How to choose the Best Forex Robots? What are the main factors when choosing Expert Advisor for Forex trading? How to not get scammed by the seller and what is important to check before ordering any Forex robot? These and other important questions are covered in this article. Keep reading!
Trading on the Forex market is quite an expensive business. And now we are not talking about money, it's about time and nerves, not everyone can devote a lot of time for trading, not everyone can cope with emotions, seeing a growing or decreasing deposit. And here come trading robots as an aid for us.
Expert advisors can earn money without the intervention of a human, but they are deprived of a significant advantage – they have no intelligence. For automated trading systems to make a profit, and not to lose the deposit, you need to choose the right program. However, it is not the easiest task to do. The fact is that high-quality profitable robots are not easy fish to catch and their price is not affordable for everyone. And even if you can afford it, are there lots of people willing to risk their money blindly by buying an expensive advisor?
We wrote this article to understand the diversity of Forex robots and choose the best of them. We will try to understand why there are so many advisors on the market and how to find a worthy product among them that will really be profitable and will not turn out to be another scam.
But before plunging into the proposed topic with the head, we must learn one important thing:
"99.9% of Forex robots are tried to be sold to you on the Internet is total trash. Yes, Yes, that's right, you heard me right. This is the industry of deception. Beautiful pictures, promises of millions of profits for only $ 100, all this is just empty promises."
Surprisingly, there are still enough gullible dupes, and therefore the industry continues its work. In order not to be deceived like thousands of other buyers of trading robots, we need to better understand the basic principles, according to which it is worth paying attention to particular products.
TOP 5 Factors When Choosing Best Forex Robots
Before starting the search for Forex robots, first of all, you should inquire about what are Forex robots and what are the pros and cons of automated trading. When, having familiarized yourself with all the pitfalls, understanding the advisor system's algorithms, you decide to choose a Forex robot for yourself, be careful. Let your choice be based on a number of factors that we will discuss in this article.
So, now let’s see what is the 5 main factors when choosing the best Forex robots:
1. Price of the Forex EA
It is necessary to stipulate one important thing at the very beginning. There are no reliable robots that would be free or would be cheap. As Baron Rothschild once said, “I’m not rich enough to buy cheap things”. This expression makes sense when we are talking about buying a trading robot. Total loss of the balance in your account cannot be compared with a couple of hundred dollars, which you can save on the purchase of a cheaper system.
A good robot needs detailed deep thinking through even the smallest, insignificant variables. Trading systems in their work use dozens of action algorithms, each of which must be properly thought out and spelled out in the program code. Such work is very consuming and laborious. And the payment for such work cannot be small. Accordingly, the price of the robot cannot be this low as well. Therefore, when buying a Forex robot, pay attention to the price. Advisors, which are sold for mere pennies, most likely won't bring you even the slightest profit.
2. Forex robot Reviews
The most reliable confirmation of the reliability of the advisor is the customer's reviews. People who have already experienced a product on a real or demo account will give you much more detailed information about the robot's performance than any manual.
You shouldn’t, of course, rely on reviews that are placed on the software sales page, since these sites are often just a field for advertising, and won’t find any real reviews there. But, fortunately, there are a lot of forums on the Internet, where traders share their impressions about the performance of this or that advisor and even make deep reviews on the best (or worst) of them. As an example, a popular platform ForexFactory, where thousands of traders from around the world are gathered.
The effectiveness of any system depends on how well this system has been tested and how responsibly the developer approached the solution of the problems encountered during the test.
When an EA has been tested either by a third-party website or by the vendors themselves, there are usually some statistics that indicate its performance. And, if you do not understand the statistics well, you may not select a suitable trading robot.
Apart from the straightforward details, let’s try to understand some of the not-so-common statistical terms.
- The profit factor
This is the most vital statistic because it answers the most critical question: will the trading robot generate positive or negative returns? It is obtained by getting the ratio of the summation of all the successful trades and the summation of all the unsuccessful trades; it is simply the ratio of gross profit to gross loss.
Therefore, because the profit factor indicates the connection between risk and profit, you should not select an expert advisor with a value of less than 1. It’s advisable to choose an EA with a big profit factor—as much as possible.
- Expected payoff
Also known as expectancy, this statistic forecasts the average amount you can earn per trade. Although the value is based on historical data and provides no guarantee of similar results in the future, it’s useful in showing how the EA is likely to perform.
The expected payoff is computed by getting the difference between the average profit for each trade and the average loss for each trade.
Drawdown (absolute drawdown, maximal drawdown, or relative drawdown) are essential indicators of risk. These statistics will give you an idea of how the expert advisor performs when it’s in trouble. For example, the maximal drawdown shows the maximum loss since the last highest value.
A volatile EA will have a higher drawdown, which signifies that it poses a greater risk, and therefore may be unsuitable for trading. Consequently, you should carefully analyze these statistics before committing your money in purchasing a robot.
4. Live trading statistics on Myfxbook
A good profitable and reliable robot besides backtests should have a good history of working on a real account for at least one year. By providing such information, the developer confirms that the system really works and really generates income. For this purpose, there are trading account monitoring services on the Internet, the most popular and reliable of which is Myfxbook. This service provides unbiased real detailed information about the profits and losses on a particular account.
If the developer cannot (or doesn’t want) to provide you with the results of the robot’s performance on a real account, you should not even think about buying such an advisor. If the developer provides you with any results, allegedly from any other service that cannot be verified in any way, it is not worthy of trust. In fact, all honest developers make public the results of their Forex robot’s performance on the Myfxbook website.
5. Rating on ForexStore
If you are looking for Forex robots on the ForexStore website, you should pay attention to another very important and useful thing for you.
Our team works hard to provide only the best products on Forexstore but, apart from that, we also take care to make sure that you will find the most profitable and reliable system. For that particular reason, we have developed our unique algorithm to put together a rating for each and every Forex trading system we introduce on our website. This rating takes into account how stable the specific trading robot trades, how long it has been out, uses real money on the account of the system or not, and much more. The total number of factors taken into account determines where in the ranking this or that assistant will be.
We want you to be sure that the rating on our site is as transparent as possible, therefore we have put here detailed information on how the algorithm works and what key factors are taken into account for the construction of the rating.
Surely, it won’t be superfluous to also talk about the chosen advisor on the forums with the experienced traders and to find out everything that interests you from the developer as detailed as possible. But even having bought an advisor that is suitable in all categories, do not rush to launch it on a real deposit. For a start test yourself the system in the strategy tester, which is provided in MetaTrader 4. This will never be superfluous since some advisors need a very careful setting of parameters.
In all other respects, choosing an advisor, taking into account all the factors listed above, you most likely won’t regret and will choose a good product. We wish you successful trading and only honest sellers.