For the uninitiated, a forex robot (also known as an Expert Advisor, or EA) isn’t as fancy as it sounds.
When I first heard the term I had visions of an intelligent machine capable of outsmarting my Roomba at a game of chinese checkers.
But… it’s not.
A forex robot is just a piece of software that trades automatically based on a set of preset conditions.
Let me put that into context for you. If we were to create a basic technical trading strategy using the RSI indicator.
Say, we to enter a trade every time RSI oversold or overbought on a particular chart. Everytime RSI hits a particular number we want to buy or sell and set an accompanying take profit and stop loss level.
Instead of sitting watching the charts for hours on end, the software (or your Roomba…. I mean robot) can do it for you.
All you need is some basic MQL5 coding knowledge to get started. Alternatively, hire a coder, probably someone in Eastern Europe on Freelancer.com or Upwork.com for a few dollars.
It’s that easy.
This is a simple strategy to give you an entry level understanding. The hard part is making money from your algorithm.
If you’ve found this blog post on Google, I’ll assume you’re in the midst of purchasing, or trading with an EA or robot provided by a 3rd party. Probably with a promise of untold riches, all you need to do is turn it on and wait to collect the cash.
Am I right?
This is where I burst your bubble…
The vendor that sold this piece of software lied to you.
You aren’t going to own a Lamborghini with accompanying bikini-clad blonde from this magical software. You would have been better off buying a Roomba (at least you’d have a nice clean floor.)
The truth of the matter is, you won’t make money long-term trading with an EA or robot.
Think about it for a moment.
Do you really think there is a piece of software out there which you can buy for a few hundred dollars that’ll outsmart the market for years to come?
These robots/EA’s are also what’s known as black box system. We don’t know how they’re built or why they work. All we can do is attach it to our charts and cross our fingers.
The only people that make money out of forex robots are the vendors who sell them. So, to use a trading system make sure you ask the vendor how it works or tell him to send you a video on how it works. Visit our market with how to videos on how each EA works.
Having said that, there is a place for automation in your trading. But in my experience, it only works with manual oversight.
You MUST understand the reason the market is moving and couple this knowledge with a technical overview.
There are no shortcuts to successful trading.
You need to put in the effort if you expect to succeed. If you have the passion and dedication will eventually succeed and set yourself up for financial independence just like I have.