Trading robots provide an automated means to forex trading strategies saving time for traders to analyze and execute positions manually. The inception in the fintech industry and software department has introduced many algorithms in the markets in recent years. With so many options available for traders, selecting the right ones cannot be very clear. Most of the expert advisors can go up to $100000 in price. Our article will cover these EAs and how investors can choose the right ones that suit their needs.
List of the best forex trading robots:
TechBerry has been offering social trading services since 2015. An average monthly gain of over 10% is generated by formulating a complex strategy based on its neural algorithm. Professional traders and subscribers have the opportunity to earn thousands of dollars from the platform. The former can choose to provide their trading data to TechBerry and make more than $500 each month, while the latter can subscribe to one of the multiple packages for automated copy trading.
|Trading strategy:||Advanced social trading|
|Price:||Starting from $19/year|
|Free trial:||14 days|
|Loss reimbursement:||Compensated by insurance|
2. FX Fortnite
FX Fortnite works on the MT 4 and 5 platforms and trades the EURCHF currency pair on the H1 chart. The algorithm requires a minimum deposit amount of $1000 and leverage of 1:100 on a trading account. The robot is fully automated and uses a hedge and trend trading methodology. Traders can customize the amount of risk they wish to take by customizing the settings. The developers are keen to answer and provide the support that is available 24/7. There are backtesting and live results available on the website to track performance.
|Money-back guarantee:||30 days|
3. Forex Flex EA
Forex Flex EA offers a trading community where all traders can gather and discuss the algorithm. The company is keen on keeping things transparent and shares multiple live trading records to verify its performance. The robot has multiple input settings such as drawdown stop loss and news filter that help it to avoid poor trading conditions. Traders can also turn on hedging if required and employ the algorithm on all currency pairs if needed.
|Brokers:||Hotforex and FXOpen|
4. Forex Robotron
Forex RObotron trades on EURAUD, EURCAD, EURCHF, EURGBP, and EURUSD at the 5 minute chart. According to the developer, it works only on the MT 4 platform and takes around 600 positions per year. It does not employ dangerous trading strategies such as grid martingale and arbitrage. The provider gives updates for a lifetime and a license for unlimited demo accounts for each package. There is a good amount of analysis available on the website about the system’s performance, and traders can easily see both live and backtesting results.
5. Forex Steam
Forex Steam has trailing stop and breakeven features to lock in the profits when the trade is positive. The company states that their system is being live on over 10000 trading accounts. The algorithm is fully automated and was put together by a team of developers who had over 25 years of experience in the market. It comes with a new step-by-step guide for traders. Traders can witness their results that are tracked manually on the website.
6. Forex Fury
Forex Fury can work with NFA and FIFO compatible brokers. It can also run on both MT 4 and 5 platforms. The robot is able to trade any instrument and uses multiple filters to avoid trading in poor market conditions. Traders can use it with a low, medium, or high-risk approach. The EA aims to grow the trading account by 10-20 % a month. It trades on a range when the market volatility is quite low and will only work for an hour daily on the least volatile currency pair.
7. Wallstreet Forex Robot
There are multiple algorithms available at the Wallstreet Forex Robot website, which can all be purchased together. The robots come with proper backtesting to prove their performance over the historical data and future. The algorithm can work on multiple currency pairs, detect high spreads, and has a built-in protection system against brokers. Traders can also enable email and mobile notifications and employ advanced money management techniques. 24/7 support is available to answer all of the inquiries.
What is a forex robot?
Forex robots are coded software that trades on the markets on auto mode or provides trading signals which investors can follow manually. These algorithms may be coded for specific software such as MT 4, MT 5, cTrader, etc. Traders then install it within the program and attach them onto charts to trade the currencies. Depending on the information, the expert advisor can trade for a short, long term, use a scalping approach, etc. There might be input settings that market participants could configure to change the output of a system. Developers test out EAs using the strategy tester that gives the best set file for a particular forex pair and time frame.
How to trade on the forex market?
Trading on the forex is becoming easier and easier as tons of available brokers offer the best market conditions. They provide trading accounts with the lowest spreads and minimum deposit so that each trader has access to currencies. After opening a portfolio on an exchange, investors speculate the assets based on their strategy and open respective buy or sell positions. Based on the conditions, the instrument may go high or low, resulting in a profit or a loss. Some traders choose to employ a robot to do all the hard work for them.
What are the pros and cons of using a forex robot?
The advantages of trading using a forex robot are as follows:
- Automation. Traders do not have to trade the markets manually as all the robots handle all the executions
- Psychology. As the robots are automated, they are not influenced by human emotions such as fear and greed. They trade the markets in the same way for all conditions.
- Profits. Trading robots allow traders to earn a passive income without moving a muscle.
- Diversity. There are tons of robots available in the market which trade with different styles. Traders can choose one according to their needs.
While the disadvantages are :
- Risk. Trading robots that use grid and martingale may expose your account to huge risk
- Scam. Most of the trading robots do not perform according to the promises made by their developers, which can expose users to fraud.
Why should forex EAs be backtested?
