What is a Forex Trading Robot?
A forex trading robot is essentially a computer program that uses a set of trading signals to determine if buying or selling a pair would likely be profitable. They are built with the idea of removing and human and therefore psychological part of trading as this is often detrimental to the trader. It is possible to buy such trading robots online but caution should be taken if you do decide to buy them like this.
How might a robot help you trade?
Forex trading robots can use automated trading, meaning that they can operate 24/7 unlike their human counterparts. Getting the right system going does take quite a lot of research, however. Putting your feet up and letting a robot trade for you sounds tempting doesn’t it? However, to maximise profits, robot users must find a good pair of currencies as well as the right time frame for trading. Some robots can scan multiple charts at once, which is physically impossible for humans! Furthermore, they can determine themselves when it’s best to trade or to hold back.
Are all forex trading robots the same?
Most trading robots are set up with MetaTrader, using MQL scripting language. This allows traders to create trading signals as well as manage trades and place orders. Buyers should be aware that sometimes companies set up quickly and often have money back guarantees on offer to entice new customers. Often times, these companies disappear a few weeks later – taking your money with them! They are not trustworthy systems to assess opportunity and risk.
There isn’t a perfect trading robot system. If there was, people wouldn’t want to share it with others! They’d want to reap their gains themselves without letting others in on their secret.
What if you want to go it alone?
It is possible to develop a Forex trading robot yourself. This would benefit someone who didn’t want the risk of a third-party trading robot. To get going with it, you would need to create a demo account making sure that the broker you choose supports MetaTrader. You can then start to develop MQL scripts and start experimenting.
Once your system performs well with a demo account, you can then apply it to paper forex trading in order to test how well it works when ‘live’. If your program is successful it can be built up using increasing amounts of actual capital. If it’s not successful, you can then tweak the program while still working with small amounts of capital.