Forex Automated Trading – How to Choose the Best Robots?
Forex trading can be very time-consuming and complicated. There are a lot of things traders have to do: deciding which pairs to trade, what indicators to use, analyzing the market data, and so on.
In many cases, some traders simply do not have enough time to do all this. It is a very common occurrence in the Forex trading market to use different types of robots for market analysis, as well as trading.
Automated Forex trading envisages using algorithmic trading. These algorithms are based on market signals, aimed at supporting traders to decide whether to buy or sell the asset. Automated software in Forex also takes away the psychological factor of trading, which can have a huge influence on your final profits.
Below, we have listed some of the best Forex trading robots that you can use in 2020-2021. These robots are very well-tested and offer traders the opportunity to get the most out of trading. Check out our list and see which one fits your needs the best.
The Best Forex robot 2021-2022.
Finding the best trading robot that fits your needs is not easy. We did very comprehensive research and analysis of the available Forex trading robots and have managed to find the best ones available in the market.
Check out our list below and find the best available Forex trading robot software in the market that fits your needs best.
Best Forex Robots 2020.
Forex Trading Bots – How Do They Work?
Forex trading robots are automated trading programs, that use different types of algorithms for trading purposes.
Trading with robots is based on a set of different types of market signals and algorithms and is able to analyze the trading market as well as buy and sell currency pairs. In most cases, Forex trading robots are fully automated and integrated with online Forex brokers and trading platforms.
By using a trading robot, market participants are able to save a lot of time and effort. Forex trading is associated with very heavy market analysis, which can be quite hard for traders. There always is some type of limit that people have when it comes to analyzing a large chunk of data.
However, in terms of automated trading, there are no such limitations. Forex trading robots are able to analyze the market data in a matter of minutes, providing traders with accurate information.
In most cases, robot trading Forex software is directly applied to the Forex trading charts. Here, the robot uses the historical data of the market to determine the possible direction prices could take.
You can also change the settings of the trading robots according to your preferences. You can set market entry and exit points, which will help you always follow your trading plan without making any unnecessary mistakes.
Forex EAs – Best Ways to Use Them.
When discussing automated trading Forex, it is very important to talk about the Forex trading Expert Advisors. Simply known as EAs, these are types of automated trading systems that are primarily available on MetaTrader trading platforms, such as MetaTrader 4 and MetaTrader 5.
Simply put, EAs are programming scripts that can automatically open trade positions without any human intervention. EAs are capable of analyzing trading patterns and can close positions automatically once desired market conditions are met.
EAs have many uses in the market, they can also be used for strategy testing processes. The main reason behind using EAs is to make trading a lot easier venture, ensuring that everything is done just as it should be.
While looking for the best Forex auto trading robot, many traders decide to go with EAs. There are numerous different types of Expert Advisors available in the market. This ensures that traders can find ones that fit their trading needs the best.
In most cases, Expert Advisors are used with MetaTrader 4 and MetaTrader 5 trading platforms. Although EAs are mostly used for Forex trading, they can also be used for other assets as well.
EAs give traders the opportunity to define the parameters for their positions. This includes open and close prices. Once you come up with a trading plan, you can provide the details to your EA, which will strictly follow your trading guidelines for the best outcome.
Different Types of Forex Trading Robots.
There are many different types of Forex robots available in the market. There are some that are created for specific strategies and timeframes, while there are others that simply help any type of trader for market analysis.
Trading bots, as well as expert advisors, can be divided into two major types: custom-made and bought trading bots. Custom-made trading robots are created by traders themselves and they match the individual trading style of investors perfectly, while bought robots might not have much interest just as well.
But, these two types of robots come with their advantages and disadvantages. Let’s discuss both of them below and which type of automated Forex trading robot you should be using.
Custom-made Forex Bots.
Custom-designed trading systems for automated trading are extremely popular in the marketplace. There are a variety of reasons behind this, and each trader will give you a different explanation of the motives behind their choice.
