Forex trading robots: what it is and why they are needed

Greetings to you, dear friends. Today, with this article, we are starting to cover another area of ​​online earnings. This type of earnings, perhaps, is the most famous and widely touted, and his name is Forex. Agree, at least once, but you came across this name - someone heard, but not aware of what it is and how it works, someone, on the contrary, has already tried himself in this direction and was disappointed, and someone has succeeded and continues earn. Anyway, the topic is very popular and our blog decided to pay a little attention to this possibility of getting profit. But before proceeding to the topic of the article, let's understand some concepts and definitions. Therefore, let's start with the basics, find out what Forex is and how it works ...

What is Forex


So, Forex (Theeign Exchange - foreign exchange) - this is the interbank foreign exchange market. There is a great many currencies and in order to exchange one for the other, the Forex market is used. The main participants of this market are the central banks, various funds and brokers, who exchange with each other.

If we describe everything in simple words, then trade in the Forex market is conducted according to a well-known principle - buy cheaper, sell more expensive. The resulting difference is your profit. Anyone can become a trader and make deals - there are no obstacles for this, the main thing is to have a computer with Internet access. And the first step that the ordinary user needs to take is to choose a broker. Since it can open the gates to the world of trade and wealth. Brokers, in turn, trade with banks, and banks with themselves, but this is not so important to us.

Why do we need a broker? He will be responsible for technical support - he will give access to the programs with which you will conduct transactions, will provide the necessary information support, conduct training on trade, and indeed, without his help, it will be difficult to enter this market. There are quite a lot of brokerage companies, so one should choose from the most famous ones that have been working for a long time, who have a lot of customers and who value their reputation.

Suppose you have decided on a broker. In the second step, it will be necessary to select the type of control, i.e. decide who exactly will make deals. And there are three options:

  • The first is yourself. In this case, all the work falls on your shoulders - from studying the market and the situation on it to the conclusion of transactions. This option will give you the opportunity to understand everything thoroughly and understand how it works from the inside. But be prepared to devote all your time to this activity and put up with financial losses in advance, as any novice trader makes mistakes.
  • The second is trust management. You transfer the right to conclude transactions to a professional trader who trades instead of you and receives a reward for it. But it should be understood - a professional trader is also a man and emotions are not alien to him. Therefore, the probability of errors is not excluded, although it is not as high as that of newbies.
  • The third is automatic. This option involves the use of robots, which themselves analyze the market and make transactions. This type of trading involves almost no personal involvement in the process. You go about your business, and the robot trades for you and makes a profit. And since we all want to earn on full liability, this option is just for us :)))

Robots - who they are and how they work


The job of a trader is to deeply analyze market situations and then make a decision. An important condition for long-term and profitable work is the presence of a certain strategy. It is she who tells you when to open a deal, and when to get out of it in order to make a profit. All such strategies are based on the fact that market situations are constantly recurring, and therefore it is possible to predict their outcome. A trader, having chosen a certain strategy, will follow a certain algorithm and carry out a series of actions. If you write a special code that will perform the same actions, under the same conditions that the trader is guided by, we will get a trading robot.

A robot (trading robot, bot, advisor) is just an ordinary program (and not an android from a science fiction film) whose main task is to simplify the decision-making process, or to fully automate the entire trading process. The robot itself is installed and continues to work on the trading platform (the most famous MetaTrader 4 and MetaTrader 5), through which the broker has the ability to execute all orders of clients. Robots, as a rule, trade on these platforms based on indicators of technical analysis, although they can use a mathematical model of probability. The creators of robots take one or several indicators as a basis and fit them into the logic of the robot so that it can not only detect and show signals, but also open / close transactions. Thus, robots are needed to perform repetitive actions and operations, but at maximum speed and with high accuracy. Therefore, at the very beginning of the path, the task of the trader is reduced to the correct choice of such a robot. After starting, you can relax, go about your business and watch as the robot does all the work.

It may seem that this is a complete automaton, but in reality everything is not quite so. After selecting a robot and connecting it to the platform, you need to configure it. Each robot has user settings with which you can adapt its work to your needs and preferences. Depending on the results of trading, these settings can be adjusted to achieve the maximum result. Therefore, from time to time, it will still be necessary to intervene in his work. In the case of semi-automatic, when the robot only monitors the signals, and the trader makes the decision about the transaction, the human intervention factor increases significantly.

In addition to the separation of robots on the basis of their work - automatic and semi-automatic, they can also be classified according to the terms of trade:

  • trendy;
  • robots that work when the price moves sideways;
  • scalping;
  • multicurrency;
  • robots that work on the Martingale system;
  • combined;
  • ...and many others.

Depending on your preferences, strategy, expected profitability, you should choose one or another robot, or use a bunch of several. But it should always be remembered that this is just an auxiliary tool of the trader, although he is soulless and devoid of emotions, but still a tool. The main decisions you make when you choose a robot, configure it and press the start button.

Pros and cons of using robots


And now let's consider what are good robots for traders and why they should be used, but at the same time let's not forget that there is nothing perfect in the world, and our robots also have drawbacks.

Pros

  • The robot is completely devoid of emotions, fear, uncertainty, and indeed any feelings - it will work only according to a given algorithm and only with the signals that its indicators give. On the nerves, he will not merge the entire deposit under zero in an attempt to recoup.
  • The robot does not know fatigue - it conducts round-the-clock analysis of financial markets and constantly monitors trading signals.
  • A robot does not make minor mistakes due to inattention, unlike a trader, who may confuse something or not click from fatigue.
  • The robot analyzes all the markets at the same time, and it does it instantly, unlike a trader who can monitor only one or several.
  • The robot has an incredible speed of work - it analyzes the data, makes a trading decision, builds a chart, opens a deal and all this in a split second.

