Because of its name, forex trading robot, many novice traders think that its form is really similar to a robot. However, that idea is clearly wrong, this forex trading robot is software that can be programmed to perform automatic forex trading activities. This software will be very different from the manual trading devices that are generally used by traders.

This forex trading robot is also known as Expert Advisor or EA. With this EA, traders are facilitated because they do not have to continuously monitor forex market movements, including not having to look for opportunities manually. Here is a complete review so that you are more familiar with this one trading software.

How Forex Trading Robots Work

So, how does a trading robot work? In general, this robot can operate with the help of software, which has been connected to direct broker access. And so that the robot can run the specific rules that have been set, these rules are written using the programming language used by the platform.
 
With the existence of various choices of trading robots, you can find information and reviews that there are robots that have satisfactory performance with consistent win rates, and there are also those that are considered less satisfactory because of inconsistent win rates. Well, making a trading robot with a consistent win rate is not an easy job.
 
And of course the process of making it requires very expert and professional coding skills. Not only that, there are still trading strategies made by experienced traders who really understand the ins and outs of the world of forex trading. This strategy is usually also embedded in the trading robot program to help the robot produce truly satisfactory performance.
 
In addition, robots are also designed with high adaptability so that they can immediately change strategies based on the situation in the market. When creating a trading robot, there are several approaches that can be used by programmers. One of them is an arbitrage strategy, which is a strategy where the robot will monitor many markets at once and detect price differences for the same asset in different markets.

That way, the robot will be able to detect and execute transactions very quickly, and traders can also make a profit. Another approach that can be taken by the robot is the use of technical indicators as a basis. In this way, it means that forex robot programmers will have to work with experienced traders with proven formulas and strategies.
 
Through this cooperation and collaboration, the resulting trading robot is expected to have a consistently high win rate. This means that the robot will automatically place a buy order every time a golden cross occurs. While every time there is a dead cross pattern, the pn robot will automatically place a sell order or take profit.

What are the Types of Trading Robots?

The use of forex robots in trading transactions is actually no longer a strange thing. However, in its use, it turns out that there are various types of trading robots that you can find and are commonly used in the world. So, what are the types of forex trading robots? Here is a list and explanation.

Expert Advisor (EA).

This type of robot can be said to be the most common type of forex robot. So, it is not surprising that you have probably heard its name often. EA itself is a software that works automatically based on commands made by traders. Once installed, EA will manage trading based on a series of criteria that have been previously determined by the trader. And these criteria are made based on algorithms that have been programmed into the EA, as well as strategies created by traders.

Copy Trade.

Meanwhile, Copy Trade itself is a system that allows traders to copy (copy) trading carried out by other traders in the forex market. The purpose of this type of trading robot is so that the user trader can have the same position as the trader they are copying. When the robot copies another trader, the trader using this robot does not actually know the general picture of the strategy as a whole. Because as indicated by its name, Copy Trade is limited to copying trading steps to follow.

Multi-Account Manager (MAM).

By using MAM, professional traders will be able to manage multiple accounts at once through just one platform. Traders can still do it even though they are registered from various countries. That way, the order placement process can be done by traders faster, easier, and more efficiently. The reason is, traders will still be able to place orders in large quantities even so easily. Because, everything can be done in just a few clicks and just by using one platform.

Percentage Allocation Management Module (PAMM).

Meanwhile, PAMM is a forex trading system that is done using pooled money. This means that you as a trader will be able to allocate your money in the proportion you want to a qualified money manager or trader. Then, the money manager or trader will be able to manage several trading accounts that you have. Of course, the basis for this management is to make a profit.

How to Test Forex Trading Robots

You can test the performance of the robot software you use by doing backtesting. The method is to activate the simulation feature on the trading platform, namely Strategy tester. You can do this testing using a demo account. This backtesting process will use data and information on previous currency price movements.

  • Choosing a Strategy Tester

The first step to take is to select a Strategy tester. Make sure your demo trading account is active on the trading platform. Then install the forex trading robot software in the experts folder in the trading platform program you are using.

After that, you only need to select the Strategy tester on the trading platform by selecting the View menu, then selecting the Strategy tester button. Once it is active, you are ready to do backtesting with the next steps.

  • Choosing a Robot

After selecting the Strategy tester, the next step is to select the forex trading robot you want to test. Open the panel at the bottom of the trading platform you used earlier to select the trading robot software, then proceed to the next step.

  • Set Time Period

Determine the time frame or time period you want to test, by checking the Use Date column on the panel. This will open the date, month, and year that can be selected. Determine from when to when to use the recorded forex market data. It is better to choose a fairly long time span, at least one year, in order to detect trends and patterns with a wider scope and get more valid data.

