Forex expert advisers or forex robots are computer programs designed to automate the process of trading the foreign exchange market. Forex robots are trained to trade on the basis of specific forex systems and strategies (which are a combination of rules and indicators the trader or the developer of the expert advisor is willing to base his trading decision upon if he were to trade manually).
Trading the forex market could be very tedious and challenging: You've got your rules for taking a buy or sell decision, and you are sitted there with your eyes glued to your computer watching the indicators to get the perfect setup, and that did not ' t happen for hours. So you decided to take a short break to stretch your limbs or take some tea in a short moment, but alas! you returned to find out you're late-you've just missed the entry point. Even when we catch the right moment, as rational animals, we sometimes yield to the tempation to bend the rules when the ride is not being smooth, but at the end of the day, you find out your emotion has just robbed you of the right decision.
In view of these traders began to turn to forex expert advisers or robots, as some will put it, to beat emotions, stess and waste of time. Today, there are as many expert advisers as there are forex systems and strategies. But the question is do they really solve our problems? I have tried a number of forex robots; some purchased from vendors, some taken from friends and some found in the online library of metatrader4 trading platform, with no success.
I realized there are two major reasons that they do not work; the first being that they are mostly based on indicators which only point to what has happened and not what will happen in the market. Secondly, they do not take the news releases into consideration; which are the major determinants of the market moves. I concluded, like most traders I know, that all expert advisor do not work.
On a second thought, I felt these problems could have been acquired if expert advisers are trained with the following antidotes:
1. Ability to recognize technical levels and under trends which are the only things even news traders respect.
2. Use of price actions and technical patterns as the major indicators- these do not lag the market but tell you what it's likely to do next.
3. Flexible and "invisible" stop loss determined by discretion.
No forex robot could boast of the aforementioned ingredients in it's recipe until recently when an industry insider- a forex guru and a mathematician combined their expertise to develop an expert advisor that integrates these and lot more; including fifty modern indicators. This robot was christened forex autopilot and it actually proved skeptics like me, who have closed the case for successful automated trading, wrong.This expert advisor takes trades as if it determines the market moves rather than following it. It made $ 2400 on my demo account within a few days of demotrading with it.