Forex Robots use mathematical algorithms and market historical data to make automated trades. They follow technical analysis and include a lot of complexity. Regardless of complexities, forex robots have advantages and claim to provide profitable trading.
This blog post explains forex robots in full depth. It discusses the pros and cons of forex robots. It also answers the basic question asked by various users: “Do Forex Robots Really Work”?
What are Forex Robots?
Forex robot is special computer software that makes smart trading decisions by analyzing market conditions. It is programmed in a programming language (Python or MQL4) and based on numerous mathematical algorithms.
It sounds amazing to have someone to take care of trading. Users don’t have to take trading stress especially when the market is volatile. Some forex robots only provide trading signals while others act on behalf of traders. They are also known as Expert Advisors and have their drawbacks and advantages.
By using a Forex Robot, traders can make their lives easier. Robots automatically track market conditions and scan numerous charts to make decisions about trading.
How Do Forex Robots Work?
It takes countless hours to program a forex robot using the MQL4 programming language. Anyone can make a forex robot which various companies claim to provide Forex Robots. Most of these are scams and we are here for your rescue.
A well-programmed forex robot can analyze market signals and determine the best time to sell a pair of currency. Forex robots are fully automatic and they do not provide any guarantee for the short term. At the same time, they are profitable in long term. They help traders in making the best decision at the right time.
A forex robot can be used by installing it on an MT4 account. After installation, users enter the license key and leave the rest on the robot.
Do Forex Robots Work?
Different users have different answers to this question. Users who are able to make a profit claim forex robots are profitable. While others think differently.
It takes immense effort to make a trading robot. It considers various factors and historical trend data of the market to make decisions.
Forex robots require time to settle and analyze the market. Therefore, they are profitable in long term as with time they learn more about historical market data. You cannot make a profit without making a strategy.
Below is a performance chart of the Red Horse-Trading Robot:
It is evident from the performance of this robot that it continues to perform better and better in the long term. By checking the reviews of customers, it becomes clear that Red Horse is a profitable robot that has analyzed market conditions and made a good profit. Hence Forex robots work and give profit.
The best way to discover the legitimacy of a forex robot is through user reviews. A well-developed & profitable forex robot is always appreciated by the traders. Such traders understand the market condition and not always looking for a profit.
Some users explain in complete depth their experience of using a particular robot. Users should not always look for a profit as often the market is volatile. So, the responsibility of a forex robot is to mitigate the workload and make smart trading moves.
Advantages and Disadvantages:
Below listed are some of the pros of using a Forex Robot:
- Ability to analyze market data
- Low drawdown and high profit
- Money and risk management
- Fully Automated Trading
Some of the cons include:
- Profitable in long term only
- Controlled by expert traders
- Drawdown can go high depending on market condition
Tips to Identify Forex Robot Scams:
The forex market is highly competitive and open to scams. It is difficult to determine the legitimacy of a forex robot.
High demand and poor focus of traders on the customer feedback enable companies to scam more and more customers.
You can identify a Forex Scam if:
- Guarantee Double Profit – A forex robot is a scam if a company claims to provide double profit. No forex robot can provide 100% profit in a limited time. It is due to the market conditions that keep changing. There is no guarantee in automated trading.
- Company offers free robot – No one is going to spend countless hours on a robot and then hand you over for free. It is simply not possible. A quality product comes at a cost.
- Offering Cheap Robots – A capable forex robot for a lifetime costs at least $125. Anything in the range of $20 to $100 is a forex scam.
- Quick short term profit – Forex robots are programmed to analyze market data. Therefore, they need time to settle down and learn from previous trends to make the best choice.
Forex robots are automated and they use historical market data to make decisions. They do not always guarantee profit.
You must have adequate forex market knowledge to use a forex robot. You must be aware of market volatility and how it affects profit.
Forex robots are legitimate only if they keep the drawdown low and automatically close trades in case of volatility. Read customer reviews before purchasing a forex robot.
It was all about the forex robots as they can reduce the burden of traders and provide a profit somewhere between 10% to 35%.