  • Select Currency Pair

Next, select the currency pair to be included in the testing process, then check the time frame again, whether it is available in the database for robot backtesting. After the time frame and currency pair are correct, you can click the Download button to download the data.

  • Include Tick per Minute Data

Don't forget to also include 1 minute tick data or 1 minute/M1. The goal is to make the test results or backtesting more accurate. Also make sure there is enough storage space on your hard disk because this data will take up a lot of storage space.

After you get the downloaded price movement data, backtesting can be run by pressing the Start button on the panel. The program will be active after a while, depending on the time span you choose. The longer the time span, the longer the activation duration will be. For a year's data, it can take hours.

Once the backtesting process is complete, the results will be visible in the Graph or Result tab in the Strategy tester panel. When viewing the backtesting results, you must always remember that the performance displayed is past trading performance, depending on the time frame you applied earlier. If the data shows successful trading with large profits, it must be remembered that the results may not be the same if used now.

Advantages and Disadvantages of Forex Robots

Based on the explanation above, you may also be able to identify what are the advantages or benefits offered by forex trading robots. However, of course forex robots not only have advantages, but actually also still have disadvantages. So, what are the advantages and disadvantages of forex robots? Check out the list and explanation below.

Advantages of forex robots.

Can walk every day without rest (24/7). It can be said that this is one of the main advantages of trading robots. It's called a robot, so it's not surprising that forex robots are much less tired than humans. Forex robots can continue to operate and run at any time, even all day every day without needing a break.
Thus, robots will be able to monitor and observe market movements at all times.
So, robots will also be able to take action more quickly, which of course can help maximize your profit potential.

Can catch opportunities faster. The ability of trading robots to work every day all day also makes them able to identify and capture opportunities better. Thus, profitable opportunities will not be missed from your grasp because the robot will still be able to identify and utilize them even when you are doing other activities.

Can do multitasking. Even the best professional traders are at multitasking, there are still limits. However, this is not the case with forex robots, which can perform various actions automatically at one time. By utilizing trading robots, you will be able to do profit targets, entry and exit, and even stop-loss orders simultaneously. Not only that, forex robots can also observe various types of foreign currencies simultaneously even while conducting research.

Has no emotional aspect. Emotions are something that will definitely always be attached to humans. However, emotions are not uncommon for a trader to make certain decisions, including decisions that can make him lose. For example, trading just because he is carried away by hype, greed, and so on. However, as a program, of course, a trading robot does not have an emotional element. Thus, the signals sent by the forex robot can be said to be very objective signals and can help you make more logical trading decisions.

Has useful features that are constantly evolving. As time goes by and technology develops, forex robots also continue to improve. One of them is through the addition of various interesting and useful features that can improve their functionality and of course also follow market dynamics. Not only that, these features also continue to improve and develop. And of course in the future there will be more sophisticated features that can help boost the performance of trading robots to help optimize your profits as a trader.

Driving high quality trading performance. By following programming standards, the performance of forex robots can be measured clearly. In general, the performance of forex robots themselves is measured using the backtest method or the forward-testing method.

Disadvantages of forex robots.

Still requires regular supervision from traders. Although forex robots can run at any time, it doesn't mean you can just let them go, okay! Because actually forex robots still need to be monitored and supervised by traders. The goal is simple, namely to ensure that the forex robot used is still running and doing its job according to the settings made by the trader.

It costs money. Another disadvantage of trading robots is the cost or price which is quite expensive. Because, the price of forex robots themselves is not that cheap, especially if what you buy is a robot that has really proven its credibility and quality.

There are times when robots cannot adapt to certain market conditions. Unfortunately, there are some situations or market conditions that make it difficult for forex robots to adapt. One of the reasons is because forex robots are currently still designed to think linearly. In fact, there are situations where the market moves randomly and fluctuates, for example when there is a new news release that has a tremendous impact on the market.

It takes special skills to use robots optimally. Although trading robots are often marketed as an easy solution to forex trading for beginners, it is actually most recommended to use them if you already have enough experience in trading. The reason is related to the previous factor. Because there are moments when market conditions are different from usual, you as a trader will have to intervene directly in trading, even manually. In addition, you will also be required to have a sharp intuition in recognizing unfavorable market conditions, even when you are already using a trading robot.

Not all brokers allow forex robots. Apparently, there are still forex brokers who do not allow the use of trading robots. This is related to the capacity and performance of the broker's server, which can experience a decrease in performance if the broker's server is crammed and burdened by a long queue of orders made by robots. If not resolved, this can cause the broker's server to freeze or lag. Therefore, there are some brokers who prohibit the use of robots to avoid these risks.

