Forex robot trading is a trading method that uses advanced automated forex trading systems to trade without any involvement from the trader. Many new forex traders are curious about forex robot trading, not least because of the hype surrounding new releases. Every time a new robot is launched, the internet runs wild with hype and everyone is anxious to get their hands on the newest sure thing. Some robots live up to the hype and others does not. But how can you actually make money with forex robot trading?
First of all, let’s talk about how you make money form forex trading. Forex trading covers the exchange of currency pairs such as USD/EUR, forex options and forex futures. Every time someone changes one currency into another they participate in the forex market. In essence, forex trading is no different than trading stocks or bonds and in some ways is actually easier to learn. All forex is traded on the Interbank market which is the internal bank market. To trade on the Interbank market, a trader must gain access to it by using a forex broker. Forex brokers are intermediaries between the trader and the market and offer a platform to trade on. The vast majority of forex brokers use a platform called Meta Trader 4 and this is where forex robot trading comes in.
The Meta Trader 4 platform is a small work of genius in the world of trading. The platform has it’s own development language that traders can use to develop applications and macros. Forex robots are pieces of software developed by expert traders and software programmers to trade automatically on the forex market. The way it works is that the forex robot receive the forex rate data from a feed from Meta Trader. The robot then analyses this data and uses different types of technical analysis to determine if a trade should be made. The process is exactly the same as when a human trades, but the forex robot has some notable advantages. Forex robots can analyze date much faster than any human trader, which means the robot can look for profitable trades and run trough thousands of scenarios before you could even think about executing a trade. Think of a forex robot like you would of a very advanced chess robot. Today, there is no doubt that the Deep Blue chess robot for example, is a better chess player than even the very best. The same is true with a robot. There may be forex traders with years of experience that can consistently outperform a robot, but for most traders, they are up against too much processing power.
This is of course true only for good forex robots. There is a lot of junk out there, so be careful to do your research before you buy. I have included some reviews of forex robots on this site. They are all robots that have been tested over at least one month and all have made money.