The main benefit of a custom-designed Forex trading bot is that it can be customized to meet the needs of traders. Another benefit is that it’s easy to design your own system. Furthermore, you may even offer it for sale and earn a profit.
Apart from the fact that it’s specifically tailored to your style of trading and requirements, It is also practically free. It is that only if you can code, of course. However, even if you aren’t a pro coder you should still be able to locate the specific guides online on how to create FX trading EA or automated robot on your own.
The fact that you can create an electronic trading program of your own is a fantastic thing. But, that’s not the only benefit. There are many other benefits. For instance, if you have created an automated trading system that is effective, there are lots of individuals who would like to purchase automated trading systems on the market.
However, there are some disadvantages of this as well. For instance, creating a Forex autopilot trading robot of your own can take away a lot of your precious time, which might not be the best thing to do when trading Forex.
Bought Forex Trading Robot.
Making the purchase of an automated trading program designed by professionals is a choice that a lot of traders make each day. Among many reasons to use a bought trading system is that there are many of them available online and you can easily find one that fits your needs the best.
The primary and one benefit of using a purchased automated trading software is that in the majority of cases it can save you lots of time. The process of creating the system yourself can be extremely time-consuming that requires you to research and try out the software for your own trading ventures.
On the other hand, the Forex automated trading bot that you paid for is in most cases very well-tested and is ready to use right away.
If you are looking to purchase an automated trading system, it is likely to choose one developed by experts in the market. These are not just people who are skilled in trading in the Forex market, they are professionals in the field of coding as well.
It is only natural that the trading system developed by experienced developers is more refined and polished in comparison to the other options you discover on the market. But, at the end of the day, the final decision is yours to make.
If you believe that you have enough skills to code a robot of your own, go ahead and do it. But, if you want to simply download something and start trading, buying a trading robot might be a better choice for you.
Forex robot price vary in the market and can be anything from a few dozens of dollars to a few hundreds of dollars.
Forex Trading Automation – Psychological Factors.
There are many reasons why someone would want to use automated trading programs. One of the most common reasons for this is trading psychology.
Whenever you are trading Forex, no matter whether you are making profits or you are losing money, there is a great chance that your decisions will be influenced by your emotions.
Sometimes, it is greed that makes traders want to make more money, at other times, it is fear of losing. Both greed and fear can end up costing traders a lot of money. On the other hand, there are trading robots that are not affected by emotions.
When using a Forex auto trading robot, you are not trading on your own. Thus, there are no emotional decisions and no panicking. If you find it hard to control your emotions, then Forex trading robots are perfect for you.
What is a Good Forex Bot?
Now that you have decided that you want to use a Forex trading robot, it is time to talk about what makes a certain Forex bot better than the others. There actually are quite a few things that you can keep in mind when looking for a bot.
First of all, remember that not every bot available in the market is equally good. There are some Forex robots that work perfectly for some traders, while for others they simply are not good.
The reason for this is that not every bot can work in every market condition. In most cases, robots are created to trade certain assets with a specific strategy. For example, you can’t trade stocks successfully long-term using a Forex trading bot created for scalping strategy.
So, the first thing to do when looking for the best Forex robots 2021-2022 is to know what type of trader you are.
After this, you can focus on the quality of bots. One of the best things that can be a sign that a robot is actually profitable is backtesting. This is an activity when a certain trading bot, or a strategy, is applied to different market conditions.
This way, it can be seen how the robot reacts to the market and how much it is actually able to create profits for traders. In most cases, a good Forex trading robot is backtested for several months, or even years.
You can also backtest a robot on your own using both MetaTrader 4 and MetaTrader 5 trading platforms.
Pros & Cons of Forex Trading Robots.
Much like anything else in the Forex trading market, there are two sides to Forex trading robots. While it is true that they can be very helpful for Forex traders, there can also be some disadvantages associated with them.
Below, we will discuss the major advantages and disadvantages of the best Forex robots so that you can better decide whether you should be trading with bots or on your own.
Advantages of Forex Robots.
