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Forex Trading Robots: Your Ultimate Guide to Forex Auto Trading


Nowadays, there are numerous trading approaches and systems both for trading on forex and CFD contracts. And since it all can be transformed into a computer algorithm, the number of automated trading systems is proportional to the number of ready strategies. Even if you already have a ready profitable strategy, it can be computerized in the form of a forex trading robot, which will do the work of the trader.

What is a Forex Trading Robot?

A robot is a special trading system that works in automatic or semi-automatic mode. The first suggests not only a sophisticated market analysis and recognition of signals to open trade but also an autonomous placing of orders with all the necessary parameters ( Stop Loss, Take Profit, leverage, and so on). These algorithms have become extremely famous among beginners for a reason. They do not have enough understanding of the market for profitable trading and market analysis. In the case of a forex trading bot, all of this is built into the algorithm. Therefore, it completely and partially eliminated the need to study this complex science.

Traders often use trading advisors for passive income. Even seasoned traders who open positions manually use such programs from time to time. For instance, for night trading, when a trader has a rest. It allows making the most out of trading.

We should mention that the main mission of forex bots is to off-load the trader and take over the tasks partially or completely. It is the absence of an emotional aspect that is the major benefit of such algorithms. It is human nature to make mistakes. But it is not characteristic of automated software. It will never get exhausted and can work 247. And it will never shift from its algorithm and will strictly follow the predefined script, and the trading plan. The trader can succumb to the excitement and start trading outside his strategy. This is another common mistake and the reason for losing the deposit.

It is possible to create a trading advisor at your own discretion and desire. You can make a fully automatic program. Or it can be a program that will simply signal the crossing of two Moving Averages with different periods.

There are forex automation robots with a complex algorithm, which includes not only the combination of numerous indicators but also setting Stop Loss and Take Profit orders automatically. And there are simple ones, which will simply determine the current trend in the market. Unlike a human, such a program will open trade only at the moment when all the conditions prescribed in the algorithm are satisfied.

What Depends on the Trader

In real trading, a lot depends on the trader himself. Forex bots, as the reviews confirm, greatly simplify the entire work process, but it still requires your intervention. If you do not follow the strict recommendations attached to the Expert Advisor, then you need to regularly check whether the strategy is working the way it was originally intended.

Changing the degree of trading risk in the settings immediately changes the specifics of the algorithm's execution. The lower the level you set, the less risky the operations will be. At the same time, the profit will be relatively low. And vice versa, the higher the risk tolerance, the higher the potential earnings through the Expert Advisor.

Due to the fact that the trading expert cannot conduct a fundamental analysis by itself, the interference in its work on the eve of important news, as well as after unforeseen events on a global scale is inevitable. You should not forget about the profit-taking, because the work of the Expert Advisor is sometimes unstable, including due to fundamental factors, so some of the accumulated funds can quickly disappear under the influence of an unforeseen jump in price or technical slippage.

Should I Start Using a Forex Automated Software?

If one understands in more detail and learns a lot more about such robots, one can get these results:

You should not say right away that this robot does not work. This is fundamentally wrong because this software is designed as an assistant to the user, not as an opportunity to grab more money. The forex automation helps the trader free up a little more time for his personal leisure time while keeping his work completely intact. The forex developers' goal was to help the trader, not to get money out of nothing.

Therefore, you should not pay attention to those users who are sharply negative about the program and leave unflattering reviews. The majority of such people are living with the dream of making a lot of money without doing anything, although any sensible person understands that this is unrealistic.

The forex bot is designed for experienced users, such a program can't help beginners. Without understanding all the important nuances of investing, it is impossible to make money on your own or with a robot.

How to Set Up a Trading Robot in MetaTrader 4

After downloading the archive with the robot, you may find files with the extension .ex4 or .mql inside. This is the Expert Advisor itself. Both files are suitable for trading. The archive may also contain other files, such as libraries or indicators. The robot itself should be placed in the "Experts" folder, which is located in the directory of the terminal. You can get there by clicking "File -> Open Data Folder". The "Experts" folder will be placed inside the "MQL4" folder. If the package contains any libraries, they should be placed in the "MQL4/Libraries" folder. Presets that contain settings of the Expert Advisor for certain trade conditions have the .set extension. They must be placed in the "MQL4/Presets" folder. If the indicator files used by the Expert Advisor are included, they should be placed in the folder "MQL4/Indicators". Their extensions are the same as the robot's ones, i.e., .ex4 or .mql. Then you need to go to the menu "Tools -> Options" on the top panel of the terminal. In the window that opens, open the tab "Expert Advisors" and check the boxes. Then go to the Navigator and find the desired robot in the Experts tab. If it is not there, reload the terminal. Then, from this window simply drag the advisor with the mouse cursor to the price chart of the desired trading instrument.