Cons

  • Lack of intelligence - a clear work on the algorithm can be a minus. There may be situations on the market when it is necessary to make a non-standard decision, and if the trader is able to do this, then the robot will not be able to re-arrange.
  • Rapid obsolescence - the market situation is extremely changeable, so yesterday’s algorithms simply cannot be applied to today's market conditions. Every robot needs constant upgrading. But this item can be omitted if the development team supports your project and updates the robot on time. It is also important that such an update be free, and not at the price of a new robot.
  • Force majeure - the robot is good because it can work 25 hours a day and 8 days a week, but leaving it alone, you are not immune from the fact that you can lose connection to the Internet, disconnect electricity or something else happens. If this happens, the robot will stop working and there will be no one to follow the placed orders. And this in turn will entail losses.

Which robot to choose


If you weigh the pros and cons, then it's time to choose a robot. And here you can fall into a small stupor. There are simply a huge number of robots and their number is measured in hundreds.

There are plenty of free options, and there are paid copies, the price of which can reach thousands of dollars. The temptation to take something for nothing is great, but here you have to think about something. Why would the author hand out his child to the right and left completely free of charge and make strangers richer? As a rule, such robots will not earn anything, it is good if they keep the deposit, and do not merge it to zero. Therefore, no matter how much the authors praise them, the maximum for which they can be used is for a test on a demo account. But this statement may not be relevant if you receive a robot from your broker, for which he has already paid, but to maintain customer loyalty, offers it as an additional tool.

If you want to not only work, but also to earn money, then you are on the way only with paid robots. But here there are pitfalls. It’s not a fact that a 10 $ 000 $ robot will work better than a 500 $ robot. In any case, each program needs to be checked (for this, a demo account is again used), during which it will be clear whether the robot meets all the requirements stated by the developer, how he is friends with the trading platform and your broker, how he behaves with a large deposit and etc. Having tested the robot for a couple of weeks or a month, you can proceed to work with a real account, if of course you are completely satisfied with the results.

When choosing, of course, one should take into account a number of parameters - who is the developer, how long on the market, how many clients, are they satisfied with such cooperation, how often the robot is updated, is there user support, you also need to read what they write on forums and thematic blogs about this robot. Only after that you can give money for it.

Conclusion


It’s up to you to use a robot - having weighed the pros and cons, you will be able to choose whether this option of trading is suitable for you personally or not. But the fact that robots are a very convenient tool and a great helper is a fact. They greatly facilitate the life of the trader and help out in many situations. But you need to take a very serious approach to choosing such an assistant - because of the variety of options presented, only a few are worthy of attention, and the rest of the pile is either free garbage or an attempt by novice developers to make some money. But even if you choose a robot that is excellent in all respects, you shouldn’t let everything go to chance, because even the best have bad days. Do not rely on the full automatic, help the robot yourself - adjust it in accordance with the recommendations of the developer, update it on time and generally follow its work, then the robot will respond to you with gratitude in the form of the resulting profit.

This introductory article ends, and if some of our readers have already used such robots, then let them tell about their experiences in the comments.

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  1. kiryamalik
    12.06.2021 09:51
    #10
    Thank you for the article
  2. ptachblr
    10.12.2020 10:35
    #9
    At one time, a Lending bot worked for me on Polonix, it was a theme. No risk, a good percentage per day. I think to return to this, only that bot closed the project (more precisely, sold it to someone). We must look for something new. And forex is the same lottery, you can make money, but you can lose.
  3. Robin2020
    02.11.2020 07:03
    #8
    Thank you for the article!
  4. Roman38rus
    21.09.2020 14:24
    #7
    Good article. I learned a lot for myself. I will deal with this niche, maybe that will work out!)
  5. NikitaPuchkin2000
    11.06.2020 14:52
    #6
    Thank you for the article. Superficially kind of studied. Pretty hard
  6. Anzhel
    14.10.2019 22:50
    #5
    A difficult topic, to do this, you need to study this topic more deeply
  7. truck23
    13.09.2019 03:24
    #4
    Yesterday's severe fluctuations of several currency pairs -85 + 150 points in a few hours) immediately brought me 1,5%))) I am satisfied with the result!
  8. keifor
    12.09.2019 10:41
    #3
    And for the past month, even taking into account the PPC of what market fluctuations, the robot worked for a week, then it was turned off for two weeks on the recommendation of a service, then I worked on underestimated lots for another week and earned 17%

    1. truck23
      13.09.2019 03:25
      #2
      Do not use the Wall Street bot by accident?
  9. LegenDa
    15.03.2019 08:12
    #1
    Interesting information! We must deal with these robots
  10. keifor
    07.01.2019 12:56
    #0
    We already use 1,5 for these bots, in fact, everything is written correctly, there are both pros and cons, but thanks to technical support and constant updates of the bots, there are practically no consultations in the chat about the work of the robot.
    For 1,5, the work of pah pah pah is nothing critical. Earnings per month at least 20% per month was a maximum of 56% ...
    Good stable passive income in contrast to the contribution to the bank.
    If anyone is interested, I can reduce such developer-written programs with the developer, but good bots are expensive, it’s not 50baksov to throw in the HYIP)))
    1. truck23
      13.09.2019 03:27
      I agree. This is not a hype, it is much more stable earnings with the right choice of a robot and a normal deposit.
    2. molotov cocktail
      08.02.2021 10:30
      Please write your contacts (preferably in telegram) for communication