Forex robots can automatically scan the forex market and take trades on behalf of the user. This makes them a popular choice for anyone who does not have the time or skills required to manually trade currency pairs. However, with so many forex robots to choose from, both free and paid, it can be a tough choice to decide which forex robot is the best for you. There are some things to consider which I will cover in this guide along with a list of the most profitable forex robots from my experience.
How to spot a profitable forex robot?
There are a few key things to look for when trying to determine if a forex robot can make profit or not. If I am considering whether I would like to use a forex robot on my account or not, these are some of the first things that I would look for. Even then, I would still only test a forex robot on a demo account to see how things go without taking any risk. Sometimes a trading bot can look good on the surface but things may not be as they seem when you dig a little deeper.
The first thing that I would look for is any verified real live account results that have been running for at least a few years. These results should show that the bot has been performing well which will give me confidence that it has some potential.
However, whilst historical results can give you an idea of how the robot trades, it is no guarantee of what will happen in the future. The forex market is constantly changing so what has worked well in the past, may not necessarily work as well in the future.
I have even known forex brokers to change their account conditions if they don’t like how profitable a forex robot is. This is why you will often see forex robots that try to hide themselves from the broker by using a different name for the trades or what the developer will call “hidden” stop loss and take profit levels. The thing is, it is not possible to hide what you want to do from your broker as they are the one who need to execute commands for you.
After checking the forex robots’ profit or loss on a real account, I will have a look at any backtests. These should show the results of the forex robot based on back testing over years of historical data. Back testing involved running a simulation of the bot over the price data of a currency pair, ideally for as many years as possible.
I would at least want a few years of back testing data on all the currency pairs that the robot has been designed to trade. This can help to give us a rough idea of how the forex bot may have performed throughout different market conditions.
I always find it strange when a develop makes claims about how much money a forex robot can make but then do not back it up with any real results or back tests. Without either of these, we have no inclination of how good or bad a forex robot may be.
If the forex robot has been developed for the MetaTrader platform, I would expect at least 99% modelling quality using real tick data for the best back testing conditions possible. They should also include variable spreads, commissions and slippage. Without accounting for these, the robot results can be very unrealistic.
Now that we have checked the real results and back tests of a forex robot to see if it is profitable, we should analyse the trading strategy that it implements. Some robot developers will share this openly, whilst others are more secretive in order to protect the automated trading algorithm from been duplicated.
You will find there are lot of forex robots that use potentially dangerous money management strategies such as martingale robots and grid trading robots. Unless you are happy with high risk, then I would personally avoid these types of forex robot. More often than not, they can lead to margin calls and blown accounts, especially when trading forex with leverage.
I have seen so many forex robots which show huge gains but also have very high drawdowns that are way too risky for my tastes. Granted, they can go on winning streaks and bag some good pips, but they usually always end up wiping out the account. If you were to start using such a robot at the wrong time, things may go south sooner than expected.
Try to identify what indicators and other forms of market analysis the robot is using to see if you understand how it works and if it can fit within your preferred trading style. Some forex bots will also have news filters which can help to avoid potentially volatile market conditions around major news releases.
Have a look to see if the forex robot settings can be adjusted. Ideally, all of the implemented indicators will be available for you to adjust as external inputs. At the very least, you should be able to change the money management including lot/risk size, stop loss and take profit. This way you can customise the robot according to your needs.
This is probably one of the things that most of you looking for a profitable forex robot will overlook. In the past I have seen forex robots make money on real accounts at brokers that are unregulated and seem to have appeared from nowhere.
There could be a good chance that they are working directly with the broker in a promotional campaign where the developer gets more clients through unrealistic results and the broker gets clients through users of the robot. Watch out for this and try to look for a trusted and regulated forex broker.
What is the most profitable forex robot?
To be honest, there is no answer to this. It depends on so many factors such as the broker and market conditions. A forex robot that is profitable on one broker may not be profitable on another broker. Things such as the brokers spread, commission and execution speeds, can all have a significant impact on results.
I would always look for a forex broker that has tight spreads, low fees and plenty of liquidity to ensure you can get your trades executed at some of the best prices on the FX market. IC Markets are my top choice for manual and automated forex trading systems as they tick these boxes and a lot more, including multiple payment options along with excellent support.
With that being said, here are a few of the best forex robots based on my years of testing.
The Forex Robotron EA trades multiple currency pairs on the 5-minute charts using a combination of price action and technical analysis. It has years of real account results that have been verified by Myfxbook. You will find 99% modelling quality backtests in the MT4 strategy tester over an impressive 15 years of data using real spreads and commissions. Not to mention, the customer support is second to none.
Forex Flex EA
The Forex Flex EA has been around for many years and is one of the first forex robots that really stood out form the rest. It has fully customisable settings and many years of verified results using different set files. The developer is constantly working on improving the Flex EA to ensure that it stays relevant in the current market conditions.
Forex Scalping EA
If you are looking for fast scalping action, then the Forex Scalping EA is certainly worth a look. This forex scalping robot can trade a great selection of currency pairs and has years of verified trading data for you to analyse.
How much profit can a trading robot make?
How long is a piece of strong? Really, if all you are thinking about is how much money you can make with forex robots, then perhaps you might want to consider doing something else instead. I see too many aspiring forex traders who expect to launch a forex robot on their account and wake up rich tomorrow.
It doesn’t work like that and you can easily lose as much as you can make if you are not careful. Please manage your expectations and instead of focusing on how much you can make, be realistic. Always start on a demo account to begin with and see how things go before you make any financial commitment.
Can forex robots make lots of money?
It is possible to make money with a forex robot, but it all depends on what kind of trading strategy the bot is using, how much capital you have and how much time you are willing to spend with the robot. It can also depend on the forex broker and market conditions.
Conclusion: are forex robots profitable?
Yes, forex robot can be profitable but there are no guarantees. However, you can possibly improve your chances of success by checking for the things that we have covered here. That includes real verified results, back tests and analysis of the strategy implemented by the robot.
Even if the forex robot has an amazing historical performance and the best trading strategy in the world, it is normal for any strategy to go through good and bad periods. Whilst that does not mean the forex robot is a scam, you should make sure you are happy with the forex robot and how it trades before making any decisions.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.