This will open a window of robot settings. It allows you to change various parameters, such as the trading volume in lots, which the robot will open the trade with, and much more, depending on the advisor. If the Expert Advisor comes with presets of settings, then you can apply them by pressing the "Load" button to select their file and apply it. And it is also possible to save your own set of settings by clicking the "Save" button. After you press "Ok" a smiley face with a smile should appear on the chart, it means the robot is working as it should. If the smiley face is sad, right-click on the chart and left-click on "Expert Advisors -> Properties". The Expert Advisor settings will open again, where we will be interested in the "Common" tab. Check the checkboxes here. And you need to check that the top panel of the terminal was pressed and the lit green button "Auto-trading".

Pay attention that each forex bot will have its own settings, which may have different names and functions, and there may be absolutely any number of them.

But there are basic parameters that can be frequently encountered in EAs, so let us analyze the most common ones. The values of a parameter may be specified in numbers, such as, for example, lot size or maximum allowed number of orders to be opened. It may be that this parameter is in charge of some function, or it may be turned on or off. And its value may just take these phases. If you choose On, True, or 1, the function is enabled. If Off, False, or 0, the function is disabled. Here it all depends on how the developer decided to set the values of such parameters.

You may often see such parameters:

This is a basic set of parameters. But there are also robots that include more detailed and complex settings. And if the developer didn't provide detailed instructions, a beginner simply won't be able to trade. And if set up incorrectly, the robot will trade at a loss.

When a Trading Robot Can Be Useful

In theory, a forex automation is useful in that it allows the trader to "unglue" himself from the computer screen and not wait personally for the right time. This is tedious and complicated. Where there is even the slightest option to get rid of the routine and let your energies go in a more productive direction, a forex robot will help to do this. But it won't make money for you.

How Popular and Safe are Trading Robots

The big disadvantage of automated trading systems is the possibility of failure. The software doesn't exist on a server, and a local software or connection failure can easily wreck your trading. You won't even notice until you run out of money. And in forex, they will run out very quickly. In addition, the real, not advertising experts keep repeating that the automated trading systems have never been designed to completely replace humans - their task is to simplify life. Yes, it is easier and faster to dig with a tractor than with a shovel. But no matter how well it can do this task, it will not plow the ground while you are lying on the couch. The same thing is true for forex trading robots.

Pros and Cons of Using Forex Trading Robots

Algorithmic trading has many advantages over traditional trading methods.

Here are the main advantages:

There are some disadvantages to this approach. In particular:

Simply put, you need a flawless algorithm for a perfect result. But it is obvious that such an algorithm can be created only for static systems. The market is dynamic, which means that no ideal trading scenario can exist a priori.

Classification of Forex Trading Robots

There are several types of indicators, which differ in the methods used and the way the data is interpreted.

How to Choose a Trading Robot

Algorithmic trading on forex is an attempt to attract more investors/traders to the market. It works, but it requires a lot of sensitivity in choosing trading scripts. To avoid wasting money on nonsense, focus on the following:

Trading Robots Strategies

There are dozens of forex trading strategies today. Not all of them are suitable for algorithmic trading. Therefore, you can apply such approaches until you figure them out for yourself.

The Cost of Forex Trading Robots

Since free stuff usually does not work well and an average user of trading robots for forex is not very knowledgeable in trading, the demand for miracle trading scripts grows rapidly. The developers are flooded with orders and raise prices. Personally, we have seen different price tags.

The cost depends on things like:

The price range is 300- 5000 dollars. There may be more expensive, but we have not specifically looked for it.

Conclusion

In general, there is nothing outrageous in the development of algorithms for automatic trading in the forex market. After all, a live trader and a machine are guided by the same mathematical algorithms. Some such systems are successful, most are not. And in any case, successful trading is impossible without personal progress.

Open any rating of top traders or investors - not a single random person. Either those who trade personally and have a decent skill or those who hire such people for work. And not a single person who made a fortune on trading bots.

About AdroFx

Established in 2018, AdroFx is known for its high technology and its ability to deliver high-quality brokerage services in more than 200 countries around the world.  AdroFx makes every effort to keep its customers satisfied and to meet all the trading needs of any trader. With the five types of trading accounts, we have all it takes to fit any traders` needs and styles. The company provides access to 115+ trading instruments, including currencies, metals, stocks, and cryptocurrencies, which make it possible to make the most out of trading on the financial markets. Considering all of the above, AdroFx is the perfect variant for anyone who doesn't settle for less than the best.

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