Forex trading is an activity that requires skill, discipline, and a lot of time. You will need to spend hours and hours staring at the computer screen to look for trends and patterns. If you are serious about forex trading and aim to make money, you cannot do away with this. But not all traders have all the time in the world. Some are trading part-time and spend most of their time at the office. Others must take care of sick parents and have other obligations at home. For this reason, forex trading bots have been popular.
A forex trading bot is a computer script or software that automates the way you do trading. It makes decisions when to buy or sell a currency pair on behalf of the trader. By using a predefined script or programming language, it automatically performs trading transactions. It scans thousands of signals and triggers in the forex market in just a few minutes, something that even experienced traders cannot do.
Forex trading bots are also called forex EAs or forex expert advisors. It is considered an expert since it looks at historical data and trends to come up with recommendations. And at times, it will go beyond giving advice and perform specific actions like buying and selling currencies. It serves as an advisor because the trader will be the final decision-maker. The trader can follow the recommendation of the trading bot or follow his own.
A forex bot uses data to make recommendations or decisions. It does not have emotions experienced by human traders that can result in more losses. For example, you are trading on the EUR/USD currency pair but are losing money for consecutive times in the day. The usual reaction is to increase trading in the same currencies to win back the lost funds fast. But this will only result in more losses. It is best to take a short break and consider other currency pairings. This moment of emotional outburst will not be an issue when you use a forex trading bot.
Forex robots also do not require any trading experience before you can use them. These bots already come pre-programmed with the basics to make trading decisions. So, you have nothing to worry about if you are a beginner and advanced trader. It comes with instructions on how the bot works and explains the signals or triggers used by the bot. If you encounter any problem, a legit forex robot developer will have around-the-clock customer service support to help. It should also have an email address or phone number to elevate any concerns regarding the bot service.
Forex bots should make life easier for the trader while still aiming to achieve profits. But no computer program can guarantee profits. No matter how advanced the artificial intelligence (or AI) program is. First, the nature of the forex market is risky. A great majority of traders lose money while trading, even if you are an experienced trader. Research data shows that out of three traders, only one will succeed. That is almost 70% failure rate. So, if you cannot afford to lose your investment, then put your money elsewhere. Second, a lot of factors affect the value of currency pairs. It includes regulatory policies, economic indicators, political changes, and environmental and health-related concerns. These are things that even the most advanced forex bots will not be able to predict.
In addition, some so-called developers are scammers. They will sell their forex trading bots for hundreds of dollars but will not deliver on their promises. Some will even buy advertisements to show how wonderful their bots are. Others will pay people to make testimonials on how their bots helped them make millions of dollars in profits. Take extra care when looking for forex trading bots. Make sure that you use only legit developers.
Also, remember that forex trading bots are from third-party suppliers. You still need to be sure that the bots will work on the trading platform used by your broker. The last thing you want is to spend hundreds of dollars on a program. Only to be rejected by the trading system. Most trading bots work on the MetaTrader 4 or 5 platforms. True, these are the most popular systems used all over the world. But some big brokers use only their proprietary trading system. And because these are intellectual property, the developers of the bots will not be able to tamper with the system. The high-security levels and data protection systems will also limit how trading robots work inside the trading platforms.
So, are forex trading robots useless? Not really. Especially for those who have the money to subscribe to them. They can be beneficial to some extent if you choose the correct bot service. And you must select the legit developers to benefit from customer service support in case you encounter problems. Some forex trading bot sellers even offer a free one-month trial. Others will have a refund scheme. It is a money-back guarantee policy for users who find the bot service unreliable after a few weeks of live trading. Take full advantage of these offers to test if bots can help you in your forex trading.
What are the factors to consider in choosing a forex trading robot?
Using a forex trading bot is a personal choice. Most traders prefer to do manual trading. They want to have control of their currency pair decisions. But, if you lack the time and think that bots can help you, you must choose your bot provider carefully. Here are some factors to consider in selecting a forex trading robot.
- Cost. Most forex trading bots are available for sale. The cost can range from ten dollars per month to hundreds of dollars. Some get paid on monthly subscriptions. Others get billed one-time only but at a higher cash-out rate. Check how much you are willing to invest in a robot service. Keep in mind that this cost is an extra expense to you. You will still have to allocate funds for your actual trading activities. And you need to consider the fees or commissions to pay your broker or trading platform, provider.
Beware of free forex trading bots because these are most likely scams. Since these bot developers are separate from the broker, they need to make money from somewhere. If they are legit, then they must charge you for the robot development fee. Sometimes they charge a download fee or monthly subscription. But scammers might be more interested in your personal information and credit card details. Even if they offer free service once they ask for credit card information to verify your identity, say no.
- Past performance data. A good forex robot will have positive credentials to back it up. Your bot seller or developer should share information on how well they have performed in the past with their clients. And not just any clients, but real forex traders. Look out for data on ticks, variable spreads, and slippage. More recent data is better. You can also check myfxbook.com, a third-party site that ranks forex bots based on user comments.
