Forex robots

What are robots for Forex and how do they work

Forex robots or advisors are special programs that implement a trader’s strategy and perform work for him – completely or only part of it. The Robot or Expert Adviser is installed on the trading platform where automatic trading is allowed. There are built-in advisors on the Forex trading platforms (fig. 1).

MetaTrader 5 use advisors to trade Forex

Fig. 1

A robot, downloaded from a third-party site, is loaded onto a platform such as MT5. Most often, the robot is an archive with folders and files. You should unzip, open the catalog of the trading terminal (fig. 2) and copy the entire folder «MQL5» (fig. 3) with the data of the robot in the data directory, then confirm the combination of data and restart the computer. This is a standard way, but before you load any robot, you need to read the download instructions.

MetaTrader 5 directory of advisors for forex trading

Fig. 2

MetaTrader 5: how to install the trading advisor in the terminal

Fig. 3

The operational principle of a robot is that it monitors the situation in the market, determines the signals or situations in accordance with the program laid down in it and submits an application for a transaction to the Forex broker and then the broker executes this application.

In other words, the effectiveness of the robot ultimately depends on the program that written for it. Therefore, it is a mistake to rely on the fact that the robot can be turned on and forget about it, and it will be non-stop and without any intervention of the trader to increase profits.

 

Kinds of Forex robots

There are different kinds of robots. These may be automatic and semi-automatic systems. Automatic robots as such trade in fully automatic mode after setting up and starting. Semi-automatic trading robots determine entry and exit points, stop loss levels and so on, but the trader makes final decision on trading actions. Also, the scripts assistants can be considered as a kind of robots. They can close several positions at the same time, automatically place orders or stop losses.

There are indicator robots that, as the term suggest, trade in accordance with the information of the indicators presented on the trading platform or on the author’s indicators. It can be Stochastic, moving averages, Bollinger Bands or oscillators like RSI and so on. Technically, this is probably the easiest way to trade, although it is more effective in a calm market.

The robots without indicators trade, for example, on price dynamics, on patterns of candlesticks and bars, on time of trade, on news and so on. Such robots may make mistakes, when a rapid change in the dynamics of prices.

Robots differ in the implemented strategy – Martingale, scalping, trend, news, combined and others. Advisor, working on Martingale principle, increases the lot twice after each losing trade. Trading with a robot that works on this principle is quite risky, you need to have a significant deposit, but you need to trade initially only the amount that can be lost – it is very likely to Martingale.

The robot that implements the scalping strategy determines a moment of the impulse makes a deal and exits as soon as there are signs of termination of the impulse. As a rule, trading takes place on small timeframes. The robot defines the entry point for indicators or patterns. This is a high frequency strategy, so most traders start with small bets and often trade in small lots the entire trading period. Despite its apparent simplicity, this method is suitable for experienced traders, as it is very easy to go to a loss.

Arbitration robots, as the term suggests, trade by taking into account the information of different brokers. The bottom line is that the «broker» can be «slow» or «fast», the robot should have time to «see» the price change from a fast broker and place an order in the same direction by a slow broker. To do this the trader should have a fast Internet, a powerful computer and trade during the greatest liquidity in trading. Brokers do not welcome this type of trading and, besides, it is a type of trading that is difficult technically to perform. However, there are robots that specialize in arbitration.

Trend robots trade determining the trend line and trading with its use. The robot opens a relatively small number of trend transactions. The robot uses Forex indicators. The problem is that there are unambiguous criteria for changing the trend. More often trend advisors are used for trading in a volatile period; they can be unprofitable in a quiet market. There are other types of robots like neural robots that have to learn on their own and predict price movements according to past events, and news robots that programmed to trade on important events.

The task of any robot and advisor is to save the trader from routine work and automate those processes that can be automated. Such work is, for example, 90% of the trader’s activity, but only 10% are effective. These 10% of the activity include study of the market situation and development of an effective strategy. However, the robot is supposed to implement it.

 

What is the difference between Forex robots and advisors?

Describing of the programmable assistants, traders often do not distinguish between a robot and an advisor. However, there is a difference between them. Robots for trading are designed for fully automated operation; their program includes all trading activities. However, such applications are not welcomed by all brokers and therefore work with such robots is quite risky.

