Using Bots in Forex Trading – Does it Actually Work?
In this age of automation, we’ve become extremely dependent on technology in nearly all walks of life. So, why should trading be left behind? And that’s why many investors and trading companies use forex bots (or forex trading robots) and Algo-trading, for automating the process of trading.
How helpful are they, though? In this article, I will shed some light on my experience with a handy resource, Forex Robot Nation, as a key reference point when looking for recommendations and reviews on reliable forex robots. But before we begin, here’s some background on what forex robots are and how they can be used to help trade currencies better.
What are forex robots and how do they work?
Forex robots help automate certain processes involved in trading, performing repetitive actions based on some key analysis. Before I delve deeper into the world of forex robots, a word of caution: forex bots should be considered as a supplementary tool to aid you in fx trading, and cannot be relied on entirely, especially when it comes to trading long positions.
On the one hand, there are websites like FX Leaders, which offers manual forex signals and trading ideas, provided live by real analysts, and cannot be copied automatically (we think of our trading signals as free ideas and tips and let our followers decide whether they wish to copy the signal or not). And on the other are forex robots which are automatic, allowing traders to simply copy-paste the signals into their own platform. They offer a passive experience to traders, without the need to actively follow and copy them. Obviously, there are pros and cons for both methods.
FX robots are unique programs or software that leverage complex mathematical algorithms and analytics using technical indicators to publish trading signals and strategies. Now, it sounds simple enough when you look at the definition – that there’s a program out there that can automatically calculate and arrive at trade ideas you can employ to generate profits. However, it’s not as simple as that, and comes up with several riders.
Trading platforms like MetaTrader 4 (MT4) support the use of robots that can either deliver trading signals and ideas to traders or even go one step further and set up the trades on the platform automatically, without any intervention from the user whatsoever. Of course, the latter takes automation to a whole other level, but would you be willing to trust such bots with your trading capital?
Most forex bots offer the ability to customize the various parameters and choose from a wide variety of technical indicators to analyze and depend on for input data. In addition, you can also customize forex robots by specifying the spreads, currency pairs you are interested in trading. A fully automated trading system like forex bots can offer analysis of technical, price action, and put out trading signals with high probability of success.
Do I need them?
So, are forex robots scams? Or do I recommend using them? Well, the answer is somewhere in the middle. While the majority of the bots I have come across were really bad, providing poor results, there are some cases of nice tools out there, tools worth testing and checking out.
What makes for a good, reliable forex robot? While most forex robots out there claim high success rates and winning ratios, don’t let yourself get carried away by the hyperbole. Ensure that the automated system you pick can offer insights and results on live, real-time trading instead of relying in simulated trading scenarios alone to come up with a success ratio.
How do I find a reliable forex robot to use?
Fortunately, if you’re in the market considering a forex bot, a good place to get started would be on Forex Robot Nation . This website offers a plethora of advice and recommendations on various forex robots available in the market, including reviews, in-depth tests, and more, so you can find the optimal forex bot to assist you in forex trading. Before going any further, I recommend that you shortlist a few interesting forex bots that you are considering and then read their reviews on the website.
A good thing about the website is that it offers reviews on a wide variety of automated trading systems from expert advisors. The website has reviewed and performed in-depth tests on several automated trading providers before sharing their insights on the most reliable and accurate solutions for you to choose from. Forex Robot Nation has been providing advice and tips to forex traders for over eight years, giving them ample credibility in a market where trust is highly valued. Apart from discussing various features, pros and cons of each tool, the website also mentions how long each of these tools have been in the market, letting you take an informed decision when choosing a good forex robot. I am especially fond of the screenshots of actual client reviews also included in each EA review.
Forex Robot Nation – drilling down
Forex Robot Nation also rates each product reviewed on multiple categories, on a scale of 1-10, assessing pricing, strategy, trading results, client feedback and customer support. It offers a comprehensive, unbiased review of each tool and even gives a brief snapshot of pros and cons for quick review if you are short on time to read through the in-depth reviews.
In addition, the website also offers reviews on top forex signals providers, forex indicators, forex social networks, forex courses and even forex brokers for additional reading. However, the primary focus area remains forex robot reviews. For newbies, there are also a host of tips to help get started in the world of forex trading, so it’s interesting for all levels of forex traders.
Another key factor that I like about the website is that it only provides reviews on forex signals vendors who are able to publish verifiable performance reports about their trading results. Ultimately, trading is a numbers game and winners are picked on the basis of the likelihood of profitability, and that, in my opinion, makes the reviews a whole more transparent and trustworthy.