Would you like the idea of trading the forex market completely hands-off, without the need for you to be physically involved? There you have automated trading. With the use of a good Forex Expert Advisors (EAs) coupled with a cheap Forex VPS, you can well be on your way to profiting from the forex market almost stress-free. This piece covers the top of them and the criteria to watch for selecting one, while also touching on the use of a forex dedicated server.
Retail trading the currency market is one of the most convenient ways to earn money in 2020. However, the traditional trading method has always been for traders to learn the ropes of trading by themselves – understanding technical and fundamental analysis, trader psychology, risk management, trading strategy development, and much more. All of those can be overwhelming. They also do require a considerable (read: lengthy) amount of time to gain at least some level of mastery over.
However, advances made in technology over the years, especially in artificial intelligence sub-sector, have made that more realistic. With a Forex Robot, you can bag good profits from the markets without being actively involved.
Forex Robots and Forex EAs, etc. – What are they?
Although they bear close similarities, they are not precisely the same. Both Forex Robot and Forex EA are programmed software designed to help you trade the forex market automatically, without you being involved. However, the Forex Expert Advisor (EA) is designed to “scan” the market based on pre-programmed criteria and locate trading opportunities without you actually trading. It helps to find good trade entries but does not execute trades for you; instead, you have to make the trades yourself. NOTE: it is an “advisor.”
On the other hand, the Forex Robot does the trading analysis as well as also automatically places the trades. Neither is better than the other: it is up to your preference. While some traders can trust software to execute trades for them, others still want to be in control of their trading and to be able to cross-check their trades before they are executed. Pretty simple. right? Nevertheless, in recent times, a good number of the two are being designed in a way for you to have the options of using an EA or robot, or both at the same time.
Thus, both terms are usually used together or interchangeably.
The Forex VPS – What’s it needed for?
When selecting a Forex Robot, you should also think about using a good Forex VPS. Do you know why you should run MT4 with VPS? A VPS is short for Virtual Private Server, a tool that hosts a copy of a computer’s operating system, making it easy to access from any other computer. It is a server – a private one that does not require physical space because it is “virtual.’ When you purchase any Forex Robot software, you will have to host it on the platform you will be using to trade.
The trading platform itself will be domiciled on a computer or whatever device you choose to use to trade. However, there are limitations to this. For the software to keep running and keep making trades, your trading platform must always be on. For that, your computer must also always be on and with a good internet connection. Otherwise, you lose out on excellent trading opportunities when any of these is not functioning.
But realistically, is it possible to keep the platform – and therefore your computer and your internet connection – always on? Of course not. This is where your virtual private server will come in. With the forex VPS, your Forex Robot can keep running whether your trading device or internet connection is available or not.
Additionally, the forex VPS grants traders the freedom to access their trading from any other device, anywhere. We do know that not all brokers offer mobile and web-based trading platforms. This makes it difficult for a trader who trades on his desktop to monitor his trades while away from his trading desk. However, your forex VPS will allow you to access your broker’s trading platform from any device, anywhere.
As a result, with it, you can travel anywhere across the globe without your laptop or desktop and still control trades! But you must do some research as to choosing a reliable forex VPS provider as not all VPS providers are credible to use.
How to Choose Your Forex Robot in 2020
There are many Forex Robots out there, and not all can be said to be credible. That is, you will find a lot of them that do not work at all. There have been tales of unsuspecting traders losing huge sums of trading capital using substandard ones. Does that mean you should avoid using them? No!
Considering the number of benefits you stand to gain from them, they are worth using and can completely relieve you of the stress of having to make trading analyses yourself. It just means you have to be knowledgeable in the art of selecting the right one for yourself.On this basis, there are certain features to look out for in selecting a Forex a Robot, as you will find below:
1. How and Ways to Trade
Every Forex Robot applies different strategies to arrive at trading opportunities. You must be aware of the strategy adopted by your desired one, to know if you are okay with it. For instance, some like the Exon Power Trader purely trade economic news. Bearing in mind the massive volatility that comes in the wake of such news, some traders might not be comfortable with this system, however.
