Forex robots are software programs that monitor the market 24/7 and make trade decisions for their owner, taking out some of the legwork associated with trading by automating many mechanical aspects of making transactions. While forex robots can make trading simpler by automating many aspects of making trades, they should not be seen as magic solutions and should always be treated with caution.
There are two primary methods for creating your own forex robot: 1) using a software program that allows you to drag-and-drop separate blocks of code onto an interface or 2) writing your own programming script in an established programming language. With the first method, a user-friendly interface provides access to indicators, trading strategies and risk management rules while with the latter it requires deeper knowledge in both programming and trading concepts, taking longer for completion.
Once your forex robot is programmed, the next step should be testing and optimizing it based on historical data. This step is crucial as some made-for-purchase robots may suffer from curve-fitting and data-mining bias where a vendor cherry picks a backtest that appears profitable before asserting that this result will apply to all buyers. At this stage it would be wise to utilize either a demo account or paper trade your robot before turning it live with real money trading.
At this stage, the robot should be tested under various market conditions and monitored during live trading to make sure that its performance matches expectations and does not cause unexpected side effects such as choppy prices or sudden stops. Once it meets these standards and has been optimized to your satisfaction, then it is ready for use.
Even after exhaustive testing and optimization, it should not be expected that even with proper execution your robot will only make small profits. Most forex robots trade within a narrow range, often setting small pip targets and not using stop loss orders – making them suitable for beginner traders looking to remove psychological elements of trading that can hinder profitability.
Avoid companies promising instant riches with their robots. Scam artists may often pop up suddenly offering “instant profit” robots with money-back guarantees, only to vanish in 45 days – this kind of scam should be avoided at all costs! Instead, conduct thorough research to locate an experienced developer with proven results who has created reliable products in the past and this can save both time and money in the long run. Only through exerting effort will you truly create your own forex robot that generates long-term profits.