Forex Robots: Are they for Real?

The quick answer is yes, forex robots are real.

The corollaries are “real does not mean profitable” and “real does not mean that you will make a profit”.

I think I just made three points. They may seem simple, but there is some depth into them, so let me clarify.

  1. Forex robots are real: they are absolutely real. A forex robot is just a fancy name to designate an automated trading software for trading currencies. By real, it means that yes, they exist. They are not pure scams. The simple proof is that such programs have been used for at least the past twenty years by hedge funds and banks.
  2. But are forex robots profitable? this is the tricky question. This is very difficult to answer because for example a robot could be profitable during a certain period, but then lose money during another one with different market conditions. But if we take this question as meaning, is there any “real substance” or “truth” of profit seeking methodology within the forex robots, the answer is yes.
  3. Will you make a profit with a forex robot? note that this is probably the most important question, but this has nothing to do with the preceding questions, interestingly. Because people can lose money with a profitable forex robot, or make money with an unprofitable one.

I clarified some ground, but it may have made things more confusing for some of you. So let me add a few mor elements.

Forex robots have been used for a long time. Initially only by highly sophisticated financial operators, and they were not fully automated at the beginning, just partially. With the advent of the Internet and cheap computing, the top hedge funds have ultra-sophisticated forex robots which are 100% automated and which may have millions of lines of code.

We see a lot of promotions of online forex robots because part of the technology originally created for hedge funds and large banks has been moving downstream to the retail investors. What a small private forex trader can get access to today in term of forex trading technology is more than what the biggest banks had at their disposal ten years ago, and even close for five years ago.

The technology is definitively available, but it does not mean that you should buy any product that you come accross. Because this type of product is very complex, and because few people really know how to create profitable trading rules, you must be very careful with what you buy.

The higher demand from all the new online forex traders has attracted a number of scam artists who do not hesitate to lie about the performance of their software.

Buying a cheap robot and testing it with a small amount of money is an excellent way to put your feet in the water. It is quite unlikely that your first robot will be profitable, but you will have learned a lot along the way.

For example, try this rather safe forex robot.