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20 Best Forex Trading Robots

Forex Trading Robots

 

A forex trading robot is an automated computer program which generates trading signals, places orders and manages positions for forex traders. The trading signals generated determine opportunities to open or close positions. The trade is then executed automatically or in the case of semi-automated robots, authorized manually by the trader.

 

Forex trading robots can be purchased online from independent developers and they’re generally inexpensive. They’re useful in that they remove the emotional pressure of forex trading but they are not foolproof; they have their limitations and should be used with caution.

 

In this in-depth guide you’ll learn:

  • FTA TOP 20 PICK OF EAs
  • Definition of Forex Trading Robot
  • Difference between Forex Trading Robot and an Indicator
  • Map to how Forex Trading Robot works
  • Different types of Forex Trading Robots
  • What is a forex trading robot?
  • How does a forex trading robot work?
  • What is the difference between a trading robot and an EA?
  • Do forex trading robots make profits?
  • Who uses forex trading robots?

 

And lots more…

 

Let’s dive right in…

 

FTA 18 Best Forex Trading Robots Pick of EAs

 

💻 𝗘𝗔'𝘀
🔎 𝗗𝗲𝘁𝗮𝗶𝗹𝘀
📌 BF Scalper ProEA uses breakouts of the Bollinger Bands for entry and exit signals

Reasonable TP and SL levels plus new ATR-based algorithm
📌 EOS Forex EAProgramming services include ongoing coding to ensure your software runs at optimal levels at all times
📌 Forex CyborgInnovative multi-currency forex trading robots, trading 18 currency pairs at once on 15 minute charts
📌 Forex DiamondWorld-class forex system with 40+ recovery factor

3 completely Independent trading systems in one EA
📌 Forex Flex EAUses innovative technology to open and close virtual trades in the background
📌 Forex FuryReal-time automated results; boasts a 93% winning track record with verified Myfxbook accounts
📌 Forex GumpUses trendy candles and news filters; unique Takeprofit on each order

3 different settings; high, medium and low

Multi-currency strategy on 9 currency pairs in M1 timeframe
📌 Forex in ControlTrading on two currency pairs with a possibility to limit a drawdown separately on each of them: AUDUSA and EURGBP in M30

Trading statistics based on real money account; performance verified by Myfxbook
📌 Forex Real Profit EAUses 6 different strategies: 2 for scalping on Asian session, 1 for scalping on trend all day and 3 breakout strategies

Currency pairs: EURUSD (main robot) and GBPUSD (additional robot)
📌 Forex RobotronCurrency Pairs: EURAUD, EURCAD, EURCHF, EURGBP, EURUSD in M5

Backtested with real tick data, real variable spreads and real slippage
📌 FX DiverseUse from 3 up to 28 trading pairs

Only trading on real accounts
📌 FX StabilizerWorks on 8 currency pairs; EURUSD and AUDUSD are the main pairs which have 2 modes: Durable and Turbo
📌 Grid MasterProUsed for a grid-based trading strategy

Additional trades feature allows “high frequency” scalping
📌 Happy Forex EACombines trend/grid/hedge/semi-martingale according to risk low/middle/high/combi EA files
📌 Jet TraderFocused on working with only the EURUSD currency
📌 Powerful ForexWorks without indicators; calculates the entry point by analyzing the movement of the market over the previous days
📌 Wall Street 2.0 EvolutionWorks on real money account
📌 Z TraderNo scalping, no averaging

Fixed lot size, no martingale and compatible with any broker

 

10 Best Forex Brokers for 2024

Rank

Broker

Review

Regulators

Min Deposit

Official Site

#1

AvaTrade-Islamic

4.8/5

User Score

#2

4.7/5

User Score

#3

4.5/5

User Score

#4

Tickmill Review

4.4/5

User Score

#5

4.7/5

User Score

#6

4.6/5

User Score

#7

4.7/5

User Score

#8

4.8/5

User Score

#9

4.7/5

User Score

#10

4.7/5

User Score

 

Definition of Forex Trading Robots

 

A forex trading robot is an automated computer program that monitors the foreign exchange (forex) market and generates signals that identify trading opportunities. The forex market is the most liquid market in the world and trades 24 hours a day/5 days a week. Forex trading robots allow retail traders access to the market even when they are not available (sleeping or working).

There are two types of traders; those who manually trade and those that use automated trading tools. Trading robots are created for the latter. There are also two types of trading robots; automated and semi-automated robots. The latter allows for human intervention where the final decision to trade on a position is in the control of the trader.

 

Forex Trading Robots

 

Difference between a Forex Trading Robots and an EA

 

➡️️​ The term forex trading robot and Expert Advisor (EA) are used interchangeably. EAs are more commonly associated with MetaTrader which is one of the most popular trading platforms in the world. EAs for MT4 and MT5 are all completely unique to the platform.