Advisors are robots that only indicate the expected price movement; they do not do work instead of the trader, but only simplify to make decision and accelerate the actions of the trader. And they are invisible for the brokers. If you download a robot or advisor from Internet, you need to specify what is what. Developers and analysts do not pay much attention to the difference between these types of applications, calling robots advisors and vice versa. You also need to clarify whether robot or advisor is paid or free, it is not always clear from the description.

 

Forex robots review

The choice of robots for Forex trading is extensive. Many of them work in Forex market for many years and are regularly updated. Let us consider the most commonly used robots, taking into account a sufficient number of positive reviews.

One of these robots is a paid expert adviser Forex Flex EA. It is considered to be a fairly advanced robot that can be configured to implement many strategies. It works with GBP/USD, USD/JPY, USD/CAD, USD/CHF, EUR/USD, AUD/USD, EUR/JPY, EUR/CHF, EUR/GBP, EUR/AUD currency pairs. The user of the robot manages the capital; while the robot only helps to predict the price movement using indicators.

  • Platform: Metatrader 4, Metatrader 5.
  • Currency pairs: multicurrency advisor.
  • Operation mode: day-and-night.
  • Timeframe: H1, M15, extra settings available.
  • Strategies: 12 strategies are used.
  • Trading: on indicators information.
  • https://www.forexflexea.com/.

Forex Hero

It is a fully automated paid advisor that is considered to be highly risky, as its work is based on the Martingale principle and uses the depth of market for scalping. Therefore, it is preferred by traders with a small deposit to work with brokers with a minimum spread. There are many websites on Internet where you can download this robot; they need just to be checked how safe they are.

  • Platform: Metatrader 4.
  • Currency pairs: multicurrency advisor.
  • Timeframe: M15.
  • Operation mode: day-and-night.
  • Strategies: scalping on small deposit.
  • Trading: Martingale.

The basic algorithm of the paid robot Trend a Lot are Demark trend lines (TD-lines) that the robot builds independently on the price chart. The deal is made by breakdown of the support or resistance line. It is not recommended to use it on too small timeframes because of the large number of false signals. The trader should also be able to determine the parameters of the trade correctly, as the robot sets stop losses on its own.

  • Platform: Metatrader 4, Metatrader 5.
  • Assets: any.
  • Trading: by Denmark lines.

In different Internet sources the same information about success of this robot is spread for years (it is true for many other robots too). Therefore, it is better to check its operation on a demo account.

Trend Scraper (Broker Hacker) is a fully automated paid robot trading on moving averages. It is considered to be one of the easiest to set up and use, but does not have high profitability, so it is recommended to set up for several currency pairs. The disadvantage is also the lack of profit during the flat.

Forex Combo System is a paid robot, implementing four strategies – scalping, trading against the trend, narrow range price breakout trading, flat trading – separately or all together. The advisor isn’t considered to be a high-return one, but it’s stable in operation.

  • Platform: Metatrader 4.
  • Currency pairs: EUR/USD, GBP/USD.
  • Timeframe: M5.
  • Operation mode: day-and-night.
  • Trading: own algorithm.
  • https://www.forex-combo.com/.

KeltnerPro is a Forex advisor trading according to price trend, opening transactions on short timeframes towards the trend. The robot defines the trend using the Keltner indicator. Assumption is that KeltnerPro works more efficiently on the very volatile market. Traders note that it’s important to learn setting stop losses working with this advisor, otherwise the robot will quickly lead to losses.

  • Platform: Metatrader 4.
  • Currency pairs: multicurrency advisor
  • Timeframe: M5/M.
  • Operation mode: day-and-night.
  • Strategies: semi scalping
  • Trading: on Keltner channels.
  • http://www.keltnerpro.com/pro.html.

Also worth noting Wall Street Forex Robot (https://www.wallstreet-forex.com/), which is designed mainly for scalping strategy on EUR/USD pair, but it can be used for other pairs too. Its trade is based on the information of CCI, ATR indicators, Williams Percent Range, moving averages.

Another robot, GPS Robot 3 (http://gpsforexrobot.com/), is a profitable robot created for a private group of Forex traders making over 30% profit per month.

