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Forex Indicators Forex Signals

How Do Forex Robots Actually Work?

What’s this about trading robots? Do they work? Are robots bad? Many questions are those that usually roll in the head when you hear the word “robot”. In the article I write today, I will try to expose what is this about Forex robots and everything that affects them, as well as some myths and realities. Let’s discuss…

How Do Forex Robots Work?

Before you start talking about how they work, do you know what a Forex robot is? A robot is nothing more or less than a few lines of code with clear rules of entry and exit to the market that are executed automatically. All this applied to the Forex market would simply be an automated strategy that buys and sells in the currency market. They are also called EA (Expert Advisor).

When I told you what it is, I explained how they work. But hey, can you make money with robots, or are they a scam? The performance or results of these automated strategies will depend on these previous strategies and their supervision, so if they are not profitable from the start, no matter how much they are automated they will not be. But if the strategy that is programmed is good, the result may be better.

Key Advantages

One of its great advantages is to be able to quantify the performance of the strategy that has been programmed. With a programmed strategy, you can perform a backtest and evaluate how that strategy has behaved before. If you have done discretionary or manual trading you will surely have tried different systems without having statistics or results of whether they have worked or not in the past. Come on, you’ve been playing with your money without knowing if what you were doing was profitable or not. Think for a moment, if you don’t quantify, how are you gonna know you’re making progress?

You need objectivity in making decisions when you make decisions. Otherwise, your results will be affected by your interpretation and here you have a good extra factor to make a mistake. How are you going to correct it? Systems or robots allow an objective market approach.

As you know, the accuracy of execution when trading is key. When you trade manually, you analyze wait for the moment and execute the order. When the process is automated, the order is released in less than a second without hesitation or analysis, or thoughts.

Another advantage more than considerable is that to execute the operations you do not have to leave your eyes looking at graphics for hours. You can do it uninterruptedly over time, even if you’re not in front of the screen. If you’re on a trip for a week or you have to do anything to stop you from being there, your operation may be running simultaneously. Be very clear, however, that they must be monitored and that the creation of automated systems requires time and work.

Closely related to the previous one, with robots you can trade in different assets simultaneously. Manually we are limited in this aspect. So you can diversify without problems.

And yes, the psychological approach. As you know, in this trading, psychology is important and it affects a lot. When the strategies are done in an automated way you reduce the psychological component quite a lot since your buying and selling decisions are not biased by your psychology. I say it’s reduced because you have to know that when robots have a negative or positive performance it will still affect you. But the main difference is that the results affect your psychology and not your decisions as it usually happens when operating in a discretionary manner.

Key Disadvantages

Although the advantages are clear, there are disadvantages. Most of the robots that are marketed on the Internet are based on martingales, grid. that reflect very good results and almost perfect performance curves but one day they break. Why? Because of the aggressive risk management rules they use. If you don’t think so, try downloading some for free and look at their results over a long period of time.

Why does this happen? Creating a good, cost-effective automated system is not easy. Programming a martingale or grid is not easy. So before you buy any robot, make sure they don’t use these techniques and that there’s no one hiding under a brand that can disappear tomorrow.

As for disadvantages when trading with robots something important is any technical failure that may arise and cause it not to run well. It is advisable to use VPS (a private virtual server) if this failure can affect your operation. I explain what a VPS is in this video:

Although it’s something that’s never happened to me yet, it is something that can happen. But it is as if the Internet connection fails. Also, failures or errors when programming the strategy (before executing it in real test it in demo or with very little capital).

Disadvantages are anything you might think might affect something that’s running remotely. Many such tasks already exist in different areas today.

What are the Limits of Robots?

We could say that robots do not work (always). I mean, there are systems that work perfectly for many years, but the vast majority die first. So? The solution is to have clear rules to disable these robots. If you don’t have an established plan, what are you going to do if your robot keeps losing money? Learn how to manage them.

Another limitation when using automated strategies is the over-optimization of parameters. What is that? Adjust your variables so that past results are very good. What’s the problem here? That we don’t know what’s going to happen on the market tomorrow, so it’s very likely that that robot won’t work well with new data when you apply it. Solution? Create a strategy and then validate it. Not the other way around. Remember that it is not about looking for perfect results, it is about getting real results.

Robots do not do magic, they have an added value with respect to manual trading that is quite clear, but it is something that you connect and you sit down to see how you drop the money. To take advantage of them is to be intelligent, but to ignore limitations is to be naive.

How to Choose A Forex Robot?

We talked about an important point earlier. Avoid using robots that apply aggressive risk management. If you’re going to choose a robot, spend some time contacting the person who created it, their background.

Don’t buy on pages you don’t know, in fact, I would tell you not to buy a robot as such but have expert supervision. As we’ve already seen, robots need to be managed. Be sure that you are able to learn to do all this by yourself in a simple way. You also have other alternatives in portals like Darwinex.

