Due to its nature, forex trading is a very risky business. It's difficult to make money in forex trading. That's where forex bots come into play. If you want to know how forex bots work and whether you should subscribe for one or not, read this article to enrich yourself about forex trading bot.
Forex is one of the biggest and most popular financial markets in the world in terms of daily transactions. Popularity of forex is increasing day by day due to its easy access and doesn't require big capital to start with. Though it's easy to access the forex market, it's not easy to make money. One needs a good understanding of the market to make consistent money. Due to this forex trading bot is getting popular with traders. Most bots support MT4 trading platform.
Forex bot utilizes an algorithm to find rewarding trades. You can normally set them to trade immediately on autopilot (within concurred criteria) or enter a trade manually.
To become an efficient trader, you will require to stay up to date with movements of the currency markets, world economics and news-- in addition to using historical data understanding and information to anticipate when the best time to take a trade and get in will be.
Utilizing a forex bot automates this and takes away the emotional predisposition out of trading. A few of the best bots run with trade settings that can be complex or as basic as required, and take overall control of the trading process, giving you a passive earnings possibility.
With forex bots, you do not need to have comprehensive understanding and experience of trading-- a lot of the bots are ready to utilize after setting up and offer everything from standard trading performance to fully programmable settings-- so even the most knowledgeable trader can take advantage of the automation involved. Though it is not that green it may seem with trading bot.
In this article on AtoZ Markets, we will discuss the advantages and disadvantages of forex trading bots and review some of the popular forex trading bots available in the market.
What is a Forex Bot?
A forex trading bot is an informal term for automated trading that assists to figure out whether to sell a currency or buy a currency pair at an offered point in a given time. All forex trading bots are usually automated and connected with online forex brokers.
Forex bots are automated software applications that produce trading signals. The majority of these bots are developed with MetaTrader, utilizing the MetaQuotes Language (MQL), which lets traders produce trading signals or place orders, and manage trades. Forex (FX) bots are created to eliminate traders' psychological barriers while trading.
Forex bots keep an eye on the forex market. They are made to do technical analysis like upward or downward breakouts, retrenchment, reversals, and momentum that offer trading opportunities. When a pattern is found, forex bots will offer or trigger a buy order to enter a position or take an exit from a trade.
Forex bot is automated trading systems, but the main distinction is that bots trade instantly on your behalf. On the other hand, in trading with signals, it depends on you to decide which signals to trade on and which to overlook, forex bots will trade on all signals they identify.
Advantages and Disadvantages of a Forex Bot?
√ Forex bots can do quick market analysis and order execution.
√ It can help you to remove your emotional and psychological barriers that lead to bad trading decisions.
√ You can do backtesting to find out the actual results.
√ With the help of forex trading bots, you can trade on multiple currency pairs even in multiple accounts.
√ A bot never can get exhausted like we can be watching charts or sitting before a screen. A bot stays active 24/7.
√ Usually a bot works for a shorter period of time. It doesn't give long term benefits as markets keep changing over time. It usually works on trending markets like uptrend or downtrend markets. In the sideways or consolidated market, usually the forex bot doesn't work.
√ Bots could be risky if you don't know very well how the pre-defined strategies in the bot work.
√ Some bots can be very expensive and complex to understand.
√ The bots require you to be connected with the internet 24/7.
√ The bots may not work or execute wrong trades due to server glitches.
√ You may end up buying poor performing robots or a scam product.
Ways to Avoid a Scam Product
The Forex market is the most volatile financial market. There is no thing like sure profit. Even most Intelligent Bot can fail at times. Do your research before choosing any bots.
Stay away from any robot that promises you an unrealistic profit margin but can't show you real time performance. Usually it's a scam if their claim is too good to believe. Also read what actual users are reviewing about the product.
Apart from real user reviews, check out for real usages on brokers. You can check verified accounts on myfxbook website to know the real performance.