Free robots review

Free robot CashProfit trades on the basis of market situation and when there is a threat to lose funds, it sets stop-losses immediately. Through this, it attracts novice traders. The advisor works most effectively on a 15-minute timeframe when trading EUR/USD. Downloading this robot from Internet is not a big deal, but the sources needed to be checked and tested anyway.

  • Platform: Metatrader 4.
  • Currency pairs: EUR/USD and others.
  • Timeframe: M15 and others.
  • Operation mode: day-and-night.
  • Strategies: scalping, counter-trading, on pullbacks, on flat.
  • Trading: on own algorithm.
  • Download free.

Cobra is a free robot that considered being effective for working in a highly volatile market. The work of expert adviser Cobra is based on the moving average. According to it the expert adviser determines the trend and places orders; lots are calculated automatically. It is believed that the optimal is to work with the basic currencies for the robot on basic settings. Robot search and download is not a big deal.

  • Platform: Metatrader 4.
  • Currency pairs: EUR/USD, GBP/USD, USD/JPY.
  • Timeframe: M1-H1.
  • Operation mode: day-and-night.
  • Strategies: by deviation from moving average.
  • Trading: Martingale.
  • Download free.

Free robot Gepard looks for points to enter the trade based on analysis of Stochastic, Parabolic SAR, CCI and other indicators, information of the trader’s portfolio. The robot can hedge positions in case of trend reversal. There are many parameters in the list of robot settings that complicates configuration. Robot search and download is not a big deal, but the version and sources are supposed to be checked.

  • Platform: Metatrader 4.
  • Currency pairs: multicurrency.
  • Timeframe: M15 to H1.
  • Operation mode: day-and-night.
  • Strategies: scalping, correction.
  • Trading: by some indicators.
  • Download free.

Golden Profit Auto is a free robot which operation is based on the Martingale algorithm, it opens a lot of transactions on a strong movement which may be unprofitable. Therefore, it is recommended to have a high deposit to work with this robot. When working with it, it is important to have a stable Internet connection for smooth operation of the advisor. It can be found and downloaded in Internet, but the check of sources is required.

  • Platform: Metatrader 4.
  • Currency pairs: GBP/USD and others.
  • Timeframe: M30.
  • Operation mode: day-and-night.
  • Trading: Martingale.
  • Download free.

The Robot Ilan Dynamic uses RSI and CCI indicators and trades on the basis of Martingale algorithm. Ilan is considered to be a highly risky robot; whole calculation of the trader is based on the fact that the robot will be able to calculate the optimal ratio of profitable and losing trades and place orders correctly. It can be found and downloaded in Internet, but the check of sources is required.

  • Platform: Metatrader 4.
  • Currency pairs: GBP/USD.
  • Timeframe: M5.
  • Operation mode: day-and-night.
  • Trading: Martingale.
  • Download free.

Please note another set of robots and advisors that have been operating long in the market and have mostly positive feedback.

Free advisor Forex Setka Trader (download) for trading on pullbacks, as relevant, is used while high volatility or for assets with high volatility. Not effective enough on prolonged trends. The advisor trades based on Martingale algorithm, so the trader is shall withdraw the profit in due time.

Equilibrium (download) is a trend advisor trading by trend, opening transactions after correction. Considers to be a low-margin, but stable and safe robot. It trades based on signals of indicators, on timeframe М15 and H1, mainly on pairs CAD, EUR, AUD and GBP with USD.

Forex robot Urdala Trol (download) implements the averaging strategy and Martingale algorithm. The robot is fully automatic, considered to be appropriate for «deposit acceleration», but doesn’t fit well for continuous trading.

TopGun advisor (download) I designed for trading on currency pair EUR/CHF on 15-minutes timeframe, operates based on Bollinger bands. The robot considered to be more effective on a strong trend, can reimburse losses opening new orders in trend direction.

The operation of Pallada advisor (download) is based on information of indicators АDX, EMАS, Alligаtor, fractals etc. Assumption is that Pallada is more effective in purchase transactions on EUR/USD pair, but doesn’t bring the high profit.

