponents' ones are scams. A lot are advertised with false claims by people who have made serious money applying these systems. The truth however, is that a great number of investors and traders have lost a lot of money using so called 'free' Forex robots that work. There have even been circumstances in which whole accounts have been wiped out.
If you really want to know how effective robots are, you should check out reviews and authoritative testimonials online. Although they can scan millions of different charts within seconds, most often 90% will turn out incorrect information. This is understandable - because FX robots are just robots. Even though they are capable of performing highly sophisticated tasks, and many at once, every Forex robot or Forex robot free is still deprived of creative thinking. They cannot imagine what may take place in the near future, as their functionality is restricted to how they were initially programmed, as well as past performance.
For traders who use robots, they should not fully depend on it to conduct all of their trading activity. Ultimately, trading demands a considerable amount of human research and observation. Additionally humans, and not trading software, can actually follow up with diverse economic conditions, and keep up with the news in the financial world. Forex robots, which are thought to be Forex robots that work, can solely find positive trends as well as trading signals, but occasionally their functionality is unfavourably affected by either jittery trends or false information.
In addition, hackers and viruses may also hinder robots. All in all, automated FX trading software, or Forex robots, are nice opportunities for their designers to make money, but offer little benefit to you as a Forex trader. It is a debatable question - will a robot make you rich, or will it just wipe out your trading account?
One thing is likely - their developers can potentially become millionaires. Smart designers are aware that people yearn to make a lot of money, and try to ensure that robot Forex trading appears to be one of the finest ways that they can achieve this. Nonetheless, they exploit this as a possibility to design a robot, or any other software (or even a DVD, webinar, seminar, e-book etc) to sell and prosper.
If the robots they sell could actually make a huge amount of money through trading the currencies, then what is the point in selling them to others and not utilising them on their own Forex accounts? The answer is logical - robots can barely make money for a Forex trader. Can a $99 FX robot or a free Forex robot really make hundreds or thousands of dollars every month? If it could, you have to ask yourself - would it really be sold for such a relatively low price?
If it was this easy to earn money utilising robots, nobody would ever go to work. It is possible that robots can make money for a restricted time period, but they could start losing after awhile - and the money earned by the 'best Forex robot' with one position may disappear before you can claim it. In addition, the vast majority of robots are scalpers. They make just a few pips with every position they take - and they can set a considerably tight target. The chances of surviving with such a strategy are quite limited for a trader.
Successful FX trading is based on knowledge, proficiency and skill. It involves analytical thinking, and something visual. When looking at what are Forex robots, it is clear that they cannot properly work in this manner. Market conditions tend to change all the time, and only an experienced Forex trader can distinguish between when to enter the market, or when to stay away.
We have described the aspects of applying robots in Forex trading from a rational point of view. What we hope can be concluded from this article is that instead of spending your time and capital on things like automated FX trading software robots, it would perhaps be better to devote time to learning a good trading system.
Eventually you may become a professional trader who relies on experience and knowledge, rather than using computer algorithms and codes by someone who is not a Forex trader at all. It is completely up to you whether Forex robots are worth your attention - and only you can answer the question of: Do Forex robots really work?
Learn How To Trade Forex
It you would like to learn more about automation In Forex, why not read our related article?: How Does Automated Forex Trading Work? Additionally, did you know that we also offer trading courses for beginner traders? Learn to trade step-by-step with our educational course, Forex 101, featuring key insights from professional industry experts, click the banner below to register for FREE!
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the