Forex Trading Tips with Robots

Despite its shortcomings, it is undeniable that trading robots actually have more advantages. Therefore, it is not surprising that many traders use it. And because of that, forex robots have increased in popularity in recent years. However, you still have to be careful in using forex robots when trading, okay! Otherwise, the tool that should be able to help and provide benefits for you will actually cause losses for you. So that you don't lose when trading using trading robots, here are some tips that you can apply as follows.
  • First check the performance of the forex robot, at least in the last 1-3 years. Find out whether the robot's performance shows a trend of profit or loss. And besides that, also pay attention to the large percentage of losses when compared to the large deposit/capital.
  • Check the equity curve to see if the robot is showing a steady upward trend, or is it fluctuating too much. If the performance is fluctuating, the risk level is higher.
  • Check the risk-to-reward ratio and compare it to the amount of reward or profit. If the ratio is below the reward, the trading robot has the potential for good performance in the long term.
  • Check the maximum drawdown amount or the maximum amount of deposit or equity decrease. By paying attention to this, you can estimate the amount of deposit needed when you use the robot.

How to Choose the Best Forex Trading Robot to Provide Consistent Profits

If you are a trader, you will certainly be familiar with the term forex trading robot or what is often called an expert advisor. A robot commonly known as EA Forex has various functions that will later make it easier for you when you are trading in forex.

For those of you who are still beginners or want to learn about forex trading, you must first know about the ins and outs of free forex ea and its various uses. This forex trading offers flexibility because it can be done with various trading styles, strategies that are also different and variations in the systems that we can use.
 
Currently, there are many free forex robots available 2020 and the latest ones for you to use. The biggest difference that separates traders into two types is those who trade manually, or those who trade automatically, especially for traders who use automated software to run forex trading. Although free trading robots are quite helpful, as a trader, you must be wiser in choosing a robot that has been tested well.

Characteristics of Forex Robots that have been tested and are the best

  1. Having a complete and good guide on how to use a free forex robot so that later its users will know about the effects on the time zone, selection of time-frame, minimum funds, percentage of funds that must be spent and so on.
  2. Trading robots that have been tested using data from several years ago are in the range of 1-2 years.
  3. Free or paid forex trading robots can be said to be good if they have been tested for more than two years. Therefore, you must be more careful with trading robots that can later provide profits in just a matter of months.
  4. In free forex robots 2019 or forex robots of any year that have different characters will be prioritized, forex robots that have complete user guides.

Tips for Choosing a Forex Robot You Should Know

Here are some things you can do to choose a good and correct forex robot or free EA with consistent profits:
  1. Using good trading patterns, such as trailing stop, stop loss, take profit, etc. Using good financial management. For example, providing the lot size that is currently being opened in each transaction, the amount of funds that are being wagered if you later experience a loss, etc.
  2. Has a complete and good guide to using forex robots.
  3. Forex robots have previously been tested using current data or data from several years ago.
  4. Forex robots can be used for scalping or martingale methods, this is done because not all brokers allow the use of such aggressive trading systems.
  5. Don't be easily tempted by promotions that will often be offered
  6. Digging deeper into information related to the trading robot.
  7. Pay attention to testimonials from traders or investors on one type of forex robot.

How to Make Your Own Forex Robot Very Simple

If you want to create a trading robot independently, there are several things that must be prepared first. If you want to experience trading with a robot, there are two ways to get trading, the first is to make it yourself using the condition that you have mastered the language in programming.
  1. First open the MT5 or MetaTrader 5 program that you have, then please click on the tool menu section? click Metaquotes Language Editor.
  2. When the Metaeditor program opens? click on the new menu or use the CTRL + N combination to create a new sheet and then a dialog box will appear. Then check the Expert Advisor section? Click Next.
  3. Fill in the data related to the data provided related to your robot? Click finish.
  4. Next, write the program script for the EA that you will create later.
  5. Click save, then you can test the robot you already have.
As much as possible, you should be more active so that you can follow the discussions in the trading forum that you are following, because from there you will have various information related to trading robots and also about the best EA robots.

Keep monitoring the forex robot that you already have, never get used to handing over the entire transaction on the forex robot that you have. If you want to learn more about forex trading, especially for forex robots, then the way you can take is by joining a trusted trading community that can provide you with knowledge related to forex trading.
 
The thing that must always be remembered is that special Forex Robots cannot adapt or build sensitivity to the market, and will certainly always follow the rules that have been input. If later there is a sudden change or anomaly in the market, then the robot can fail if it produces according to your expectations. Trading using a robot does not mean that you can always be successful if there is no learning at all.
 
Everything must first be studied properly in order to get maximum results. Therefore, it would be better to improve your skills and knowledge related to forex robots and how to repair the robot periodically.

After knowing what a forex trading robot is including knowing more about how this software works, you need to consider your ability to use forex trading robot software, especially regarding costs. If you are ready, then use this sophisticated device. Happy trading!

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