How to Program a Forex Robot

Today there are many tools to do so. From my experience, don’t get complicated and use those that allow you to start with a short learning curve. Some tips to create a good robot:

Set clear market entries and exits.

These things have to be made as easy as possible. You don’t need a thousand lines to make it work. Use the rule that your logic fits in a post it.

  • Always use stop-loss unless you don’t use any leverage.
  • Do it on assets that have liquidity so as not to pay a surcharge.
  • Schedule them to run in hours where there is volume on the market.

The Best Account Types

The most suitable accounts for trading with robots are the same as for manual trading. Accounts with low spreads, direct market execution, and adjusted swaps. Forex brokers are many, but with these features no longer so many. It is important that no use standard accounts or the behavior on the outcome curve you are going to get will be very different.

The Best Forex Robots

The best robots are the ones you know and create. Those that you can build in a simple way and also do different tests of robustness to know first hand their weaknesses and strengths.

For me, there are no good robots or bad robots. There are robots that work and there are robots that don’t work. I try to apply those who do and discard those who stop. I use more than a hundred strategies that I monitor daily and follow up. In this way everything is dynamic and although there are always strategies that do not work over a limited period of time, which is involved is that there are others that generate more than those.

Manual Trading or Robots?

Within the world of investment and trading, there are defenders of manual trading versus robots and vice versa. To say that manual trading doesn’t work seems very bold to me. In case a person hasn’t worked, why won’t it work?

After all, a robot can be a manual trading system that runs automatically. Provided that there are clear rules and a methodology, it is clear that both can be valid. Now, a forex robot has a number of advantages over manual trading that it doesn’t have. If we have the ability and the judgment that a person can have and the means to carry it out through robots, why not use both?

Categories
Crypto Guides

Introduction To ‘Cryptohopper’ – A Reliable Crypto Trading Expert Advisor

Introduction

Cryptocurrencies are intensively volatile. The volatility of the currency is a matter of concern, but in the case of trading with cryptocurrency, it’s quite advantageous. In the crypto trade, you can invest when the market value is declining, and you can retrieve your amount when prices are on hike.

However, it requires experience to become an expert in reading and analyzing this market’s up-down trends, so that you can invest at the perfect time to expect maximum returns. To predict this market flow for investors, trading bots are introduced with automated algorithms in the industry. Today in this article, we will be discussing one such trading bot- Cryptohopper.

Understanding Crypto Trading Bot

Crypto bots are cloud-based computer programs to host cryptocurrency trading. It provides idle tools to beginner and advanced traders. At the right time, it can automatically buy and sell cryptocurrencies. Users can simply connect the bot with their cryptocurrency exchange, and then it can smoothly trade on their behalf. For successful trading, it is necessary to rely upon complicated probability estimation for predicting the market trends, and a bot can calculate this much faster than a human brain. 

What is Cryptohopper?

The cryptocurrency industry is offering various services and tools to traders to elevate their success rate. Cryptohopper is one such tool that can simplify the crypto-trading ecosystem. It’s a trading bot that has been customized as per the requirements of users and can also provide market technical detail.

Earlier, a user would have to spend a lot of time in front of the computer screen to trace market flow all day, but now the fully automated bot can monitor the trade 24/7 on behalf of the users. To ensure high output, it can perform backtest for each iteration and can optimize decisions based on the current situation. 

Why do you need a bot like Cryptohopper?

In the cryptocurrency trading world, every second matters a lot. So, to make life easy and to earn more, traders can make use of a crypto trading bot like Cryptohopper to make every second count. Let’s have a look at how Cryptohopper can help in various domains of crypto-trading.

Objective trading 

The trade will be executed entirely based upon the data analysis. You don’t need to panic about the buying or selling process because the trade activities shall be evidenced without any involvement of stress or emotion.

Social trading 

Cryptohopper directly subscribes to market signalers who analyze the trade and suggest how to raise the value of your coin. As a result, you can get appropriate information for trade optimization.

Simultaneous trading 

It operates and manages all your coins simultaneously. It can keep track of all price details and sell your coin exactly at the target profit scale that you have set.

Intuitive tools 

This bot has the potential to keep the users at the top market position. It notifies with alert in advance about the trade opportunity to sell the declining coins and to repurchase the coins at a lower price.

Cloud-based platform 

It remains 24/7 online in the cloud. It means you don’t need to keep your device ‘on’ always to track your coins. You can log in to your bot account anytime, and you will get a notification about the latest market updates. 

Conclusion

The ability of Cryptohopper to provide users with high returns in cryptocurrency trading is something to look at. The traders won’t feel the need to rely on a computer screen as this bot can automatically trace the trends and take the necessary steps that have been fed. It can be easily used without any coding background and can also be connected to any global crypto exchange without incurring any trading fees.