You can also do backtesting, a process of looking at past performance using historical data. It will tell you if the forex robot can deliver profits using data from the past. It is not 100% accurate, but it will indicate how good the program is. With backtesting, you can also identify the specific currency pairs where the bot performs best. Is it working on the major currencies? Or the minor ones? Or maybe a combination of both using exotic pairs?
- Your trading strategy. As we have discussed, forex trading bots work on a pre-programmed set of criteria. It cannot make trading decisions that are not part of the codes in the system. Some bots work best for scalpers, trading many times per day and targeting small profits per trade. The goal of scalping is to have significant profits when you combine all the small profits per trade. Others work best with a forex hedging bot that specializes in using hedging strategies. It is the buying and selling of currency pairs at the same time by looking at market trends. Be careful, though, when using this type of bot since hedging is not accepted everywhere. Some regulators do not allow it. And still, some brokers will not allow you to hedge currencies on their trading platform. If you get caught using this in restricted areas, you will get punished. And could face jail time or pay penalties.
What is the best forex trading robot?
Now you know what to look for in a forex trading robot. Let us consider next the top bots available today.
- Odin Forex Robot. It is one of the most popular forex robots available today. Traders have used it in more than $1 million transactions this 2021. It uses a grid trading strategy that plots the prices of currencies on a chart. In this process, it determines the best entry and exit levels. The automation feature is also complete from beginning to end. No need to watch the trend as the Odin bot will do it for you. It will open, manage, and close the trading position upon reaching the best point.
Odin bot is for all types of traders. Beginners to advanced traders can use it with ease. It will only take 5 minutes or less to set up the system. Specific to newbies, this robot will allow you to trade immediately. There is no need for training or lessons on forex. All the grids and strategies are in the system. It is still best to study the basics of forex trading, but you can do this while you are trading simultaneously. There is no need to wait for months to finish your education program before trading. In addition, Odin works round-the-clock. So, if you choose to open your trading overnight, you can sleep with peace of mind as it got you covered.
This bot also works on over twenty commonly used forex pairs. So, if you are a scalper, it is a helpful program to use. Also, if you want to diversify your portfolio to other currencies, Odin can help you without the need to log out of the system. Doing this will allow you to manage the risks by not putting all investments into one currency pair. Odin will also work regardless of your budget if it reaches the limit set by your broker. It can be a micro, mini, or premiere account. So long as you can trade in a MetaTrader 4 platform, this bot will do the job well.
Lastly, Odin has a broker shield that gives added protection to its users. It works by protecting your trade information with a high level of security. So, other brokers will not be able to see your trades, observe your trading behavior, or get personal data from your account. If this is not enough to convince you to get the Odin forex robot today, it now offers additional discounts of up to 35%. That is as high as $70 savings. Check out their website for the latest deals and to get more information.
- Wallstreet Forex Robot. It is one of the oldest and most reliable forex trading bots available. It delivered profits of over 200% for its clients in the more than ten years of market presence. And this verified result is available from reputable sources such as Myfxbook.com. The Wallstreet forex trading bot is from the teamwork of professional traders and a group of software engineers with more than thirty years of experience in forex trading.
The system developed for the Wallstreet bot is easy to use. It only takes ten minutes to start trading. It includes download time, setup, and actual trading. How does it work? It uses a low-risk scalping strategy with short to medium-term positions that deliver profits. It is the best trading method used by developers for more than three decades now. But this does not mean that the bot will open and close trades with just one to two pips. It is a spread that is too low and ignored by serious traders. The pip levels used by the system are ten to fifteen pips, which brings substantial profits when achieved repeatedly and consistently. So, you can say that the scalping strategy used by the Wallstreet bot is non-aggressive.
Also, the Wallstreet bot includes a script to protect against high-risk trading activities. It calculates the risk percentage per trading deal and stops a trade that will likely result in a loss. By using a defensive stop-loss system, your account gets protected from being zero. Or from getting a negative balance. In addition, it stops further losses on a trading position that usual traders keep, hoping that it will recover soon. This scenario is the sure way to increase monetary losses. A situation that the Wallstreet bot will avoid at all costs.
This system works with a variety of trading platforms. If you use the MetaTrader 4, MetaTrader 5, or the cTrader, then using the Wallstreet bot will not be a problem. You will also receive email and mobile phone alerts so you can trade on the go. You can also check how the bot is performing anytime and anywhere. If you encounter any problem, there is 24/7 support that you can contact. It assures you as a valuable customer and trading partner. To add more spice, the developer is offering a 60-days money-back guarantee. If you are not happy with the performance of the Wallstreet forex trading bot, just send them an email to request a refund. It is a no-questions-asked program that gives a hassle-free experience.
Finally, the Wallstreet bot has a brokerage spy module built into the system. It helps to protect your money and your identity from brokers that use illegal trading practices. Some of the activities that this unique feature looks out for are high negative slippage, high spreads, and delayed order execution.
- 1000pip Climber System. It is a forex trading robot developed by Bob James, a forex trader for more than a decade. He made a name in trading as a broker in one of the financial institutions in London. The 1000pip bot uses a program that is based entirely on established forex trading rules. It scans the market and looks for high potential price movements. It uses a three-way notification model to keep you updated: visually, audibly, and electronically. Once it detects a winning position, it will send you a message on your PC, ring an alarm, and send you an email. This message includes details such as the direction of the market trend, entry price, stop loss, and take profit target. You can also activate push notifications through the MetaTrader 4 platform so you can check the trades instantly.
