I’m a complete novice but have been told there’s money to be made with Forex robots. No particular knowledge required and the robots function on their own once you’ve set it up.
Is this true and if yes, which robot is the most recommended?
I’m only starting with small money. Don’t want to lose my shirt!
Thanks in advance for responding.
Cheers.
Kismet.
I doubt there’s a robot you can just buy and run that makes money off the default settings. On MT5, you can use the robots on demo mode for free and backtest for free, so you can try that to see how they do before letting it loose with real money.
But the reality is that most for sale robots don’t work that well, if they did, then why would somebody give away their golden goose and not just use it to make themselves millionaires? But robots do work, and most institutions use algorithms for trading, which is what has resulted in flash crashes when they all go into sell mode at the same time.
Although Forex trading robots promise to perform beneficially, not everyone gets the results Traders expect.
There are many who consider them a scam. Therefore, you are not likely to find an article in Forbes, Wall Street Journal or any other reputable source of news that promotes them.
In addition, the federal government considers that most of them are just scams. Similarly, you are not likely to find any items.
Many false statements of people who claimed to have made a lot of money with Forex robots have been discovered. But the truth is that many investors and Traders have lost a lot of money using free Forex Robots.
For this reason we advise you that if you want to know the effectiveness of an automatic robot trading review comments and testimonials authorized and certified.
Also, don’t forget that the best thing you can do is try a trading robot for yourself and not believe in all the ads available on the Internet.
It is important to think about trading robots not as about something that could earn money without your interferrence, but as about the tools which would help you to automatize your trading. That is why be successful in automated trading you will need two things:
- profitable strategy or skills and experience needed to build it,
- knowledge in the sphere of coding.
The idea is that you can take strategy that brings profit in long term perspective (you can check its performance through backtesting) and describe it as and algorithm in a form that the machine would understand. The strategy itself is the most important part of any robot, that is why any attempts to find free robot within the internet would be just a waste of time - noone would share the robot based on the strategy that brings money.
Thus, you should start with the developing of your own strategy and then study programming (or ask someone to write a code for you, there are numerous specialist offering such services).
Robots may help in analysing the market. May execute trades based on some defined algorithms and formulas. But there are so many variables within the trading, that no one can even predict them. For example, no one knew about Brexit. And is very likely, many robots ruined thousands of accounts during the trading.
Also, the market is constantly changing and some rules worked 3-4 years ago do not work properly nowadays. Therefore any robot must be revised and updated on a regular basis.
However, you may use automated trading which executes trades made by traders. E.g. a trader makes a trade, an autotrader copies details of a trade to your account while you sleep, work, etc. But this is not a robot though.