By doing backtesting, you can see how the bot is working. In what type of markets it is doing good. It will show you the weakness and strength of the bot. If you don't know how to do backtesting or evaluate the backtesting results, you should stay away from forex trading bots.
Information on this article is for educational purposes. Remember forex trading is one of the riskiest jobs in the world due to its leverage and volatility, AtoZ Markets is no way responsible by using any info or product we talk about in this article.
Things to Remember When Selecting Forex Trading Bot
Before choosing a forex trading bot or automated trading system, you need to consider a few things to get the right one.
Low drawdown rate is a good quality of a bot. While researching bots, remember to look out for this aspect.
Any good bots are well tested on different types of account considering spreads and slippages. All these test data should be public.
Be careful about fake reviews. Usually in fake reviews, you will see unnecessary praises. Also read bad reviews to understand what problems users are facing.
First use the bots on a demo account to understand how it works. Once you understand fully and satisfied with the results, you can try on live accounts. Though demo trading may not give you 100% understanding but you will get a good idea about the product.
You also need to supervise the bots so that you can take action for system failure, internet connection issues. You can lose all your money if you run it and leave it. You may need to intervene to avoid unwanted results.
Remember that nothing can give you 100% guarantee to make profit in forex trading. Check the product's money back policy before making a purchase.
Some of the popular forex trading robots are discussed below.
1. Forex Fury
Forex Fury is one of the most popular forex trading bots in the market. They claim a 93% success rate. The bot allows a maximum of 7 trades at a time. It is a kind of scalping bot. It doesn't hold the trade for long.
They have myfxbook verified account with 20% drawdown. It's MT4/MT5 compatible. It's been in the market for 5 years+. Backtesting results of 15 years is 466,725% gain. Everyday more than 2400 people use Forex Fury. Every year they make necessary updates of the product. They have low, medium and high risk strategies. The bot is very easy to use. Before buying, please do your own research as well.
They have two buy options. One is a gold account, another is a diamond account. The price for Gold Subscription is $229.99. It gives you 1 account licence with lifetime membership. The subscription also comes with unlimited demo accounts and free updates. The price for the Diamond subscription is $439.99. It gives you lifetime membership with 2 account licences. It also comes with lifetime free updates.
2. 1000pip Climber System
The 1000pip Climber forex system provides an amazing combination of an extremely sophisticated trading algorithm, in an extremely user-friendly program.
The performance claimed is impressive. What makes this robot stand out is the fact that its performance has been independently confirmed by MyFXBook. This adds a level of assurance in the accuracy that the algorithms are able to deliver.
Like many other bots, the complexity is contained within the robot and there are hardly any options to alter. The interface has been made simple and clear so that even the most novice users would be able to navigate it easily.
This bot is an ideal choice for those who are looking for an efficient bot that is easy to install and operate. If you sign up today, you'll be able to benefit from the flash sale of 67% currently on sale. Their original price is $299. But the current flash sale price is only $97 with lifetime free updates.
3. Forex Steam 10
It is another popular forex trading bot. Forex Steam 10 works completely automated. You can get the bot downloaded and allow it to trade right out of the box. If you're more knowledgeable in the world of forex trading, you are able to easily set up and tweak the robot to trade under your specific circumstances. This lets you keep a bit of control, yet utilize your forex bot only when you're required to.
The Forex Steam bot seems to increase the number of accounts (6000+ clients) in a steady manner and seems to be highly reliable and reliable. But when it is about forex trading, there aren't any guarantees. However, being able to count on a loyal client base is a positive sign of any type of company.
With $117.99, you will get 4 licences with lifetime validity. It also comes with lifetime free updates.
4. FX Master Bot
Fx Master Bot is another popular trading bot in our list. It is an online platform which provides web based automated trading. It means you don't need to download or install any software. In fact all operations can be performed using FX Master Bot. FX Master Bot platform. As for how it operates the core algorithm will search thousands of forex markets during the daytime trading.
