Currency pairs in the forex trading market exhibit continual fluctuation due to economic and geopolitical events because the market moves quickly. Retail traders find it challenging to stay current with the fast movements of the market.
This is when forex robots or forex trading bots become useful. Forex robots function as automated trading software which continuously monitors market conditions to execute trades for traders during all hours without experiencing fatigue.
What Is a Forex Trading Robot?
Before examining particular forex robots let us understand what they represent at a fundamental level.
A forex robot functions as an Expert Advisor or EA and operates as a computer program which uses predefined trading rules and strategies to analyze market data automatically before executing trades. It is used especially for beginner traders to read the forex market and analyze the status of currencies.
The forex robot market offers three primary categories.
- Signal-Generating Robots track market activities and produce buy and sell recommendations using established rules. After traders receive signals from forex robots they must enter trades by hand.
- Trade-Copying Robots function by replicating transactions made by successful forex traders. These systems automatically execute identical trades without requiring any human involvement.
- Automated Trading Robots represent the pinnacle of forex robot technology because they can independently both generate trading signals and execute trades without requiring traders to intervene manually.
Forex robots that fall within large categories can be divided based on their specific strategies and algorithms including trend-following and scalping. The performance of a forex robot depends entirely on the trading strategies it employs.
Robots with strong design principles and strategic algorithms can surpass human traders in performance across extended timeframes.
At this point, the experience and analysis skills of forex traders should not be ignored, of course, but professional traders can combine their own analysis skills with the data of these robots to create ultimate forex trading strategies.
Types of Forex Trading Robots
Different forex trading robots work to give different data to implement various strategies. Analyzing these results will help you increase your profits in forex trading investments.
We will now examine several widely-used forex robots along with their primary characteristics.
- MetaTrader Experts are trading robots which third-party developers create exclusively for MetaTrader 4 and 5 trading platforms. Customers can buy robots from developers' websites or through the MetaTrader Market. Customer pricing for these products varies widely and can be as low as zero or reach several hundred dollars.
- Traders use the popular Zulutrade robot to copy trades from top-performing signal providers automatically. The monthly subscription fee traders must pay varies according to their account size. Minimum deposit is $250.
- 3Commas provides a comprehensive solution for both creating and executing algorithmic trading strategies in a single platform. This platform provides a simple bot-building interface along with tools for backtesting trading strategies. Pricing starts at $99/month.
- First developed for cryptocurrency trading, Cryptohopper now also facilitates forex trading. It provides signal-generating and fully-automated trading bots. Fees are $19-99/month based on features.
- PineScript serves as a cost-free trading robot platform that functions within the TradingView environment. Traders have the option to create personal trading scripts with PineScript or to implement bots shared by the community. No monthly fees.
The following text describes some of the primary platforms for forex robots. The right choice depends on your available budget as well as your technical expertise and desired robot functions.
The deep liquidity available through BlueSuisse enables robots to execute orders smoothly. To use these robots and get tips on your strategies, you need to open an account on a professional and accessible forex trading platform.
With its user-friendly interface and advanced options, BlueSuisse is a formation that hosts different traders from all over the world. You can create your online forex account from BlueSuisse immediately.
What Does a Forex Robot Cost?
The cost of forex robots fluctuates widely according to platform type and offered features in addition to how the robot will be utilized. At the same time, different features to be purchased within the platform may be subject to extra charges.
Here is a brief overview:
- MetaTrader Experts offer pricing which begins at no charge and reaches up to several hundred US dollars for each robot. One-time purchase.
- Signal Generating Robots offer subscription prices that run from free to a monthly cost between $10 and $50.
- Recurring fees for Trade Copying Robots depend on the percentage of profits they generate which ranges between 30% and 50%. Minimum deposits apply.
- Automated Trading Robots require an initial purchase fee that ranges between $100 and $500 for each robot. Monthly hosting/service fees may apply.
- Basic accounts for Robot Development Platforms begin at $20 per month and go up to $100 per month. Advanced platforms charge $500-1000 per year.
- Standard server VPS Hosting costs between $5 and $20 per month. More powerful servers cost $30-100/month.
Popular trading platforms that deliver advanced features typically have higher price tags. Consider costs carefully against potential returns. Validate the profitability of a robot through testing before initiating live trading operations.