Categories
Forex Service Review

Advanced News Trader EA Review

Advanced News Trader is an Expert Advisor that was added to the mql5 marketplace by Nurudeen Amedu in December of 2016. The EA has not received any updates since being launched.

Overview

This EA focuses on news trading. Markets move because of news, which makes news trading one of the most effective methods for short-term movements, especially when you’re looking at currencies. The Advanced News Trader follows a system that provides 2 separate strategies for news trading; Deviation and Strategy. Through Deviation trading, the trader looks for the news release he is planning on trading and enters the deviation for the buy and sell signals. Straddle trading is a more common, advanced method that will allow traders to straddle if a deviation is reached.

The EA performs a currency strength check before making entries, implements trailing stops, allows hedging, BreakEven, and supports Martingale. The product comes with a user manual and a news-deviation trigger sheet that includes major news releases along with their buy/sell deviations. It is compatible with the highly-popular MetaTrader 4 platform and only works with currency pairs.

 

Service Cost

The developer provides a few different pricing options: traders can rent the EA at a rate of $50 USD for 3 months or $100 for one year, or buy the product outright with 5 activations for $250. The overall price is a little high, but the yearly rate isn’t terrible. Fortunately, the author makes free demo accounts available, so this may be the best way to test out the EA before deciding to purchase it.

Conclusion

The Advanced News Trader EA implements two different strategies that support news trading while allowing hedging, Martingale, and other functions. It is best for identifying short-term movements based on microeconomic releases. If you’re interested, you can rent the product for $50 USD (this is the lowest price), but there isn’t any feedback regarding how well this EA has worked for others. The comments section is made up of users asking the developer questions back and forth, but we do see that the developer is very responsive and helpful.

As always, a good strategy, reputable broker, and effective risk-management skills are crucial to making profits, regardless of how well any EA performs. If this product fits with your ideas, then it could very well be an effective tool to add to your arsenal.

This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/19233

Categories
Forex Service Review

Netsrac Correlation Trader (NCT) EA Review

The Netsrac Correlation Trader is currently found on the MQL5 marketplace, it is located under the Experts section of the site. We have also provided a link to it below. The expert advisor was created by Carsten Pflug, it was first uploaded on the 20th of May 2019, it has had a number of updates, the most recent update was on the 22nd of January 2020 and is currently at version 3.20.

Overview

Netsrac Correlation Trader is an expert advisor that can be used to trade positive and negative correlated currency pairs with hedging, it can be used with the MetaTrader 4 trading platform.

The main features of the expert advisor:

  • It looks for positive and negative correlated pairs
  • It shows you a signal, if the correlated pairs are not in balance
  • It can “autotrade” some or all correlated pairs with your setting of time frames and signal-values (handle with care)
  • It can set the correct lot size to have pip value and daily range based optimal hedge trades
  • It can be your single tool to support your discretionary trading of correlations

The expert advisor can be used on any timeframe when using the signal features of the EA, the smaller timeframes will require more manual intervention than the larger timeframes, the M30 timeframe is best suited for automated trading.

Service Cost

The expert advisor can be purchased for $139, this will give you unlimited and limitation free access to the expert advisor. There is also the option to rent the software on a monthly basis, this will cost you $34 per month to use it this way.

There is a free demo version of the expert advisor, the developer does not think the demo version will give you much as it only works with two pairs at a time so it cannot fully function, the developer of the expert advisor suggests using the month rental rather than the demo version as it will give you a better understanding of how it will work. Having a half functioning demo isn’t really helpful or the intended purpose of a demo version.

Conclusion

At the time of writing, there are 8 reviews, they are all very positive and have given the expert advisor an overall rating of 5 out of 5.

“I really like correlation trading, and this EA is a great tool. The interface is well thought out and easy to use, and Carsten is quick to respond to questions and rectify problems. So far, positive results on my live account.” – A 5-star review.

“Good system, easy to use. With layouts that are easy to understand And good support, When start making profits, therefore ensuring Thanks to the development team“ – A 5-star review.

“Seems nice product. The author is great and supportive. Will re-evaluate later if needed.” – A 5-star review.

So the reviews are all looking good and positive, the developer is also replying to a lot of the comments which shows that they are actively supporting the expert advisor. Even with all of the positive reviews, be sure to download and try out the free demo version, while it may not function fully, it will at least give you an indication s to how it works and you will be able to be sure that you can get it set up and running properly before you make a purchase or a rental.

