Truth Behind Forex Robots: Separating Myth from Reality - Hindustan Times
close_game
close_game

Truth Behind Forex Robots: Separating Myth from Reality

Published on Mar 18, 2024 01:01 PM IST

Forex robots automate repetitive and technical aspects of trading, offering advantages but not foolproof solutions.

Truth Behind Forex Robots
Truth Behind Forex Robots
ByHT Brand Studio

Forex Robots take advantage of the repetitive and technical analysis-based aspects of forex trading. These aspects are highly suitable for automation. Successful long-term FX trading involves various factors, yet forex robots (bots) or automated services can offer certain advantages.

However, no matter how advanced and capable they may be, forex robots cannot provide a foolproof solution for immediate profitable trading.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

What are Forex Robot

A forex robot is a specialized program/software that generates trading signals using mathematical algorithms and technical indicators. Some FX robots simply provide these signals to traders. Others can take action based on them. This particular version is the one that truly deserves to be called a “robot.”

Having software handle all the complex trading tasks for you seems appealing. You can simply go about your life and collect the profits whenever you want. That's not the correct approach to automated trading. There are numerous sellers of such systems available, who would rather have you believe that about Fx robots.

How do Forex robots work?

Expert Advisors

The "home" platform for expert advisors (EAs), or forex robot, is MetaTrader 4 (MT4) from MetaQuotes. To generate trade signals and take action on them, EAs employ a plethora of bespoke scripts and technical indicators. EAs can be directly coded by anyone using the trading platform. MQL 4 (MetaQuotes Language v. 4) is the programming language utilized to do this. The top-performing EAs are bought and sold in a thriving market by traders and programmers.

The best forex robots can scan an absurd number of charts. They then locate trade opportunities using the technical indicators they employ. The robot can suggest an opportunity to the trader after it has detected one. It could also take action on it, opening a position based on a predetermined set of rules.

Having problems

It is painfully clear that the robot/EA has some problems during both stages of operation. Experience has demonstrated that there is a very narrow range in which automated trading truly functions. Furthermore, having a clearly defined pattern is beneficial. Profits from auto trading are typically quite small a few pennies at most. With the appropriate setup, forex scalping robots can achieve great success.

However, these drawbacks mean that significant price fluctuations can quickly wipe out all earnings. Negative trends and choppy markets are the worst enemies of profitable auto trading. Therefore, before giving the robot's algorithmic "brain" complete control, the operator must identify a trend with the right strength and direction.

Can We Trust Automation?

Making forex robots that work is not at all simple or easy. These kinds of software take a lot of time and work from programmers. This is not an easy task because of the huge number of factors it has to deal with.

With that in mind, the idea of a free computer that can trade quickly stops making sense. Having said that, a working FX robot isn't very good at what it does. Also, the government thinks that these automated traders are either not trusted new technologies or are scams.

Trading Experience

The forex robots business is not a good place to trust. People who sell different trade bots try to make their competitors look bad. It's kind of like the Wild West out there, and buyers who buy forex robots rarely come out on top.

So, the best way to find a forex robot that works for you is to read reviews written by real users. Make sure that the feedback you are getting is real. People who make Forex robots are very good at fake user reviews.

Real forex robots always need a lot of help from the user. In other words, the ideal customer is not a complete beginner. He or she needs to know everything about the market where his or her robot works. The bot's only job is to do the boring tasks that the user has to do over and over again. It can't be the "smarter" group.

Make Your Robot Strategy

Next, you need to be able to program your Forex robot to follow your instructions. After that, you need to keep one eye on the market or basics and the other on your robot, making changes to its settings all the time. It's also often a good idea to shut it down completely and come up with a completely different plan.

In the end, don't expect too much from your robot, and know that you will still have to do a lot of work even when it trades for you. Stay away from free trading robots. This is true for all deals that seem too good to be true.

Pros And Cons

  • It's easy to see why forex tools are useful. You can have your robot trade for you 24 hours a day, seven days a week if you set up a trading plan that works and can be repeated over and over again.
  • FX robots do all the hard work for you when you trade forex. But they can't do anything else to help you.
  • They can't come up with their plans, so they can't change with the times in the market.
  • To be successful at forex trading, you need information, skill, intuition, and the ability to think analytically. None of those things are true of forex robots.

Past Forex Performance

Any broker will quickly tell you in the small print that past performance does not mean future performance will be the same. As we already said, the market for FX robots is like the Wild West. To sell their work, actors don't hold back and don't spare any tricks.

One trick that sellers of forex robots that seem to be telling the truth like to use is picking the best backtest from groups of hundreds or thousands. Then, they show that backtest as what the buyer of the "system" can expect to happen.

Scam Forex Robots

Many different types of scams can be found in the forex robot business. The way things are now has always been that way, and they probably will stay that way. The idea of an automated trader is only kind of legal, which means that shady things can happen to them.

How can you tell if a Forex robot is not what it seems to be?

  • The seller gives it away for free. It would be rude to give a robot for free after putting in the work, time, and maybe even money to make one. It promises to make money. When it comes to automatic trading, no one can promise anything. Because it is so smart, the robot can come up with its plans. It's not possible to do this. It looks like the robot is powered by some cool technology. In the days of binary option auto trading scams, this was a trick that con artists loved to use.
  • Con artists know that some people are easy to trick, and they count on being able to do so.
  • It's a fair price for the robot, somewhere between $20 and $100. This doesn't make sense. For that much money, no one is going to sell you a useful trading robot.
  • The seller says the robot is a long-term answer that you can just turn on and forget about. Because automatic trading doesn't work well in the long run, most forex robots that do work are scalpers.

Conclusion

Technical research is used by forex robots. So, they are seriously limited in what they can do because of that. Perhaps you need to be both a good trader and a good writer to use a robot to your advantage. Having said that, there are real automated trading options out there. Forex robots that work, on the other hand, always need human input.

You can tell which automated traders are real by quickly reading through some of the forex robot sites. There, people from the community will also talk about how to set up their FX robots in different ways. These setups show how hard it is to use automatic trading. The seller is the source of the winning plan. Forex robots can only make things easier for machines.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away! -Login Now!
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Tuesday, April 23, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On