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Automated Forex Trading Guide

Doing forex automatically, with trading robots, could be an excellent solution for many traders, but one should not think that it is as simple as some say. We reveal everything you need to know.

Automatic Forex Trading is the boon of many traders who would like to make money immediately and easily in the forex market. Too bad that most of the time, an automatic trading system, also known as a forex robot, proves to be a chimaera, good only for accumulating stress and losing money without even having the opportunity to recover.

Mind you, I said “most of the time” because, depending on the case, an automatic trading system could bring its advantages and “have its whys”.

What is an Automated Forex Trading System

Let’s go in order and first give a definition of automatic forex trading.

We can say that an automated system is nothing more than software that opens and closes positions on its own based on market conditions and, obviously, on the indications given to it by the trader.

Basically, a trader tells the software:

► “Open a position if there is an intersection of moving averages”.

► “Open a long position if the stochastic falls below the value of 20”.

► “Enters the market short if the stochastic rises above 80”.

And so on.

Basically, the investor sets software rules which, as soon as market conditions arise (in our example, as soon as the stochastic falls below 20 or rises above 80), opens a position.

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How to Best Use Automated Forex

Far from the trader’s mind to think that a forex robot (or an automatic trading system) is the “Holy Grail” of Forex: if you want to buy such a program to launch it once and expect an automatic annuity month after month, we tell you to save that money and invest in a forex course or in buying a good  forex book .

If instead:

► You have the patience to “follow” the robot, to adjust the indications according to the changing market conditions.

► You have the ” psychological strength ” to disable it when the market is excessively volatile and you may perhaps run into false signals.

► There is the constancy to make backtests to always evaluate and test their correct functioning.

Then (and only then) the robot could be a good solution.

The Benefits of Forex Automatic Trading

Like everything, this also has its advantages, which we are going to list.

Speed

There is no doubt that a forex robot is fast. In the exact moment in which a market condition occurs, the software has already opened a position. The trader, on the other hand, may lose a few seconds to recognize a favourable market condition, take the mouse and click on the position to open it.

Discipline

It is perhaps the biggest advantage of a forex robot. Software is always disciplined in 100% of cases. A flesh and blood trader has emotions and, despite all the good indications of capital control and money management, they say that one should not let oneself be caught by emotions. Sometimes (unfortunately), it happens, and you risk losing. With a robot, this problem certainly does not occur.

Easier Tests

With a robot, you certainly have the possibility to test a given trading system more easily, even if complex. The robot is software and has truly incredible computing power.

Diversification

The key to success. Diversifying investments is essential to minimize risks. A human trader can focus, for good, on one or two currency pairs at a time (also because each currency pair responds differently to the market).

A robot, on the other hand, can safely keep the market of the euro, that of the pound sterling, gold and even the stock indices at the same time (but we could also increase) without any difficulty.

The Disadvantages of Forex Automatic Trading

Even an automated trading system has disadvantages, as is obvious.

Constant Control

It is true that a robot opens and closes positions on its own but still needs human control behind it to tell it what to do and what not to do, depending on market conditions. You cannot think of leaving an “adventure” trading software; otherwise, you will lose money (100%).

Technical Problems

In order to function, software needs a good computer and a good internet connection. If one of the two fails, there is a risk that the orders are not carried out as we would have liked.

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In the End, Does Automatic Trading Work?

As I have said before and as we have also said in the list of advantages, we can say that “yes”, a forex robot works if you know how to use it and if, of course, you choose a good robot.

Not all software is created equal because the programming team changes behind the creation of the same. In general, it is better to trust mainly those robots that have been on the market for the longest time (will they have had the opportunity to demonstrate something, or not?) And, above all, those with reviews by real users who have had the opportunity to use it previously.

FREE Automatic Trading, Are There Any Free Forex Robots?

No, there are none. Would you ever give away anything that could earn money without getting paid? Definitely not, so there is no way to find a free forex robot.

Obviously, we are talking about the best robots, those that have proven, over time, to be worth and to be able to earn money.

Then, perhaps, there may also be others of lesser quality that are made available for free without paying (or simply data on promotion for free for a limited period of time to make themselves known to the general public), but before entrusting these free robots with the management I would think carefully about my capital and look for independent reviews on the internet (I’m not excluding them a priori, mind you).

The Best Automated Forex Software

Drawing up a ranking of the best forex robots is certainly not an easy thing, also because you should try them all and, honestly, after finding an automatic software that can do its job well, I wouldn’t risk changing it to test another.

Despite this, we believe it is important to provide a ranking of the best forex robots on the market, and we have decided to get to work to do it.

We will update this page as soon as the ranking is ready. To be sure not to lose it, you can subscribe to our newsletter (it’s free, and we don’t send you unwanted emails, not even half).

Conclusion

Closing this complete discussion on forex robots to trade automatically we say that such a program could be a good investment to consider.

The conditional is a must because it depends a lot on which robot you buy, how you test it and how much you are behind it to optimize it based on market conditions (which always change).

Having said that, we invite you in the comments to share your personal experience on forex robots: have you tried one (or more than one)? Which? How did you find yourself?