Backtesting a trading robot is extremely necessary as it gives an idea of its future performance. Traders can know how the algorithm will perform under certain market conditions. The drawdown value is significant in this regard as it helps understand the exposure on an account.
Backtesting can also tell how much profits can be made on a successive period and provide us information on the system’s strategy. Good backtesting can be achieved by using high-quality tick data obtained from reliable sources. This procedure will work similarly to trading in real market conditions and save time for traders in forward testing.
Do you need trading experience to use forex robots?
Most of the forex robots that work with full automation do not require any manual intervention from traders. No trading experience is necessary to operate these EAs. Some of the robots may require adjustments within the risk settings. The developers can provide traders with sufficient information that can help them set it up.
Algorithms that provide trading signals on the chart and work as indicators do require some basic knowledge of the markets from traders. There might be a user manual available at a trader’s disposal to help them get through the initial stages.
How much money do you need to start trading with a forex robot?
Capital requirement is mainly connected with the strategy of the EA. Some algorithms may only require $100 to trade, while others, such as grid and martingale robots, need as much as $10000. Traders should keep in mind that their returns will depend on the algorithm’s risk on each trade.
Criteria used to compare the best FX EAs
With so many options available in the financial marketplace, selecting the right algorithm for your needs can be challenging. There are, however, certain factors that traders should keep in their minds to help them sort out the best one. Let us discuss a few of these below.
Risk management tools employed
A good trading robot always has perfect risk management tools. It calculates the amount of money it is putting on the line before each execution. Auto lot is one of the notable features which allows a robot to determine the lot size based on the trading capital. It also helps determine the correct amount of relative drawdown during backtesting.
Relative and maximal drawdown are important terms that traders should understand. The first one refers to the initial drop in balance or equity, while the latter means the amount of drop that happens once the balance moves away from the first value.
The value of a drawdown should be kept at a minimal possible level and should not exceed a certain amount based on the risk level of the system.
Number of trades performed per day
The trading frequency of an algorithm can determine its success. Scalpers that trade frequently may gather up so much in costs that no profits are left at the end of the day. It is also necessary to look over EAs that hold trades for the long term as swaps are also deadly.
The execution speed of the EA is to be determined beforehand. High-frequency trading algorithms require special conditions with low latency and HFT brokers. If you try and use such robots on other exchanges, they will defiantly lose. Typically most expert advisors need an average broker with decent delay.
The risk-reward ratio means how much money the robot puts on the line to make certain bucks. A good risk-reward ratio stands anywhere from 1:1 to 1:5. Anything above this is a bonus. Algorithms with a low-profit factor require a high win rate which is sometimes hard to achieve depending on the strategy.
The algorithm should be price decently enough within reach of all investors. Many robots out there cost more than $10000 but do not perform for the designated asking dollars.
Number of currencies traded
The algorithm should trade a fixed number of currencies and only do so when the spreads are nominal. Most EAs come with a built-in spread filter and require attachment to a single chart for trading all the instruments.
Vendors transparency and reliability
The original developer of the product should share their whereabouts and trading experience with the community. This can help understand what their EAs might look like and how they will perform. A good programmer with a great CV and trading experience will certainly develop better products.
A money-back guarantee can help you save your cash if the algorithm proves to be useless. Some vendors only provide your bucks if you provide them with poor results on a live account. This is a poor practice as any EA requires testing on a demo account for a significant duration before being put on a live.
Live trading records for an extensive duration can help understand the performance of the EA. Results should be available on noted tracking websites.
How to avoid forex scams?
These are some of the most important things that you should consider before investing in any trading system. The list below will help you to make the perfect analysis wether a forex trading robot is a scam or not. Let us take a look at the kind of systems you should avoid in your trading.
Robots that increase position size
Martingale robots are easy to develop and sell off to traders. The developers of such algorithms never have trading results for an extensive duration as all their accounts reach margin calls before that. These types of systems can take your account into dust, so always be careful of them as you’ll find tons in the market.
Hold orders for long periods
Robots that hold orders for long periods are usually implementing a grid trading strategy. While this is less risky than martingale, the drawdowns can significantly increase when the market trends in one direction. It may also result in a margin call. Always look out for average trade duration in these cases.
Have huge SL or none at all
Algorithms that trade without stop loss provide an extremely unfavorable risk-reward ratio. They wait and wait for the market to return so they can close the position in a small profit. As there is a chance that the trend might not change, it adds a huge risk to your account.
Trade with high drawdown
Robots that have a high drawdown while trading can add to your mental stress. Seeing your account balance in a significant loss can be detrimental for trading. If there is a high drawdown, then it means that the system follows a poor strategy or has poor coding.
Come without money refund
Without any good money-back guarantee, it is possible to lose your cash when the system’s performance is not good enough. Only a few algorithms in the market offer a money-back guarantee, and if there is none available, it should raise some red flags.
Do not come with a free trial
Systems with good performance always offer a free trial to traders before purchase. This is to prove their worth in the market. Whenever an EA comes without trial services, it should mean that it is not working.
Trading robots are a great way to make a good passive income. However, traders should be cautious about the trading strategy and the drawdown on the account at all times. Always look out for verified trading records that can guide you on the performance of the system before purchasing one.