2. Average Earning
This is what traders will be most interested in. You should check the average profitability rate of your Forex Robot over time. However, we suggest that you spread your check over a lengthy time.
3. Holding Time
This is not a rule of thumb. But you don’t want one that holds trades for 3 weeks, neither do you want one that executes and closes trades in the space of 60 seconds or less. Nevertheless, we believe you should look at the average length of time for which the Forex Robot holds trades to know if it is in tandem with the type of trader that you are – scalper, day trader, swing trader or position trader.
4. Drawdowns on Account
How much drawdown your chosen one has experienced over time is a factor to consider. Drawdown is the reduction that happens to your account when you lose a series of trades. For instance, if you have a $2,000 trading account, and after losing some trades, your account gets depleted to $1,700, it can be said that you have experienced a drawdown of 15%.
Drawdowns in your trading account can happen to your equity or balance. Equity is simply the total amount you have in your account when you still have open trades. Balance is the amount in your account when you have no ongoing trades.
Why is the issue of drawdown so important? It is quite simple – you don’t want a Forex Robot that will dip your account so much in negative territory that it takes so much effort to revive it to break-even. Drawdowns of 40% and above are not pretty good numbers.
5. Subscription Costs
Of course, how much it costs to start making use of the Forex Robot is also a factor. Subscriptions typically will be paid monthly, with options for an annual subscription. Although the amount you are willing to pay for a robot is dependent on your financial status, you really would not want to sign up for one at a cost that is greater than your trading account balance.
We really will advise that you go for annual subscriptions because they usually come at discounted rates. There are also others that only require one-time payments for permanent access.
6. Use MT4 or MT5
This goes without saying. The MetaTrader4 has been the most used trading software for decades, and rightly so. As such, every forex software service – broker platform, indicator – must be designed to be integrated into the MT4 or the new MT5. Although this is still a matter of choice, it just makes sense for your chosen robot to possess MT4/MT5 integration.
7. Average Number of Trades
While this is also not a blanket rule, it is still an essential factor. There is the popular advice to traders not to overtrade. This is good advice, and we feel that it should apply to software too. If your Forex Robot makes too many trades, then it may not be that good. This is because realistically, money-making opportunities are not always very frequently available in the market.
8. Minimum Allowable Capital
Trading bots do require traders to have some specified minimum amount on any trading account they will be applied. The most common minimum deposit you will find around is $100; however, certain ones require you to have as much as $5000 in your trading account.
Top 10 Forex Robots in 2020
After diligent research, here is a list of our best 10 Forex Robots that you can find in 2020. Below is a table that compares them using verifiable metrics:
MT4 or MT5
GPS FOREX ROBOT 3
ECON POWER TRADER
FOREX KORE EA
FOREX DIAMOND EA
FOREX INCONTROL REBORN EA
DRAGON EXPERT FX
FX ADEPT EA
Tips on Using Forex Robot Providers
No matter the Forex Robot provider you choose to go with, we advise that you still observe some tips in making use of it. Those tips include:
– Subject it to tests
After subscribing to your Forex Robot provider of choice, don’t apply the software to your live trading account right away. Use a demo account first, and sustain this for like a month. You will understand how it works, the strategies upon which it was built, and much more, without exposing yourself to any risk whatsoever.
– Be Patient
Different trading bots have different strategies programmed into them. As such, some perform extraordinarily well under some market conditions and fail terribly under others. You have to patiently see the software through different market conditions by testing it for a considerable amount of time before making any conclusions.
Similarly, once you’ve subscribed to one provider, stick to it. Traders make use of multiple ones. That is counter-productive and may lead to heavy losses.
Making use of Forex Robots is a great way to trade. However, not all are worth trying. Here, we have outlined some of those we think are the best. Nevertheless, do your research, consult forex blogs (check www.myfxbook.com) and chat rooms, and read up reviews, before making up your mind.