 

➡️️​ By definition, forex trading robots and EAs are pieces of software that are programmed to automatically trade on a forex trader’s behalf within pre-determined parameters. The automated method of trading is also called black-box trading.

 

➡️️​ EAs are widely used in the forex market and are a strong selling point of trading platforms such as MT4 and MT5. Some traders exclusively use EAs while others do manual trading and deploy EAs on other trading accounts as part of a diversification strategy.

 

➡️️​ EAs are built into MT4 and MT5 using the MQL4 and MQL5 programming languages. The program includes technical indicators and scripts for the MetaTrader platforms and is supported by MetaQuotes. A large community of developers share their EAs on trading forums.

 

Different types of Forex Trading Robots

 

 There are two types of forex trading robots:

 

💻 𝗙𝗼𝗿𝗲𝘅 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗥𝗼𝗯𝗼𝘁 𝗧𝘆𝗽𝗲𝘀
🔎 𝗗𝗲𝘁𝗮𝗶𝗹𝘀
📌 Fully-automatic robotsThese robots do everything for a trader. Once you open them up, they enter and close trades at any time in the trading day according to the parameters you set.
📌 Semi-automatic robotsThese robots do everything up to opening and closing a trade. They generate trading signals and identify trading patterns. It’s up to you whether or not you authorize the trade.

 

Forex Trading Robots details

 

Map to how Forex Trading Robots works

 

 A trading robot is programmed to rapidly scan price movements, determine trading patterns and identify whether an opportunity exists to buy or sell a currency pair at a given point in time. Fully-automated trading robots execute the trade without human intervention based on a pre-determined set of criteria.

 

Trading signals are implanted in the software program and the robot automatically determines when it is the right time to trade. They are popular because they remove the need for human intervention and eliminate emotional responses to changes in trading conditions. Simply put; traders panic, robots don’t.

 

They’re also popular because they are capable of scanning multiple charts in nano-seconds which would be impossible for humans to do. The trading robots find profitable trades even in volatile market conditions. They follow the trend that is most likely to generate good profits and they eliminate any chance of potential losses.

 

Where trading robots are limited is they are programmed to trade within a certain range. They are set to achieve pip targets in a tight range and hopefully make profits in each trade. When a breakout occurs unexpectedly, small profits made during the day are often wiped out.

 

Trading robots generally gain a profit in a positive trend but tend to lose money in more volatile trading conditions. This is why semi-automatic trading robots are more popular because it allows for human intervention to set a stop-loss.

 

Forex Trading Robots (EA)

 

Difference between Forex Trading Robots and an Indicator

 

➡️️​ Trading robots are used for automated trading and indicators are used for technical market analysis and to boost trading efficiency when trading manually.

➡️️​ Trading robots analyze currency prices in rapid time and do performance calculations almost instantly without any human involvement. They do it tirelessly and objectively, without emotion that humans often experience. The end result is trading robots determine trade entry and exit points, often more precisely than humans.

➡️️​ Indicators are the most important tool for technical analysis. A trading platform like MetaTrader 4 is equipped with an impressive set of popular technical indicators that satisfy the most advanced analytical demands of modern forex traders.

➡️️​ Technical indicator signals help forex traders make informed decisions on how and when to trade. They use a mathematical transformation of a financial symbol price aimed a forecasting future price changes. In other words, indicators pick up cues from historic data to predict future price movements. This is done by identifying characteristics and patterns in price dynamics that your average human trader might not pick up.

 

📊 𝗙𝗲𝗮𝘁𝘂𝗿𝗲𝘀💻 𝗙𝗼𝗿𝗲𝘅 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗥𝗼𝗯𝗼𝘁 (𝗘𝗔)💻 𝗙𝗼𝗿𝗲𝘅 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿
📌 PurposeExecutes automated trades based on pre-defined rules and algorithms.Provides visual or audio alerts, and/or graphical representations of price or market data.
📌 FunctionalityFully automates trading decisions and can place trades on behalf of the trader.Provides information or signals to help traders make manual trading decisions.
📌 AutomationFully automated; can trade 24/5 without direct human intervention.Requires manual interpretation and execution of trades by the trader.
📌 Trading StrategyTypically follows a specific trading strategy or algorithm coded into the EA.Offers technical or fundamental analysis signals to assist traders.
📌 CustomizationCan be highly customized and tailored to specific trading strategies.Limited customization options; usually, traders use predefined settings.
📌 CostSome EAs may be available for purchase or subscription, while others are free.Many indicators are freely available, and some may have a one-time purchase cost.
📌 Real-time MonitoringRequires monitoring to ensure it's functioning correctly and adjust settings if needed.Requires monitoring to act on signals when they occur.

