In this world of busyness, everyone wants the best of things with the least efforts possible. That’s why in forex trading, there has been an increasing number of automated trading tools.
A forex robot is a computer-based software that is set up with fx trading signals so as to know whether to buy or sell a currency pair. There are different types of robots but most are either semi-automated so that you can have the ability to trade manually at times, and fully automated where the robot runs your account on complete auto mode.
Are Forex Robots Profitable? Is It Safe to Use?
If you mean safe in the sense of 100% risk-free guaranteed money, then it’s not safe.
Forex robots are not risk-free. But if programmed correctly, they can be profitable. To be profitable using a robot, it’s good to begin by first purchasing one of high quality. Scour through the web filtering everything else and focus on only those with positive reviews of many people and professional traders.
Once you’ve got one, backtest it on a demo account to get the feel of it and see the results it can produce on a real account. If it gives you some positive results, try and focus on a single currency pair and observe how it works.
Most good robots only work best on a single currency and at specific times. Focus on that if your main goal is to maximize profits. A robot that gives you a few pips consistently is regarded as profitable.
How Forex Robots Operate
Forex robots are created with implanted trading signals so that they can spot any opportunities of when to trade or not. They work by scanning numerous charts constantly throughout the day and may trade for you when they find setups in the case of the fully automated robots.
Most robots don’t work in unstable market conditions such as during strong range breakouts. They follow trends so in times of clear trend setups they do make money for you.
Pros of Automated Trading
1: Ability to trade anytime.
With automated trading, you have the ability to trade at the time. Forex robots never require to replenish for things like food or sleep unlike humans, hence they can not miss trading opportunities.
2: Ability to process more data
Due to the vast features installed in a robot to identify trading opportunities, robots are by nature able to process more data from the markets to produce more signals. A robot spends its time searching all around the market for trading opportunities without distractions. With more data, a trader is able to open more profitable trades.
3: No emotions attached
The greatest weakness in traders is their ability to control their emotions. Every time a trade gets into profit most traders get too excited and if it’s a continuous stream of profits, one is even inclined to believe they’re forex masters.
Conversely, when traders get into a streak of losses, they lose their morale and some usually end up depressed.
With robots, they’re not programmed to experience emotions so they open positions based on logic.
4: Ability to backtest
The good thing with robots is you can easily backtest them before programming them on your real account. Always test their results on a demo for at least a month and under different market conditions for you to see what times and which currencies work best.
5: Trade on different currencies simultaneously
A forex robot can work on different currencies at the same time since that’s how it’s programmed to work, unlike a human where you can only focus on one trade at a time.
6: They can be profitable
Robots under optimal conditions can be profitable for your account. The cheap robots on the web that are constantly advertised may not really make you money, but investing in a good one may make you money for some time.
Cons of Using Forex Robots
1: A robot doesn’t know how to filter the market.
Robots mostly work under smooth markets where the trends are clear. In choppy or rangebound markets, a robot gets confused and doesn’t really know how to trade or derive signals.
In a fully automated account, it’s very easy for your account to get blown since every small fake signal that comes out the market will deem as a signal, thereby opening a trade.
2: Most robots scalp
Most robots focus on only gaining a few pips per open trade so they only focus on timeframes such as 5 and 15 minutes. If you’re a swing or day trader, there’s few to no robots that focus on longer charts.
3: You can still lose money
In the pros, I know I said that they’re profitable. And it’s contradicting to what am saying right now. The truth is, you’ll lose money either way. It’s wrong to say robots don’t work – since some do. But it’s also wrong to say they do – since most don’t.
Robots are money making machines for their creators. If someone spent hundreds and perhaps thousands of hours creating such a product that will make you millions, why would they sell it to you for $99 only? Or worse, give it to you for FREE?
Besides, most robots don’t work in choppy markets so, during those times, a robot will just open positions left-right thinking they’re true setups.
Let a robot identify the setups for you, it may even trade for you occasionally but always be up to date with what’s happening in the market.
Enter Forex Robots
We take a great time to research the best and most profitable robots that will relieve you occasionally from your account. Spend some time browsing through our products list to find the best robots for your needs.