This Forex Indicator is currently available in the MQL5 marketplace: https://www.mql5.com/en/market/product/38813

Categories
Forex Service Review

FX Multi Recovery EA Review

FX Multi Recovery can be found within the MQL5 marketplace under the heading of Experts, it was uploaded to the marketplace by Keisuke Tsutsui, it was uploaded on the 15th of March 2020, it has had a couple of updates, the most recent update was on the 10th of April 2020 and it is currently at version 1.21.

Overview

FX Multi Recovery is an expert advisor that as created to be used with the MetaTrader 4 trading platform, its main purpose is to act as a recovery system for when a trade goes in the wrong directions.

This sounds fantastic, but then within the first sentence of the description it has been described as a standard martingale system, this is something that you should be very cautious of, the martingale system is a system that can cause a lot of drawdowns. When the markets go against you with a trade of 0.01 lots, the EA will then open up another trade going in the same direction at 0.2 lots, if the markets continue to move against you a thrid trade the size of 0.3 lots will open and this will continue until their the markets reverse, or your account blows, it is a very risky strategy and one that many would advise you to avoid.

There are two different martingale modes that come with the EA, the first is a method that looks at the last two trades, it will close out the last two trades rather than the whole lot, the aim of this is to gradually reduce the lot sizes used as the markets come in. The second method is a loss cut mode, this is where the maximum number of trades have been reached if it continues the wrong way, the last trade is closed a new one is opened at the same lot size.

There are some additional functions and parameters that come with the EA, these include magic numbers along with filters for them, min distance of steps, the recovery strength, maximum number of orders, and more.

Service Cost

The FX Multi Recovery EA can be purchased from the marketplace for a one-time payment of $100, this gets you up to 10 activations of the software and with no other limitations If you would prefer, there is also the option to rent the EA, this can be done on a monthly basis which will cost $10 per month or for three months it will cost $30. A free demo version is available to try out, this is limited to only being usable with the strategy tester within the MT4 platform and cannot be tested on live accounts.

Conclusion

The EA does not have any reviews or ratings from its users at the time of us writing, so we do not know whether other sare finding it useful or not. There is one comment but it is from the developer offering some recommended settings, so while we do not know the quality of support that will be on offer, we do at least know what they are still actively supporting the EA.

This Forex Indicator is currently available in the MQL5 marketplace: https://www.mql5.com/en/market/product/47288

Categories
Forex Service Review

NightWalker EA Review

The Night Walter EA can be found within the Experts section of the MQL5 marketplace, we have provided a link to it below. The expert advisor was first uploaded to the marketplace on the 5th of March 2020 by Roman Lengert, it has had a number of updates, the most recent update was posted on the 16th of March 2020 and it is currently on version 4.1.

Overview

The NightWalker EA was created for the MetaTrader 4 platform, it is a multi-symbol mean reversal system. It does not use the martingale or grid systems and uses fixed stop losses for each position. The expert advisor will only trade during the second half of the New York session and the start of the Asian session.

The main requirements needed for the expert advisor to function well:

Symbols:

Time frames: M1

Min Deposit: $300 to $1,000 (smaller deposits mean more risk).

Historical Drawdown: $83 per 0.01 lots.

There are a number of different parameters and settings available, some of them include the symbol suffixes, lot types, lot sizes, fixed lots, max spreads, max number of positions, equity per step, lot er step, weekdays to trade, currencies to not allow on Friday, and many other options are available too.

Service Cost

The expert advisor can be purchased outright for $600, this will give you unlimited access to the EA without any limitations. If you do not wish to purchase it outright, you can also rent it, you can do this on a monthly basis for $50 per month, or $120 for three months or $220 or6 months. There is a free demo version available, but we do not know wha the current limitations of the free version are.

Conclusion

At the time of writing, there are currently 13 reviews available, these are giving the expert advisor an overall rating of 4.5 out of 5.

“I waited a long before the review trades 90% not profitable in aaafx. The developer although it is excellent, very helpful. The problem is that the first hour of Asian session has now very high spreads something that didn’t happen some years before.” – A 3-star review.

“Since more than 2 months now this EA is running on my live accounts and it’s durable profitable with a very good risk management. The support of Roman is great and he is very helpful. So I give a 5-star recommendation as I’m convinced it’s a great EA not just for now but for a long time.” – A 5 – star review.

“I think this is the best EA in mql5, I used it for more than one year and got a good result. and the author is very helpful. One more I use NY Close Scalper together just like the author in his signal. Very good job!” – A 5-star review.

So the majority of the reviews are very positive, there are also 200 comments, Roman (the creator) is replying tot eh comments in a very prompt manner which is a good sign for the possible support that you will receive. Due to the high price of the EA, we would highly recommend that you download the demo to test out and also ask the developer any questions that you may have, this was you can be sure that it is right for you before making a purchase or rental.

This Forex Indicator is currently available in the MQL5 marketplace: https://www.mql5.com/en/market/product/24708