Do Forex Trading Robots Really Work?

What is a forex robot?

Forex robot or forex Autobot or forex bot is a trading script that automates the trading decisions on the currency trading platforms. The Forex Robot is a computer-based program, and it is based on a set of Forex trading rules. It will help you to buy or sell the currency pair at any point in time.

In Metatrader forex robots, we call Expert Advisors. They give you a signal to place trades, and they can also automatically manage the trade. In this process, the trader does not need to take care of the entire trading process manually. Forex Autobot can trade alone or semi-automated, where traders can only manage positions and robots enter into a position.

Do forex trading robots really work?

Forex trading robots can be useful, but robots are not the “holy grail,” and they can not have high performance as you expect. In science research papers, the best robots can achieve 9%-12% gain per year with a drawdown of less than 8%.

If you think there is a link to the forex robot that can double your account, you will make a mistake. I believe in quantitative analysis, which allows traders to remove emotion from the investing process and focuses on statistics or probabilities over gut feelings. Using data mining, statistics, testing, creating models – is the only way to create a good forex robot.

In my prop company quants creates a lot of “forex robots,” automated trading system.

What is an automated trading system?

An automated process rules this trading system. This is a program that allows the traders to set the rules for entering and exiting trades. In this system, the computer has to perform all the trading systems, and you will have to sit in front of the monitor to see the ups and downs.

Some so many people do not have exact and enough knowledge about the trading system. They get involved and do not know how to handle this. So, for them, the automated trading system is the best option. This trading system is very accessible, and you will need a computer with a proper internet connection. You should know one fact that you do not need to make a big investment to get started with the whole procedure.

It is one kind of software, and it can provide the Forex traders multiple amounts of trading services. This software indicates and guides their clients about a suitable time for buying and selling. They can also guide you throughout the process. You do not need to feel lonely in the vast area of the trading market. You can accustom yourself to the whole process.

They will show you the path and results after researching various trading strategies. They always provide the source codes and give you proper guidance as well. They also follow the unique mathematical algorithm.

Now when we know the theory, how quants create excellent robots? Our quants or quantitative researchers read science research papers, test models, exchange knowledge from traders, test various systems and make results.

Can I show you some trading systems and a forex robot that actually works?

Yes, of course.

For example, please read these papers:

Carry Trade Robots based on Currency Risk Premia can have up to 6% per year, Currency Momentum Strategies can have up to 6% (max drawdown 8%) gain, Currency Value Factor-based robots.

The best performance forex robots are robots based on Time-series momentum where traders can trade in the same time bonds, equities, commodities, currencies, and hedge positions and achieve better performance up to 12% gain per year.

Important thing: Results of all these robots are realistic because they tested on large datasets, on unseen datasets, and not overfitted. Robots on the internet (many trading expert advisors that do not have proven scientistic testing on unseen data) that many programmers sell show indicative results and false, unrealistic results. For example, if we have 3 bullish years for some stock or currency pair and create a robot that will more buy than sell, it will show great performance when we test that robot. In live trading, it won’t be good.

Forex trading has various trading styles and strategies. There are so many experts and efficient traders in Forex’s market who can guide you properly, and every trader has different ways of strategies and working structures. The overall Forex feature is divided into two parts- one who wants to do trading through a manual trading system and others who want to do trading by utilizing an automated trading system. Let focus on automated trading.

Now you generally have these questions- what is an automated trading system? Is this really profitable? What are the benefits and disadvantages of this trading system? Is this procedure totally safe or not? So, let’s proceed towards this article and get all the answers to these important questions.

How does the automated process work?

Step 1: the Trading idea
Either using experience or some basic idea or research paper, the quantitative traders test various ideas.

Step 2: Testing, backtesting, or machine learning

In this step, we try to optimize the model, ad new rules, change rules, improve performance.

Step 3: Coding the final version of the robot

In this step, programmers will write rules in python or mql4 or mql5, or any programming language and finish the robot.

It is not important whether you are an experienced or a beginner and novice in this platform. The automated trading system will guide you throughout the process. They can give you expert advice and take real trading decisions on behalf of the traders.

There are the best trading programs that are computer-based. These programs are specially designed to research and analyze the overall market of trading. This particular software helps you to understand the key trading signals. This software also points out the fluctuation of currencies and transactions as well.

This software helps you to find profitable currency pairs. This software helps you to research well before placing trades on them. If you plan to input your own trading strategy, you need to monitor the overall market strictly.

EA forex programming – Free EA course online

How to program your own forex robot? To build your own forex robot, you can use the MQL4 language in the Metatrader programming platform. The whole free course (4 hours) you can watch below:

How to write expert advisor in MT4: Above is a video that explains step by step how to create your own MT4 expert advisor in MetaTrader.

The advantage and disadvantage of forex robot

Forex Robot is a Forex trading software. It can automate trading decisions. It is a very modern financial strategically system. There are so many companies making and selling Forex Robots. But you will have to follow the strict rules and do proper market research to avoid any kinds of scams and all. This is the only disadvantage of Forex Robots.

Forex Robots are developed and programmed by different and experienced programmers. They are responsible for coding different and various strategies into the fully automated system to open, close, and manage the position in the Forex trading market. The Forex Robot will execute the trade based on the signals provided by traders. This tool will help the trader to avoid panic attacks and making the perfect trading solutions as well.

The efficient trading robot uses its intelligence to manage the whole process. You can get successful robots and their advanced strategies. These robots can manage the system smartly. They will manage the risk successfully.

Now you have got a clear idea about what is an automated system and how does it work? The robots carefully and strategically execute the trading systems. You can get one time real data from the robots. So, from now, you can invest in the Forex market smartly and strategically and get enough profits from there.

Can you make money with forex robots?
Yes, traders can make money using forex robots, but it is not easy, and the growth rate is slow.

This is the first article on this subject.
The next articles will give you more details about robots, quantitative research, and case study ideas.



Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the Fxigor Youtube channel. To contact Igor write on:

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