Forex Robots are automated systems that trade the forex market for you. They are also known as expert advisors (EA’s) and can be referred to as automated trading software.
They are useful if you don’t have time to trade the currency market on a daily basis. This is referred to as day trading and in some cases scalping. The automated software will can trade for you and make you profit provided you choose a good forex robot. There are reviews all over the net on the different robots available. Forex forums are a good place to look for information. The also reduce the stress day trading can cause and help aspiring traders who have discipline and emotion problems. These can both have a negative affect on trading. Fear and greed are eliminated when automated software trades on your behalf.
Some people claim that forex robots do not work. Of course not all work but there are a few that can produce profit provided they are used correctly. Factors that have to be considered are: Does the forex robot use a stop loss? You should never use a martingale system as this can blow your account in a single trade. It is also important to choose a broker who has a competitive spread on the pair that the forex robot trades on. Many systems look good in back testing due to slippage, spread and execution delays not being taking into consideration. It is a good idea to forward test the expert advisor before using it on your live account.
What to look for in a forex robot
Make sure that it uses a stop loss. It would be an advantage if it runs on currency pairs with low spreads. Also check the time that the ea is active. Scalping EA’s that run during the quieter times are amongst the most profitable and have little risk. Even scalping robots can bring big profits with small drawdowns.
Forex robots do work, it is just a matter of back testing and forward testing until the system is optimized to bring the highest amount of profit with the smallest amount of risk and draw down. I use an ea on my live account that I have setup on a virtual private server and it brings me great results everyday without me having to go through the stress that manual traders do.
Good Luck with your trading!