What are Forex robots and do they really work?

Forex trading robots

Forex trading is versatile due to the different trading styles, strategies and systems that can be used. In the Forex market, there are traders of all levels of proficiency and each 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. Automated trading requires a lot of research to find the right software that will perform trades correctly.

Sitting back and letting an automated device do 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 helps 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 to address this question.

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How does a FX robot operate?

FX traders want to use robots just 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 profits 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 pips target and may not even use a stop-loss. They can be classed as successful, as they do make profits in each trade even if it is only a few.

When an unanticipated and strong range breakout occurs, it just wipes out the small profits they have made. Some robots which are promoted as the best Forex trading robots, can gain profit in a positive trend, although they lose money in a choppy FX market, so the discovery of a great trend to follow is an essential task.

The effectiveness of robots

Though FX robots promise to make beneficial trades, not all of them are what traders expect them to be. Moreover, the federal government considers most of them to be just 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 is 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, then 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 - 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 and 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, 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?

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One thing is known for certain - their developers can be made 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 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.

We would like to draw your attention to one interesting issue. 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 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 then they can start losing - and the money this best Forex robot earned 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 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 way. Market conditions tend to change all the time and only an experienced Forex trader can distinguish when to enter the market, or to stay away.

Conclusion

We have attempted to describe the aspects of applying robots from a rational point of view. What we hope can be concluded from this article is that instead of spending your time and funds on things like automated FX trading software robots, it would be better to devote some 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 does Forex robot really work?

Read also:
How does automated forex trading work

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