Forex Trading Robot – How to Choose a Forex Trading Robot Or Expert Advisor That Makes Profitable Trades

There are dozens of forex trading robots or automated expert advisors in the market today. As a forex trader, it can be rather confusing to choose one. That is what I experienced when I first started trading in July 2007. Call me silly or stubborn, but I choose to believe that I am a guy determined to make forex trading work for me. This explained why I tried out all kinds of trading strategies. And I lost more than I earned …

But I have heard stories about how folks are going full-time day trading forex. And I soon got to know a few friends who are really profiting hugely from forex trading. Some are making $100s a day, others making as much as $2000 over daily.

To cut the story short, I realized that they did not do it on their own. They had relied on automated forex trading robots, what people call expert advisors. So it’s good news to me! At least I do not need to learn all the strategies and make all the mistakes.

But not all expert advisors work great. I have done my own research, and tested the different software used by those who are making profitable trades. Copying what the winners are doing is the best plan in my opinion, don’t you agree?

7 Winning Factors in a Top Forex Trading Robot

When you choose a forex trading robot or expert advisor, there are 7 factors that are vital to our selection:

1. Complete Automation

Expert advisors that are configured by forex trading professionals are literally forex trading robots that handle your trades for you. They run on a set of pre-defined trading principles and strategies and can execute trades for maximum returns.

2. Profitability Records

Needless to say, we want to use a forex trading software that is proven to make profitable trades. And not only must it be profitable, we want the one that outperforms other competitors.

3. Successful Backtesting Results

Successful backtesting results prove one point – that the forex trading software can make potential profits on live trading. However, that said, it does not always guarantee a successful forward trade.

After all, backtesting does not take market conditions into account. When you trade live, you will realize that market and world news can instantly lead to price fluctuations. The spread between bid and ask prices of different currency pairs may widen in such situations.

However, successful backtesting is the first step to evaluate a forex trading software.

4. Forward Live Trading Results

Positive live trading results are still the most evident proof of whether an expert advisor is up to it. Seldom will software vendors provide such results right before your eyes but a glance at their time-stamped live trading account is good enough.

5. Safeguard Features

It is always safe for the software to include proper safeguards as features. This is part of prudent money management. After all, it does not really matter how profitable the forex trading software has been for its backtesting and live trades. We will never know how the forex market will play out in future and the software needs to be properly configured to ensure a level of safety and assurance.

6. Drawdown Below 15%

The term “Drawdown” refers to the percentage loss in value as a result of a trading strategy before it bounces back to its original investment capital.

The drawdown is a good indicator of the risk level of the strategy and hence the corresponding level of risk the automated forex trading software is programmed to handle. Some forex robots are configured for drawdowns as high as 45%, which to me is ridiculously high!

Ideally, you should choose a forex trading robot that has a drawdown of maximum 15%. This also suggests that the strategy behind the robot’s trades is sound.

7. Money Back Guarantee

Make sure that the software vendor who offers the forex trading robot also provides a 100% money back guarantee. Since you will have able to use a free demo account, the risk of using an expert advisor is literally zero!

In summary, a really good forex trading robot/expert advisor is firstly one that runs on autopilot, requiring little intervention from you as the user, and secondly, backed by a solid and profitable strategy created by an experienced and top forex trading expert.