This guide aims to introduce individuals to the concept that is automated forex trading bot and assist people to start their journey.
It will also explain the rules and guidelines of this procedure to assist in helping novice users avoid costly errors.
What exactly is automated Forex trading?
What do you mean by Automated Forex Trading?
If you’ve been a trader before in the past, whether that was stock, CFD or Forex, you’ll likely need to master and implement an investment method. This method could be based on analysis of technical aspects of charts. You will must sit at your computer’s display each time you want to trade.
A majority of people use their screens during the peak of the day during trading on the internet.
Imagine that you have hired someone who is an “expert” for trading on behalf of you. The expert will be watching the charts on your behalf and then make the trade for you based on her years of experience trading. She will then inform you at the end of each day with her findings, as well as the amount of money she earned (or loses) to you all while you relax on the beach drinking coconut water on the Gold Coast in Australia.
The “Expert” is an application on a computer, which we refer to “Expert Advisor” also known as trading “Bot” and this bot is exclusively used (in the majority of cases) in order to make trades with this Forex Market.
So in a nut shell:
Automated Forex Trading involves employing a computer program in order to purchase and sell foreign exchange on the market.
The platform through which this “Expert Advisor” runs is MetaTrader and many Robo Forex Brokers are compatible with this platform. Meta Trading Platform.
The good and bad in Automated Forex Trading
If Automated Forex Trading involves acquiring the help of a computer to make money trading in the night What’s the problem?
The Bad
The problem is that Not all Expert Advisors available today can be profitable in the long haul Even the “good ones must be correctly managed and set up to ensure that it’s operating well so that it does not “overbet” itself when your funds grow over time.
For the novice who has just gotten his hands on a fresh “kick at” bot, it is possible to lose money due the insufficient testing, the poor configuration , and the absence of proper budgeting.
The Good
However, the best part is that if make the effort to test your bot, set it in the right settings and regularly calibrate it and follow a prudent approach to managing your money, you’ll profit from trading bots in the long term.
If you are able to use trading bots, you can earn PASSIVE income.
Passive income, in my opinion, could be an option that could be the “Holy Grail” of becoming wealthy. This means that you make money while you sleep.
The possibility of earning 5-10 percent (or more) on your cash every month is possible that can add up to 79%-313 percent per year. This is an excellent yield when you consider that the standard term deposit within Australia at the moment of this writing is just 6% annually.
Assuming we’re prudent and we use 79% of the return on investment annually, for example, if you put $5000 into three years you’ll get $28,676!
All this time, you didn’t do anything other than check your bots each month.
What is the information I require to begin?
Once you’ve figured out the potential for Forex bots to be the “Cash Cow” What do we need to do to start?
You will require three steps:
1.) Join an agent
Many brokers are in the world, for an overview of the top brokers, check out the list below.
Be aware that brokers will impact your performance, certain brokers offer lower spreads than others, and some brokers might even scam you and even create artificial spikes that can force your bot into activating its stop losses, therefore ensuring you conduct your homework.
Be sure to make a demo account on this broker before you sign up with.
After you have downloaded your broker’s version Metatrader 4, just install it following the instructions.
Once you have it installed, open the program and experience with the interface.
2.) Find a Bot
There are numerous bots online that you can download. Some are free while some must purchase. I’ve compiled a list of bots I use. Please see below for more information.
When you are choosing a bot, ensure you study the details about it.
After you have the bot, it’s the next step to copy your bot’s source files to your MT4. The majority of bots will walk you through the process of installing, making this step straight to follow.
3.) Try the bot
Whatever this bot is claimed to be you’ll have to conduct some backwards and forward tests on it before you offer it money to use.
When you open MetaTrader 4, there is an application called “Strategy Tester”. This function lets you provide historical data to the bot you prefer and observe the results. This is referred to as “backward test”.
More important is to conduct “forward testing” by making use of your account demo to use the bot using live data.
Being able to test and configure your bot in a correct manner is essential to your success, and not doing this can be extremely detrimental to your savings account.
Last Thoughts
Here you go, I hope that this brief article has provided you with some knowledge about this exciting field However, we’ve only even scratched the level of what is possible.
For more information, join my newsletter when you sign up, you will receive:
1.) Bonus information on the most effective bot that you can download now, and past-tested results that demonstrate how much this Bot will earn you. Yes, I employ this bot myself.
2.) Provide you with me a hyperlink to my blog, Forex Trading Bot, which includes more useful information about:
- A list of bots that I’ve used
- How to backtest your bot
- How can you reduce your risk in the use of Bots
- A list of brokers who offer extremely low spreads
- More…