Forex Hacked Pro (download) works on Martingale algorithms, may be used for scalping. This is the multicurrency advisor, can work on several pairs at the same time. Timeframe: H1.

Unimillion (download) is a free advisor, which operation is based on Martingale, but can work also on averaging basis. This robot is considered to be very demanding to right settings. Most efficient it is on EUR/USD pair with the timeframe Н1, it’s designed for day-and-night trading.

Of course, there are much more robots and advisors on the market, new ones are constantly appearing, they are loudly advertised and promise big profits. But none of the robots provides 100% guarantee of success. And if it does, then it’s a scam project. Any robot will work the more efficiently, the better a «master» of the robot knows trading.

 

How to choose an appropriate robot?

To choose a robot you need to determine the trading strategy and study it in detail to understand well what kind of robot you need (and whether it is needed), and how it will be necessary to configure the robot. A clear understanding of the strategy will allow you to understand whether the robot is already working correctly in demo mode. You need to pay attention to the currency pairs that the robot works with. Choosing an advisor, you need to pay attention that it is not tied to only one broker.

Trading robots have the record to be checked, for example, on the website https://www.myfxbook.com/ru/reviews/expert-advisors/10,1. If the whole story fits on the screenshot on the developer’s site, it is unlikely that the robot can perform the promised functions.

You should not use the robot without prior testing. Optimally, if the developers provide a period of free use, then you need to try to trade with it on a demo account. If free testing is not available, then you need to ask the developers for such an option.

 

Trading rules using robot

When trading on Forex market using robots and advisors, you need to follow a number of rules, the failure of which will inevitably lead to losses. First of all, you should remember that getting a stable profit in automatic mode is a difficult task that requires understanding of the process and the appropriate skills.

Before trading on real accounts each script must be tested. Perhaps this is the most important rule of trading with robots.

By the way, a robot that has successfully passed the test on a demo account may not work so effectively on a real account. In any case, you need to start trading carefully.

You need to start trading only with the minimum rates. This is actually the same testing, but «in field conditions». If the test was successful, you can gradually raise rates.

The trader should choose the right leverage at his discretion, here opinions are vary: some traders believe that you need to choose the maximum leverage, others say that you should never do it.

It is also necessary to learn the instructions for setting up the robot. And if it does not have any instructions, then you must not use such application. If not a high-frequency strategy is implemented, it is better to confirm the transaction manually.

At the stage of familiarization and training in the use of the robot, it is preferable to withdraw profits regularly and create a reserve. To trade using an advisor, you need a continuous, stable Internet connection without breaks.

There are a lot of websites in Internet you can download the robot from, one of the most popular e-communities – https://www.mql5.com/en/market/mt5/expert, here is a huge number of robots for collected, both for МТ4, and for МТ5.

 

Choosing a right broker

Brokers in general are concerned about traders using robots for trading. Robots trade longer and less unpredictably than traders; robots trade around the clock, respectively, the broker gets higher commission.

However, not all brokers welcome trading with robots, so before you start trading, you need to make sure that the broker will not block advisors or disrupt the transaction. Certainly the broker does not openly report about it, but if this happens, it will be too late. If you have doubts about the broker, you should read reviews about the possibility of automated trading on specific resources.

When choosing a broker, it is necessary to focus on some aspects: the broker is not supposed to have restrictions on the volume, timing, income of transactions, while there should be a high speed of transactions. It is also desirable that the broker has high liquidity. If a trader chooses a broker, he should take into account the trading strategy, as it affects the choice of the robot, and they are not universal for different brokers.

Among the brokers supporting the automated trading the following ones may be specified: Alpari, Weltrade, Forex4you, EXNESS, RoboForex (fig. 4, 5), InstaForex and others.

RoboForex: Forex trading robots

Fig. 4

RoboForex: what is a trading advisor

Fig. 5

 

Summary

So, a huge number of different robots and advisors are represented on Forex market. They are designed to optimize the activity of the trader. But the choice and effectiveness of the advisor depends on the trader’s skills. When choosing a robot, you need to focus on users` feedback and pay special attention to negative, but constructive feedback. It would be useful to see the ratings of robots.

You should not choose a broker at random, the main aspect in this case – it should not limit work of the advisor and should be compatible with a certain robot.


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