In the forex world, a “robot” is a program that strictly uses technical signals to enter into trades and lets the human sleep in a hammock on a beach while he “makes” money. With a push of a button, the forex robot runs continuously, making trades signaled by mathematical algorithms applied to past price history. In other words, they run automated mechanical systems, whether or not the user is in front of the computer or not.

The most important task of Forex robots is to execute trading operations as fast as it’s possible keeping the accuracy of their implementation high at the same time. It raises trading effectiveness and economizes a lot of time for those traders who do not do Forex trading as a full-time job. The principle of operation of Forex trading bots is that it monitors the situation on the market, determines signals of profitable market situations following the program included in it, and submits an application to the Forex broker to complete a transaction, and broker executes the application. That is, ultimately, the effectiveness of the Forex EA depends on the complexity of the algorithms, indicators, and patterns that are written for it. Thus, it is wrong to rely on the fact that the Forex robot could be turned on and forgotten about, and still will continuously raise profits without trader’s interference. Nevertheless, a well-written and tested Forex robot saves a huge amount of time and lowers the stress that always escorts Forex trading. There is a number of programs that are supposed to be installed and set up before the beginning of robo trading. The main trading platforms where the EA is installed are terminals like MetaTrader4 or MetaTrader5. These are the main environments for all kinds of Forex trading. Usually, brokers provide fully set-up trading terminals for their customers for free.

There are a bunch of advantages of using the Forex robots that influence most of the aspects of automated trading. These are reasons for such great popularity of Forex robots nowadays which are inherent only for machines, and almost unattainable for humans. The first thing that separates Forex robots from humans is their ability to run trades day-and-night with no interruptions. While manual traders are forced to interrupt trading during sleep hours and other necessities of life, Forex robots are made to do their job 24/7 to bring maximum profit. Traders must constantly maintain a high concentration, be attentive and focused to reach success in such a risky business like Forex. But since we’re only human, we can be distracted or tired, and all these factors can and definitely will affect trading results. In this sense, a robot also gives a head start to humans because robots don’t get influenced by emotions or other destructed things. Statistically, the biggest trading failures happen not due to an incorrectly selected strategy or sudden unpredictable market changes, but due to human factors – greed, passion, inability to stop in time. On other hand, the Forex robot would never succumb to the desire to trade disobeying chosen strategy, which minimizes the risks. Only traders with a lot of experience can work simultaneously with several trading instruments or strategies, but this is quite an ordinary task for Forex robots. Using EA traders get in profit on two or three currencies at once which significantly raises trading effectiveness. Forex robots can trade due to those technical indicators that may not be mastered yet by the trader. This gives access to the wide field of trading tools which is almost impossible for one person to become a professional at once. This is an incredible feature that makes profitable currency trading available for almost everyone.

There are not only pros of Forex EAs but also cons that must be described so that we can see a full picture of the automated Forex software. The real efficiency of EAs’ work directly depends on what algorithm it is guided by. It often happens that a certain algorithm brings a solid profit for a long time, and then, as a result of complicated market action mechanisms, it starts to operate at a loss. Therefore, to make money on Forex, a trader needs not only to know how to install and run a Forex robot but also be attentive to everything that’s happening with your account and if needed to stop the work of the robot to prevent big losses. Lack of emotions can be an advantage and disadvantage of Forex EA at once. The EA can drain all your funds in one day without any hesitation. Consider this before purchasing a robot. Choose the advisor that’s got a proper risk control system and money management algorithms programmed into it so that you would not risk with more money than you’re ready to. There are tons of Forex robots available out there. The Internet is just teeming with offers of huge income through trading automation. Of course, a major part of these proposals is just a scam. Automated trading has become a fertile ground for fraud because of its highly profitable potential. That’s why it’s extremely important to be careful and double-check any proposition of any kind of automated trading software. There is a high probability that your chosen robot shows good results on the historical quotes because it is specifically tested and optimized on historical data. However, good historical performance doesn’t guarantee the same results in real live trading. Real high-quality Forex robot has to be supported with good real live trading results provided by a developer to ensure the trading efficiency of the EA. This is a crucial thing to consider when picking up any Forex robot.

To make a long answer short, yes, they are. Since Forex robots developed as computer programs for automation of routine trading currencies processes, good EA does actually do what they’re supposed to do – automate operations of analyzing the market, make calculations, and even trade for traders. But, if you see Forex robots as cash machines that make a profit while you live your best life just spending the cash and chilling, then you’ve been fooled by those scamming sellers that promise a mountain of gold if you buy their system. It is absolutely not that way. Forex trading is a job and the Forex robot is just a tool used to reach higher results. You have to know how to get the best out of it. Only proper education and gaining of auto trading experience would bring you success.