Choosing the highest priced platform when creating a forex trading strategy may not always yield the most positive results, so it is wrong to directly choose the most expensive option.
Beginner forex traders may turn to more budget-friendly robots as they will need fewer features in their initial process.
Does a Forex Trading Bot Work Constantly?
Forex robots provide the significant benefit of continuously monitoring markets and executing trades throughout the entire day without taking breaks.
Do forex robots manage to trade continuously and what potential problems could arise?
Theoretically speaking, well-designed automated forex robots can trade without interruption throughout all hours of the day because they meet two specific requirements.
- The robot operates on a trusted VPS server which maintains 99.9% uptime. VPS providers with strong reputations such as Amazon AWS and DigitalOcean offer dependable server solutions. ensure servers are always online.
- The robot's programming is sufficiently strong to manage any market scenario without experiencing crashes or bugs. Developers must thoroughly test robots using backtesting and simulations.
Despite best efforts, unplanned outages may still happen during server maintenance or internet connectivity issues and when unexpected market volatility causes some robots to crash. It's impossible to achieve 100% uptime.
For this reason, we always recommend that traders have a backup plan. Being minimally affected by possible negative events is all about determining your strategies well and managing your risk correctly.
Forex robots require reputable platforms with dedicated servers and expert support teams to operate continuously for 24x7 trading. The infrastructure has been designed to enable robots to operate without interruption throughout the entire day and night.
BlueSuisse is an independent platform where you can manage your forex trading strategies according to your own account and the currencies you want to exchange.
You may not be sure whether to enter forex trading yet, you can create your demo account with BlueSuisse in just a few minutes and take a look at the market and platform.
How to Use a Forex Trading Robot?
After gaining knowledge about different forex robots along with their pricing structures and capabilities we can proceed to learn how to implement them for automated trading using BlueSuisse.
Here are the key steps:
- Research available platforms to select a robot that matches your trading strategy along with your budget and skill level. Consider factors like reviews, features and support.
- Utilize a demo account to backtest the robot with BlueSuisse for multiple weeks or months and evaluate its profitability across various market conditions without financial risk.
- Adjust robot parameters such as lot sizes and take profit/stop loss levels after analyzing backtesting results to enhance live trading performance.
- Fund your BlueSuisse live account after validating the robot's effectiveness. Incorporate correct risk and money management practices.
- Maintain daily monitoring of the robot's profit and loss statements together with its drawdown and trade performance. Adjust the robot or stop its operations according to market performance requirements.
- Implement automated account management by employing risk management tools such as trailing stops and profit targets to create a hands-free trading operation.
By implementing forex robots correctly and maintaining oversight their performance can be enhanced through BlueSuisse's advanced infrastructure and platforms.
Advantages and Disadvantages of Using Forex Robots to Trade
Forex robots function as any automated forex trading system by providing both benefits and inherent limitations.
Below you will find important advantages and disadvantages that require consideration.
Advantages:
- The trading robot can operate continuously throughout the day without experiencing fatigue or emotional responses.
- Eliminating human mistakes and biases through automation enables the generation of steady profits.
- Diversification allows trading across multiple currency pairs and different strategies at the same time.
- Convenience of hands-free trading via automation.
Disadvantages:
- The process of creating and evaluating initial trading strategies demands both time investment and programming expertise.
- Different market conditions may render past performance an unreliable indicator for future results.
- Automated trading systems may stop functioning properly when they encounter software bugs or system crashes.
- Automated systems cannot replicate human judgment or decision-making capabilities across every situation.
- Illegitimate backtesting processes lead to overfitting risks in trading strategies.
- One-time costs and recurring hosting/subscription fees apply.
A well-built and extensively tested forex robot on a reliable platform like BlueSuisse can serve as a valuable aid for traders even though robots cannot eliminate risk completely.
Through ongoing experience and continuous refinement traders can unlock maximum potential for their systems as time progresses.
Begin your journey of automated forex trading with robots by opening a demo forex account with BlueSuisse today. Our platform offers support for every major trading robot while delivering consistent and dependable infrastructure for continuous trading every day.
Our research team and account managers are available for any additional questions about your robotized trading experience.