If the algorithm spots an opportunity for trades, it would notify you immediately. FX Master Bot allows you to take action on these signals on your own. This means that you can choose to take automatic entry and exit orders each when an alert comes to the market. Alongside 17 major currencies the bot also includes 5 cryptocurrency.
When you make the minimum deposit requirement that is $250, then the system gets activated. It doesn't have any subscription fees. They take 2% commission on the profit you make in their system. Be aware about scam. Look review before buying.
5. Forex Astrobot
This forex trading robot is 100% automated. It claims that traders can earn gains as high as $16,000 per month. Forex Astrobot was created by an internationally renowned forex trader named Rita Lasker.
It is an MT4 forex robot that permits you to trade using the H1, M30 and M15 time frames and covers all currencies pairs.You will be informed of any potential trading prospects that have been identified through three options which include: MT4 notification popup, mobile SMS or an email.
This bot also allows you to do money management. You modify your lot size according to your trading policy or market situation. The bot allows trailing stops. It gives a 30 days money back guarantee. The price of this bot is $99 one time fee.
6. GPS Forex Robot
GPS Forex Robot came into the market in 2017. The bot is based on a new, innovative technology. It monitors the market continuously in the background and has 12 trading styles and strategies. You can choose any of the trading style and strategies that suit you the best.
GPS Forex Robot is ready to go right after installation. This bot takes automatic updates. You don't need to manually update or pay for the updates. The robot works on EURUSD, EURGBP, GBPUSD, USDCHF.
It doesn't have any monthly or yearly subscription fee. You have to pay a one time fee of $149 to get this robot.
7. Forex Gump
Another popular forex bot is Forex Gump EA. It has a unique strategy that works on 9 currency pairs namely AUDUSD, EURCHF, EURGBP, EURJPY, EURUSD, GBPUSD, USDCAD, USDCHF and USDJPY. It allows you to trade everyday on M1 time frame. They offer you 3 different settings (Low, Medium and High). You can set your maximum loss limit. You will not lose more than that even if the system got crashed.
They have two subscription options. One is for â‚¬199 with one live and one demo account. They give 24/7 support and a 30 day money back guarantee. Second subscription price is for â‚¬399 with 3 live accounts and unlimited demo account. It also gives a 30 days money back guarantee. Both the subscription gives free lifetime updates.
8. Forex Trendy
Forex Trendy is another popular forex trading Bot. It supports 34 currency pairs. The bot scans for trades in all time frames.
It supports MetaTrader, NinjaTrader and Trade Station as well.
This bot doesn't place orders automatically. It just suggests when to buy or sell. They have a quarterly fee of $37. You can cancel any time you want. It also gives a 60 day money back guarantee.
9. Forex Diamond
Forex Diamond has verified Myfxbook account. It has 40+ loss recovery factors. It supports both MT4 and MT5. It has 3 different trading systems in one EA. It claims to be protected from high spreads and slippages. It gives you auto updates with a 60 day money back guarantee. The bot would cost you $237 one time fee. It allows you one real account with 4 supported currency pairs. You can run it on both Mac OS and Windows.
10. Wall Street Forex Robot 3.0
It is another popular forex bot with 10 years proven results. This forex trading bot is programmed in a way so that it can adapt to the changing market situation. They have 20 years of backtest results.
It has 3 subscription packages. Basic Starter Pack. The price of this pack is $267. It will give you 3 EAs. It will allow you one live account with unlimited demo accounts. Premium Most Popular Pack. It costs $357. It will give you 5 EAs (1 Live account per EA). And the third package is Ultimate Full Pack. It costs $397. It will allow you 10 live accounts. 2 accounts per EA. All the subscriptions give a 60 day money back guarantee.
We know that making money in the forex market is not an easy task. It requires you to have enough knowledge and skills. If you think you would make money by using a Forex trading bot, that's not completely true. Even to use a forex bot, you need to have a good understanding of the bot. We don't recommend any of our readers to use any forex bot without understanding the underlying risk associated with trading. The robots we mentioned may not be the best forex robots. Whether you trade automated or manual, you need good knowledge about trading.