What Are Forex Robots and How Do You Make Money With Them?
| Posted in Forex Robots and Make Money |
With the worldwide economy in a recession and the job market in trouble, more people are looking for ways to start home based businesses today than ever before and Forex robots are one of the most popular “home based business” concepts that you are likely to come across. For those who are interested in Forex trading as a part time business, these robots offer a great solution.
Firstly, you can trade the Forex markets 24 x 7 on complete auto pilot, so you don't need to sit and watch the charts all day. Secondly, the trading is 100% mechanical and there is absolutely no discretion or human emotion involved in trading decisions, so it can be used by professional and beginner traders alike. In this article we look at how Forex robots work and how you canmake money with them.
The basic concept of Forex trading is very similar to trading with shares - you have to open an account with a broker, deposit funds into this account and then you can start trading. Instead of buying and selling shares, you simply buy and sell currencies (or currency pairs to be exact). Just like share trading, any profits you make from trading accumulates in your account and you can withdraw money from this account at any time.
Forex robots go hand in hand with a specific trading platform called Metatrader, which is used by many of the top Forex brokers online. Metatrader is a Windows based trading and charting application that has become the favourite of many traders due to it's large variety of technical indicators and features. In addition to this, Metatrader also offers a built-in programming language called MQL4, which can be used to develop your own custom indicators and automated trading systems.
Using this feature you can write your own trading systems that run completely on auto pilot..it can place trades for you based on your defined rules, it can manage your trades for you and do everything that you require without any human intervention. These automated trading systems are called “Expert Advisors”. Metatrader is currently the only trading platform that supports this kind of custom developed automated trading, which is why 99% of the Forex robots that are on the market today come in the form of Metatrader Expert Advisors.
There are many Forex robots to choose from in the market and distinguishing the good ones from the scams is definitely not easy. To avoid unnecessary losses, it is always a good idea to first test a Forex robot on a demo account for at least 1 to 3 months before risking any real money on it. It usually won't take more than a week or two for you to determine if the product performs as advertised.
In conclusion, Forex robots present a great opportunity to make money from the currencies without a massive investment of time and money from the trader, but you need to make sure that you understand how they work and what the risk are of using them.
About the Author: Chris Cronje provides detailed reviews and testing of Forex Trading Robots at his blog.