 

Definitions of Forex Trading Robots

 

Pros and Cons

 

✅ Pros❎ Cons
Backtesting trading strategies against historical data is also a lot easier with trading robots. It’s a complex and time-consuming process when done manually. Trading robots can download, store and analyse large amounts of historical data which a forex trader can use to measure the effectiveness of different trading strategies.You need a strong and reliable connection to the Internet. Power faults or outages can cause glitches in the program and prompt the trading robot to trade incorrectly, such as miss an entry or exit point.
Trading robots multi-task at a level no human is capable of which is why many traders use them. They automatically manage multiple conditions, including entry and exit points, stop-loss orders and profit targets. Trading robots can also monitor multiple currency pairs at the same time.Beware of reporting bias. Some robot developers promise unsuspecting new traders the world by showing profit-making backtesting results on their websites. However, these results are often skewed through curve-fitting and data-mining bias. Often, forex trading robots look good ‘on paper’ because the developers have cherry-picked only the best backtests.
Forex trading robots do not sleep; they work 24-hours a day/5 days a week. Basically, if the forex market is open, trading robots are working.There are good forex trading robots on the market and some dodgy ones. Beware robot scams, it’s a money-making racket for some developers.
Trading robots show no emotion towards price movements; the entire process is automated. The only time a trader intervenes is when using a semi-automatic forex robot.Check carefully when buying a trading robot online. Most trading robots mimic scalpers. A scalping trading strategy involves holding currency pairs for a short period of time to make numerous small profits. Scalpers take advantage of small price movements that occur throughout the day by opening and closing multiple positions in a 24-hour period. The aims is to make small gains of between 5 to 20 pips per trade.
The main advantage of forex trading robots is they can crunch a lot of data in a short period of time. What a trading robot can analyze in a fraction of a second would take a human a few hours.This limitation makes trading robots poor for fundamental analysis. They’re good for only technical analysis which involves perusing historical market data and price charts.
The disadvantage of forex trading robots is they are merely tools and they can’t think for themselves. They perform trades based on trading signals that are generated through algorithm coding. They can’t respond to breaking news or shifting market sentiment.

 

Conclusion

 

Inconclusion, Expert Advisors (EAs), another name for forex trading robots, give traders a strong tool to automate their trading techniques and lessen emotional bias. While they can be useful additions to a trader’s toolkit, it’s important to keep in mind that success in the Forex market still necessitates a thorough comprehension of market dynamics and ongoing robot performance monitoring to make sure they are in line with your financial objectives.

 

10 Best Forex Brokers for 2024

Rank

Broker

Review

Regulators

Min Deposit

Official Site

#1

AvaTrade-Islamic

4.8/5

User Score

#2

4.7/5

User Score

#3

4.5/5

User Score

#4

Tickmill Review

4.4/5

User Score

#5

4.7/5

User Score

#6

4.6/5

User Score

#7

4.7/5

User Score

#8

4.8/5

User Score

#9

4.7/5

User Score

#10

4.7/5

User Score

 

Disclaimer

Trading foreign exchange on margin carries a high level of risk and it may not be suitable for all traders and investors. Forex is a highly leveraged financial instrument and these high stakes can result in you losing money. Consider your appetite for risk before trading forex using a real live account.

 

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Frequently Asked Questions

 

What is a forex trading robot?

An automated software program called a forex trading robot employs algorithms to carry out trade decisions on behalf of traders, often without human involvement and in accordance with predetermined criteria and methods.

 

How does a forex trading robot work?

An automated forex trading system analyzes market data, spots prospective trading opportunities, and then executes buy or sell orders in the foreign currency market, frequently without the need for human participation.

 

How can you develop your own trading robot?

All you need is a basic knowledge of MQL5 coding. If coding isn’t in your repertoire of expertise, you can hire a coder to develop a personalized trading robot for yourself. Platforms such as Freelancer.com and Upwork.com are a valuable resource to find coders.

 

Who uses forex trading robots?

Forex trading robots are popular among retail traders, particularly those that are beginner traders starting off with a demo account or those who have full-time jobs and don’t have the time to dedicate long hours to analyzing technical charts.

 

Do forex trading robots make profits?

Forex trading robots that are successful do not focus on high win rates. Rather, they focus on position sizing and cutting losses quickly. They can and do make marginal profits for forex traders but they are not fool-proof.

 

What is the difference between a trading robot and an EA?

A trading robot and an EA (Expert Advisor) are essentially the same thing, as both terms are often used interchangeably to refer to automated trading software that executes trades in financial markets based on predefined rules and algorithms.

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