Is Trading with a Forex Expert Advisor Profitable?
A Forex Expert Advisor (also known as a Forex robot) is a piece of trading software that, among other things, executes trades automatically in the Forex market based on a set of predetermined rules. Visit multibankfx.com
Thousands of people around the world use Forex EAs every day in the vain expectation that they will uncover the “Holy Grail” winning trading combination and become filthy rich.
Consider how easy it would be to end global poverty if ordinary people could buy a $20 Forex robot, deposit $1,000 with an FX broker, connect the robot to the trading platform, and let it trade automatically, becoming wealthy in a year or two before dedicating their lives to charity.
The hope that a Forex robot can make consistent and repeatable profits on our behalf is still science fiction at best. Of course, there is a plethora of software, scripts, and programs that can give traders an edge in Forex trading operations; but we are still quite a way off from being able to leave entire operations to trading robots.
In this post, we’ll look at the truth behind the Forex Expert Advisors that are now on the market, gaining an understanding of how to spot blatant trading scams and, more importantly, how to avoid falling into the traps that so often befall inexperienced traders.
As well as discussing the main features and benefits of the MetaTrader platform, we will examine the potential applications of artificial intelligence for traders.
The Purpose and Operation of Forex Expert Advisors
In theory, you are being deceived if you are being sold a Forex Expert Advisor that can reliably generate favourable trade results every time. Trading software may not be useful in this case, but it doesn’t imply it can’t be. A Forex Expert Advisor is a computer program that can analyse market data and make trading decisions on its own. A fully autonomous piece of software that can perform Forex trading, conduct technical analysis, and direct investments on our behalf.
The widespread fallacy and deeply held idea that traders may locate a Forex EA capable of trading independently and making systematic profits must be dispelled quickly.
Although automated trading has greatly increased in the foreign exchange market for large financial institutions, investment banks, central banks, and other such organizations still rely heavily on highly paid skilled traders.
This should give us some idea of how far off the day is when computer trading programs take over the markets, even though billions of dollars have been invested in research and development. However, for the ordinary investor on a smaller scale, there are programs and systems available that can aid and automate, at least in part, the forex trading activities.
So, we’ll have a look at the various Forex robots that may be readily incorporated into a trading account and are currently available to regular investors.
Expert Advisors on MetaTrader: What Are They?
Expert Advisors for MetaTrader are scripts that can execute a variety of tasks, from simple analysis with the help of technical indicators to fully automatic trading that nearly always adheres to the user’s predetermined guidelines.
Expert Advisors can only be used with the MetaTrader trading platforms (MT4 and MT5), making them accessible only through Forex firms that support such platforms.
Automatic Trading with Massive Profits, Promising to Use MetaTrader Expert Advisors (EAs) That Are Not What They Seem
We feel it’s important to let you know that many of the thousands of Forex EA robots available for MetaTrader, promising profits based on hidden algorithms and trading parameters, that you will inevitably come across online are likely to be ineffective.
Be wary of systems promising unfathomably high returns, as these are almost certainly fraudulent. As a matter of fact, most of the time they are criminal scams set up by people whose only interest is in stealing from you.
Is There Somewhere to Purchase a MetaTrader Forex Robot?
Many Forex EAs are for sale, and to be clear, we have nothing against this. However, it is important to highlight the qualities of robots that are worth your money, and in particular, the type of cash you should consider using for this automatic trading software.
The best site to purchase a MetaTrader Forex EA, a custom-coded script that can, for the most part, carry out operations on its own, is the MQL market, the home of the MetaTrader platforms. Of course, not all auto trading systems are created equal, and it would be ridiculous to believe that any investment would automatically generate a stream of 100% winning transactions.
Traders on the lookout for a Forex robot can only judge the quality of the scripts and Forex EAs systems released and for sale on this site by reading the reviews and analyses provided by the platform’s coders and other users. Should you believe the reviews? That’s not the case.
Traders can test these scripts and Forex robots without risk by opening a demo account in MetaTrader 4 or MetaTrader 5 with a trustworthy broker that doesn’t manipulate the pricing on demo accounts, and trading in a manner identical to that of a real account.
Regarding Forex robots and other EAs sold online, even if the website selling those items appears reliable and the people behind it appear to be real experts, you may be dealing with a potentially very dangerous system, especially if the website selling such products makes claims of huge profits and sells it for 20 dollars.
How much money would you be prepared to put up if a Forex robot was guaranteed to make even inexperienced retail investors millionaires? Twenty dollars?
Don’t rush into anything; take a moment to reflect. Why would the seller guarantee you’ll become a billionaire thanks to their product’s high success rate? We’re not just talking about the $20 robots; these also include the $500 and $1,000 Forex robots.
Is It a Good Idea to Invest in a Forex Robot?
The foreign exchange (Forex) market is one of the most volatile and unpredictable financial markets to trade in with any degree of success for retail investors, and forex robots’ analytical powers are still well below those of humans in this market.
And that’s not even because human traders would inevitably lose both their trading account balance and the initial investment in the robot. In conclusion, there is no foolproof way to make money, and investing in a Forex robot to help you break into the FX market is, and always will be, a huge gamble.
The best Forex robots out there aren’t programmed to make traders quick cash; rather, they’re designed to facilitate trades. There are times when automation can do a better job than a human, such as when you want to close all open orders for a single currency pair or your whole trading account.
For routine chores or those that call for immediate response, such as establishing default stop-loss and take-profit levels for freshly started positions, they can be invaluable (that could be, actually, very useful for news traders).
However, they will never be able to successfully trade in your place, guarantee a trader’s profits, or act humanly. If this were true, huge investment banks would not waste millions of dollars annually on high-priced currency traders and analysts.
Why put your faith in a Forex robot selling for $50 that promises hindsight trading and enormous returns if even the best investment institutions have not been able to replace humans with powerful auto-trading software?
One Last Thing to Think About: Forex Auto-Traders
In conclusion, we believe that Forex robots are only beneficial to the ones marketing them and to those who prey on the aspirations of the naive.
Presently, the only risk-free use of automated Forex trading tools like robots and EAs is in the setup of pending orders and stop levels. There is no way a Forex robot could be built to master such a complicated market because of the market’s liquidity, decentralization, and daily turnover of billions of dollars, all of which are managed by large institutional participants.
Free or paid, the reality remains that you shouldn’t put too much stock in software developers claiming to have the perfect automatic Forex robot that can do the trading for you, especially if they promise to be able to make you rich in this lifetime.
Whoever suggests these concepts and makes a living off selling them to novice or desperate traders must be viewed as a con artist.