If you're really interested in forex trading or already into the game, you'd realize that the processes can be really strenuous. So what many professionals do most times is to hire a robot to go through all the hassles for them while they sit back, relax and sip a cup of coffee! 

In today's article I'll be having a deep dive into how forex robots really works and how reliable or efficient they can be for your forex trading career. 




A forex robot is forex trading software that automates trading decisions. The most popular robots for retail traders are built around the MetaTrader platform. These robots run on MetaTrader as "expert advisers" and they can do almost anything, from giving you a signal to place a trade, to placing and managing the trade for you automatically.


Advantages & Disadvantages 
If you have a forex strategy that's strictly mechanical and that doesn't require a human in the decision-making process, you can program your forex robot to trade for you 24 hours a day.

Many companies create and sell forex robots, but be careful who you deal with so you don't fall for a ponzi scheme or a scam if you're in the market to buy one. 

It's not uncommon for a company to spring up overnight and start selling an "instant riches" forex robot, including a money back guarantee, only to disappear in about in a few days.

The majority of made-for-purchase forex robots are not profitable, so please do your research first if you're planning on purchasing one. It's best to be wary because there's a great deal of curve-fitting or data-mining bias in the made-for-purchase offerings.

Data-Mining Bias
Data-mining bias is the unspoken enemy of many traders who purchase forex robots. It refers to the process of "cherry picking" the best backtest out of hundreds or more and presenting that backtest as the likely outcome for the purchaser of the forex robot.

Successful Robots
There are some successful robots out there, but be aware of the data-mining bias that is front and center of most made-for-purchase systems. Typically, these systems maintain an edge and manage risk successfully. They're less about high win rates and more about position sizing and cutting losses quickly.

If there was ever a good example of the meaning of "buyer beware," this is it. The phrase is extremely applicable to forex robots. When you're thinking about buying a system, ask yourself, "If it works so well, why is it being sold at such a discount?" Altruism is typically not the intention. Sub-par systems are often sold as soon as a data-mined outcome can be put together so an uneducated buyer can purchase the code.


In conclusion, trading with a forex bot can be lucrative if you purchase a good one from a reliable source, due to the fact that the IQ of an artificial intelligence can be stronger in areas humans intellect would be weak. Yet they might not have that instinct as every other person does when it comes to taking certain strategic decisions.
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