With increased use of technology and automation, today we can find influence of robotics and A.I. in almost every field; be it education, politics or forex trading.
Forex robots popularly known as Expert Advisors or EAs have changed the way forex traders used to execute their trades previously.
Today, you can find hundreds of paid and free automated solutions available online that more or less claim to deliver similar services and great results. However, not all of them are worth your money and trust. This is why it’s important that you skim through multiple options first before deciding which is the best forex trading robot in 2019 for your trades.
What is a Forex Robot?
According to babypips, a forex robot is a software that basically works on behalf of the trader by making use of technical signals.
With just a single click, the robot starts doing its work and places trades on the basis of preset instructions without needing a trader to sit in front of his computer.
Broadly, there are two types of automated solutions available these days – free robots and the paid EAs. Although, it sounds incredibly great that you can acquire automated services without even paying a single penny, the services delivered by these free of cost robots are always questionable.
Why You Should Not Use Free Robots On Live Accounts?
They are Dangerous/Unproven
Since free robots do not come with any past performance evidence, they can actually cause more harm than good. The forex market is highly volatile and uncertain and obviously you can’t risk your investment with something that doesn’t include any verified proof. Plus, many times the accessible free versions are the obsolete robots which haven’t been updated in a while. To avoid the high risk, it’s therefore recommended that you stick to your demo accounts only while working with the free robots.
– They Don’t Have Any Customer Support
Paid versions are generally developed by proficient forex traders who try to include the essence of their experience and market know-how into their products. From trading strategists to the helpful and informed customer support, the paid EAs are generally backed by a whole team who’s always ready to guide their users.
The free robots, on the other hand, do not include any customer service. These free EAs are generally developed by forex traders who just want to share their expertise with others in hope to help them or many times crop up as scammers.
– They Could Have Old Code
As mentioned earlier, free forex robots are usually based on old and obsolete coding which fails to match up with the fast and evolving market fluctuations. As programmers and distributors aren’t getting any monetary benefits, they don’t bother to invest their time and energy into revision of codes. If used as it is, such outdated robots can be truly dangerous for your trades.
– They could not be Working Properly
To download the forex robot for free, it’s similar to order a dress online: you never know what will be the exact quality, whether your selected color will be the same, whether the size fits you and etc. Keep in mind, a compelling description isn’t enough to trust the software that it will deliver the same results as the developer has mentioned in the description. Possibly, some cunning wicked programmer has devised it deliberately so that the traders suffer.
In addition to that, as these free-to-use downloadable programs are not maintained on routine basis, you cannot expect them to work properly or deliver results according to the changing market situations.
Only Use Free Robots for Testing
Good to learn from, but not to trade live with: There is nothing wrong if you want to integrate automation into your trading strategy. After all, everybody is doing it. But, make sure to use these free robots for testing only. Don’t ever use them on your live accounts as there is a huge risk involved. Opt for the reliable paid versions only if you actually want to benefit from the perks of automated trading and want to increase your chances of success.
In conclusion, automated solutions or forex robots are great if you’re actually sure about their authenticity. Even if you’re investing in a paid robot, make sure to backtest it first before using it on your live account. Also, make sure to test your robot after every few months to see whether or not it’s providing the similar consistent results. As far as the free alternatives are concerned, you can use them as a yardstick to learn the market basics. But, never put your hard-earned money or reputation at risk by using your live account on the doubtful free robots or EAs.
Similar to any other online purchase, it’s also important that you do research on your part before trusting any free-to-use service. Take help from third-party independent websites, read unbiased reviews, backtest and only then pick a robot that in your view can deliver great trading results.
Have a safe trade ahead!