It is a simple program to install. And it works on the MetaTrader 4, the most popular platform in the world for forex trading. This bot is easy to use. Even newbies with zero trading knowledge can start trading in minutes. Every purchase comes with a video that explains the setup process every step of the way. It also has a free manual for beginners that explains all the information on forex trading. In addition, it has detailed instructions on using the 1000pip Climber robot with the MetaTrader 4. And how you can benefit from this bot to achieve your financial goals.
The 1000pip bot achieved 20,000 pips in the past three years alone. This verified result is on Myfxbook.com, a credible third-party review website. It currently works on six major currency pairs and produces short and long-term outlooks for each pairing. The signals are delivered every 15 minutes, one hour, or four hours. These options make it easier to look at trends and market value movements that make trading decisions more precise.
The bot is available through a one-time payment program. It will give you access to the 1000pip Climber bot for a lifetime already. All software updates will be free for current clients. In addition, there is a promotion that offers 65% off on its lifetime licensing fee. A good offer that any new or advanced trader should consider. But hurry since this promotion ends in a few days. It might not be offered again in the future.
What is unique with the 1000pip Climber bot is that it will not place the trade for you. It will do everything. From currency value trending, sending entry and exit signals, and recommending stop-loss levels. But it will not perform the actual buying and selling of currency pairs. The human trader has to decide after considering all the available data from the system. It is not a bad thing since you are putting your hard-earned money on the line. Also, bots are not fail-proof and cannot predict market movements based on news and other economic indicators. You, as the trader, keep control of your trading activities. Think of it as a king making decisions for his subjects, but only after consulting with wise counselors.
- Forex Trendy. It is a forex trading bot with the highest coverage of currency pairs designed to find the best trend for your trading needs. It looks at 34 currency pairs on all time frames which are unmatched by any bot service. Most forex trading robots only look at the major currencies: the USD, EURO, JPY, GBP, and AUD. The reality is these currencies are stable and have low spreads. The more exciting trends are happening with the minor currencies and even the exotic pairs. And you lose trading opportunities every time. Forex Trendy bot presents data from minutes to monthly. With a simple click, you can analyze many charts every second. It can spot any potential breakouts in any of the currency pairs, giving you the first-mover advantage.
Forex Trendy bot is a browser-based system. It means that there is no CD or downloadable link to install. It uses the most advanced computers in a global server in the USA. If you are worried about a virus or spam wares that come with programs downloaded on the internet, you can have peace of mind with the Forex Trendy bot. Aside from the user-friendly design, you get notifications through email or audible alerts straight from your computer. The charts and trends are also fully customizable. You can choose any currency pairs and deselect those that you don’t want to use in trading. Also, you can select specific timeframes where you want the trades to happen. It helps you make decisions with a higher success rate since you analyzed more data sets.
It is also available on more trading platforms such as the MetaTrader, NinjaTrader, and TradeStation. The subscription gets paid quarterly or once every three months. To make the deal sweeter, you will receive for free the resource ‘Understanding the Myths of Market Trends and Patterns.’ It is a 30-page eBook with many real examples of how the Forex Trendy robot can help to get you more profitable trades. Also, 60-days money-back guarantee program is available. It proves that the developers trust the product to deliver on its promises.
The only downside with the Forex Trendy bot is that there are no results on credible third-party sites like Myfxbook.com. Even testimonials and positive reviews are not on their official website. So, there is no way of getting actual user feedback. Or at least an indication that it works. At least not currently. Hopefully, as more and more people use this bot service, the reviews will start to come in.
Are forex trading bots legal?
Yes. There are currently no laws or regulations that limit the use of robots in forex trading. But it does not mean that all forex trading bots are legit. Some developers and sellers use robots to scam traders of their money. Others offer free trading bots only to steal your credit card details and other personal information.
Are forex trading bots profitable?
Some traders make a profit by using forex trading bots. But this is not guaranteed since forex trading is risky. Only one out of three traders will get profit. While a forex trading bot can help achieve profitability, it is only a part of the winning formula. You need to have the skills, discipline, and substantial capital to increase your chances of getting profits from trading.
On the other hand, developers and sellers can have large profits in selling bots. Some bots are scams that have no investment in intellectual property. The sellers will get 100% profit for selling these to unsuspecting traders. Others have simple programs that get sold for hundreds of dollars. These are also profitable schemes.
What is the best forex trading bot?
Wallstreet forex robot is the best forex trading bot today. It has built its reputation for more than ten years and has a verified and positive track record of delivering profitable trades. Also, it comes from professional traders with over 30 years of experience in forex. So, you can be sure that the principles used in the program are based on facts and reflect real-market conditions.
Are forex bots worth it?
If you have extra money to spare, you can consider buying one of the legit forex trading bots. But if you are a retail trader that has little capital, it is better to invest your money in the actual forex trading activity where you have a chance to get profits. Forex trading bots are expenses that are not necessary for forex trading.