As we have already mentioned, one of the biggest advantages of using Forex trading bots is that it can ensure that there are no emotions involved in trading activities. As a result, you can be sure that your plan is followed strictly.
Another great advantage of Forex robots is that even in volatile markets, it is able to perform orders without any issues. Robots are also known for high levels of consistency, providing traders with stable profits. While they can’t guarantee a 100 percent success rate, they are still very helpful.
Another huge advantage of Forex robots is that they improve the order entry speed quite a lot. Thanks to this, you can be sure that you do not miss any opportunities in the market.
In addition, an auto trading robot can analyze markets round the clock. This means that even when you are asleep, the robot continues looking for the best trading opportunities in the market and even keep making profits for you.
This also lets you go on with your day, keep working, or resting, while the trading bot works for you.
Disadvantages of Forex Robots.
While Forex trading robots do come with numerous advantages and benefits, it should come as a surprise that there also are many disadvantages associated with Forex bot trading.
One of the biggest disadvantages of using Forex trading robots is that things can go wrong. Although it happens rarely, there is a chance for the bot to suddenly stop working as it should.
This can lead to unexpected losses for traders. Another thing is that it still requires some type of monitoring from traders. Because there are some issues that can appear while the robot trades for you, such as internet connection issues, you should have some type of monitoring to make sure that nothing goes wrong.
Another disadvantage is that it is not easy to find a Forex robot trading software that fits your needs the best. For example, you might be trading a certain currency pair that the robot can’t trade. In this case, you might have to create a robot of your own, which is not as easy as it sounds.
So, at the end of the day, as much as Forex trading robots are popular, there are some drawbacks as well. It is very important for Forex traders to understand all the different sides of the automated trading markets and only use robots when they are sure about their safety and effectiveness.
Final Words on Forex Robots.
Using an automated trading robot in Forex is a very popular activity. Traders around the world are using Forex robots to take advantage of even the smallest price movements in the market and it helps them analyze the market to every small detail.
Forex trading robots have changed and developed over the years and they have become more trustworthy than ever before.
However, as much as Forex trading bots can be a great help for FX traders, there still are some disadvantages associated with them. It is very important for Forex traders around the world to make sure that they are using well-tested and reputable trading robots in order to stay safe while using the best Forex trading robot 2020.
FAQs on Forex Auto Trader.
Do Forex robots really work?
Yes, Forex trading robots really work. While there are no guarantees that a Forex trading robot will make huge profits for you, they are certainly able to trade Forex successfully for traders. There are numerous robots available in the market and all of them work in different ways.
For example, some trading robots are used for market analysis only, while others are able to analyze the market as well as trade currency pairs for you. A Forex robot trader is able to continue analyzing the market even when you are asleep, which makes them very helpful for Forex traders.
Are Forex robots legal?
Yes, using Forex trading automated systems is legal. If you’re able to trade Forex then you’re likely to be able to utilize automated trading systems with no problems. All you have to do is determine which bot suits your requirements the best.
Then, you can install the bot on your platform for trading or design one yourself in case you are unable to find an ideal solution to start trading. Robot Forex trading is absolutely legal and you should not be worried about it.
What is a Forex EA?
Forex EA stands for Expert Advisor. It is a tool that is used in the Forex trading market to automate trades. It is mostly used on MetaTrader 4 and MetaTrader 5 trading platforms. There are numerous types of EAs available in the market and you can download a pre-made one or create your own.
When it comes to choosing the best automated Forex trading software 2021-2022, Forex trading EAs should not be forgotten.
Is it better to buy an FX robot or create your own?
While some traders prefer to use bought Forex robots, there are others who prefer to create their own. Although the bought automatic trading system is likely to be more advanced and well-designed, it could be quite costly.
However the process of creating a trading platform at your own expense can be completely free but it may take months, or years, to build a solid trading system. At the end of the day, it depends completely on a trader. For some, it is better to find the best auto trader Forex online, while others prefer to create one tailored to their own individual needs.