Hello! In this article, I would like to talk about the main types of forex robots.
Consider what risks each type of robots has, what broker requirements are needed for each type of robots.
Hello! In this article, I would like to talk about the main types of forex robots.
Consider what risks each type of robots has, what broker requirements are needed for each type of robots.
In general, according to the classification of the Mql5 market, 10 types of robots can be counted:
- Martingale
- Arbitration
- scalping
- trending
- Neural networks
- Grid
- Hedging
- news
- Trading from levels
- Multicurrency
But, to be honest, I would narrow down the data by type of risk.
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For Expert Advisors that use a fixed small SL
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Expert Advisors with averaging and martingale
Here we are in detail about these 2 types and will consider them in fact, they will include all the main types of robots
Fixed Stop Loss Expert Advisors
Fixed Stop Loss Expert Advisors are Expert Advisors that have limited risk, the lower the risk, the less profitable the Expert Advisor, in fact, will be.
Probably the rule is the More risk – More profit, will be the same for all advisers and types of trading in principle.
That is, be ready right away if you are looking for a consistently profitable adviser with a minimum risk per trade, then just throw this idea out of your head, it doesn’t happen, I repeat it doesn’t happen, at least I haven’t seen this, and I’ve been in this bisnes for more than 8 years.
Yes, and think for yourself, if such an adviser existed, then why need do anything at all, just put such an adviser on the account and get the money and live fairytale life
How Expert Advisors Really Work with an Acceptable Fixed Risk Per Trade
Such advisers earn at a distance, but they can have unprofitable days, weeks and even months, and possibly more than one, that is true, you will earn with such advisers for periods, then receive losses, then earn again.
The difficulty is to withstand periods of draining and losing trades and continue trading, waiting for the moment when the adviser starts earning again.
Nothing else.
We can hope for profitability during the period when we receive a loss based on previous backtests. Since we have seen in history that for example there were 3 unprofitable months in a year, the rest are in profit, which means that at least 3 months will probably be unprofitable in the future.
You also need to analyze the trading of the robot in detail, perhaps on some pairs it merges on others in the black, try, optimize, test, in general, this requires tuning and brains from the trader.
Broker requirements
Pay attention to what the developer say about required broker for the advisors that you bought. For example, for scalpers, the spread size will be very important, so for such Expert Advisors, choose an ECN broker with a narrow spread.
Let’s sum up
- the risk is limited, if you receive a loss, it will not be catastrophic for your deposit, given that the adviser in the transaction risks 1-2% of the deposit
- profit is not stable, there are unprofitable weeks, months, and maybe quarters
Expert Advisors with averaging and martingale
Let’s start with the fact that on the Internet there is a misunderstanding of this type of advisers, namely, people are so afraid of them, because they can drain the deposit.
Can they drain the deposit – yes they can
Can they earn yes they can
Is it risky – yes risky
But you just need to remember the simple moment RISK – PROFIT
Here it all depends on your luck, someone can trade with a similar adviser for a year and double the deposit, at the end get out of this topic and do something else
Someone can get into an unsuccessful market cycle and lose their account after a few months
Regarding the account merge – do they really not have a risk limiter at all, EAs with averaging may have a risk limiter, but let’s say it can be in the amount of 30% of the account, agree when you have a loss – 30%, you may decide to wait for more and do not stop at thirty%
And yes, you may be lucky and the price will turn around by 32%, and you will close in plus, which often happens, but perhaps not, you may not be lucky this time and you will lose the entire account because you yourself canceled the stop loss at the level thirty%.
Why are Martingale Expert Advisors still popular despite the risk?
These EAs are popular because these EAs bring in the majority of the profits for many traders I know. Also, in practice, the signals in the mql5 market with these advisers have been and remain the most successful, despite the fact that there were cases and more than once when they merged the account. Nevertheless, this is a true reality and people use what really works and makes a profit, albeit with risks.
Expert Advisors with averaging are successful because the Forex market itself is cyclical and most of the time the price of the currency is in a certain corridor and does not leave it, therefore, by their nature, such Expert Advisors are better suited to the Forex market.
Requirements for a broker
Expert Advisors with martingale and averaging usually do not have requirements for a broker. Choose a broker with no commission and preferably no swap.
An important point, robots with martingale often have drawdowns, so it is very important to select a starting lot, such that in case of position averaging you have enough deposit in case of a drawdown, so it is better to open a cent account if you have a small capital, say $100 or $500.
Also connect the return of the spread to such robots, thus you will have double profit from trading and from the rebate. In the description of the video, I will indicate how to return 55% of the spread from the broker.
Key takeaway
Do not look for a grail robot, based on my experience, only behind the risk there can be profit, only for those who are willing to take risks, other horizons will open.
There is no perfect robot, if you want to use robots in Forex trading, try both options.
The main thing is not to use all your capital in trading in trust in one robot, especially if you have not checked it.
Where you can find proven robots?
On my site SoftimoTrade.com you can find different types of robots, both with fixed Stop Loss and Grid Expert Advisors with averaging, and martingale.
For those who want to get acquainted with my developed trading robots and utilities, follow the link in the description.
Thanks for reading!
These were true words, from my personal experience. If you want to express your opinion, write in the comments.
I wish you successful trading, see you in new articles!
