What is a Forex Robot and How to Setup a Robot to trade Automatically
In Forex online market you can earn captivating profit through Forex robots. Without forex robots, We could not get such exciting profits if we stuck with traditional ways of trading. To earn profit from currency trading required deep technical analysis, always follow the news and carry out extensive basic analysis and glued yourself at the front of the computer screen to watch the price charts. Automatic trading technologies have surfaced to make trading easier, increase the chances of getting more profits with lower risks.
What is a Forex Robot?
A forex robot which is called an Expert Advisor (EA), is a piece of software which is inbuilt programmed rules that automatically make trade entry and exit decisions on MetaTrader 4 platform for Forex trading. Forex robots are designed in such a way which eliminate the psychological element of trading, which can be pernicious. An EA trading system can be purchased online, traders should exercise caution when buying them this way.
How Forex Robots Work?
A forex robot works without the direct intrusion of the trader. It is coded with a set of instructions for automatically taking trade decisions. After classifying a strategy, you can use a forex EA generator to create the expert advisor or you can simply programme it into an expert advisor. EA builders have no need to get knowledge about programming skills or other technical skills.
Mostly expert advisors rely on technical analysis of the behaviour of the forex market and work in a similar way, whatever the type of EA a trader has brought or programmed. Whenever market conditions align with the programmed parameters and rules the expert. advisors will produce buy and sell signals. Mostly a trader set the technical parameters according to market conditions which maximize the robot profitability.
So, a robot works by generating signals whenever prescribed market factors and s other conditions about trading are met. Mostly robots are set at default settings which may alter to suit a traders risk appetence capital outlay and other preferences. To better understanding how forex robots work on MetaTrader 4 or 5, let’s look at the following EUR/USD 1-h our chart with Bollinger bands applied to it.
Bollinger Bands Applied to EUR/USD
Look at the chart, price broke out of the Bollinger Bands, showing a great buy opportunity.
If you trade manually you will stick in front of your computer screen looking for such opportunities. On the other hand, if the Bollinger Bands trading strategy were programmed into a robot, it could save you from such hassles, as trades will be automatically initiated without your direct intervention. This way, you can spend your time completing other tasks or strolling along the beaches of California. Nice? Once the robot has determined that the criteria for entering the trade using the Bollinger Bands strategy have been met, it will initiate a buy order at the price outlined by its trading parameters. The robot will have a specified level for taking profits. And, once the level is reached, it will automatically exit the trade and book the profits. Similarly, the robot will have a predetermined stop-loss level, which limits losses in case the trade goes contrary to the initial expectations. The robot will also automatically exit the trade and book the losses if the stop-loss level is reached.
How to Use a Forex Robot
If you want to use Robot for trading, it must be purchased from an authentic vendor or build oneself when buying an EA but must be ensured that it should buy who have a high reputation and verifiable results. Moreover, you can discuss with your broker if the Robot is compatible with their trading platform. Since the expert advisor will communicate directly with the broker’s server, purchasing an incompatible software could make more holes to your pocket. If you experience any difficulty, contact the vendor immediately.you can install more than one robots on your MT4 terminal. With several expert advisors installed on your MT4, you achieve different trading objectives and aggravate your profits. Remember not to cloud your platform with a bunch of robots that cannot add value to your trading. Once you’ve installed the robot, you’ll need to attach it to the chart of your preferred instrument and timeframe. This way, the robot can properly utilize your preset trading strategies. Moreover, robots usually have various settings, which you can use to get the best combination for maximized returns. You can also try the settings on a demo account under simulated forex trading conditions and move them to a live account once you’re confident enough.
How to Install Forex Robot on MT4
Installing a Forex Expert Advisor on MT4 is a very simple and easy process.lets do it.
Step 1: Open the Data Folder
When you have launched your trading terminal, click on ‘File’ on the top navigation menu. After clicking the “Open Data Folder’ on the drop-down menu.
You will then be directed to your MT4’s Data Folder where you can install the expert advisor
Opening MT4 Data Folder where you can install the Expert Advisor
Step 2: Include the EA on the Data Folder
On the opened Data Folder, double click on the “MQL4” folder.
MQL4 folder inside MT4 Data Folder
While inside the folder, double click on the “Experts” folder. This is the place where the robots will be included.
Experts folder. is the place where Forex robots are stored
Step 3: Paste the EA files on the Experts folder
Then, copy the EA files from their native location and paste them on the opened Experts folder.
In this case, we are using the Bollinger Band EA by Forex Robot Academy.
Bollinger Band EA by Forex Robot Academy installed into MT4 Data Folder
Thereafter, restart the MT4 terminal or Refresh the Navigator window to ensure the EA is available for use.
To find the EA, navigate to the “Experts Advisors” tab under the “Navigator” box on the left side of your MT4.
If you click on the “Plus” icon, you’ll see the EA already available for use.
Bollinger Band EA by Forex Robot Academy on the MetaTrader 4
Step 4: Adjust MT4 settings
On your MT4 terminal, go to the “Tools” menu and click “Options”. Then, on the popped-up table, under “Expert Advisors”, ensure the boxes are checked as indicated below.
Click “Ok”.
Expert Advisors settings in the MetaTrader 4
Alternatively, activate the “Autotrading” button on the top of the platform to ensure MT4 allows automated trading on the account (showing green color).
“Autotrading” button activated on the top of the MT4
Step 5: Attach the EA on a chart
Drag and drop your trading robot on your selected currency pair and timeframe, appropriate for the robot (usually outlined in the instructions manual).
About window of the Bollinger Band EA by Forex Robot Academy
Step 6: Adjust EA settings
On the appearing window giving your EA’s settings, make sure all the parameters meet your requirements before clicking “Ok”.
In the Common tab make sure the “Allow live trading” and “Allow DLL imports” are enabled.
Common tab of the Bollinger Band EA by Forex Robot Academy
Inputs tab of the Bollinger Band EA by Forex Robot Academy
If everything is fine, you’ll see a smiling face on the top right-hand section of your trading platform.
Hurrah!
Your Forex EA is now successfully installed on the MT4, and you can start smiling all the way to the bank 🙂
Expert Advisor Not Working
In case of forex robots is not work properly, there are some things you can do to fix the problems.
In many cases MT4 or robot is not a issue or problem, the problem lies in the lack of knowledge and skills that how to fix these issues easily
Here is a quick checklist that you can use to try to find the solution to expert advisor not working issues.
• Ensure the “Autotrading” feature is activated. You can find the option on the top toolbar of the MT4 platform.
Autotrading enabled on MT4
• Ensure the “Allow automated trading” feature is activated. You can find the option under the “EA Options” window.
MT4 Options -> Expert Advisor settings
• For the optimal performance of the robot, ensure the “Long & Short” feature is activated.
MT4 Expert Advisor Common Settings
• Depending on the type of robot you are using, ensure the “Allow DLL imports” feature, as well as the “Allow import of external experts” feature, are activated.
• Correct any error messages appearing under the “Experts” tab or the “Journal” tab at the bottom of the trading platform.
Tabs for Checking Errors
• Ensure your Internet connection is working well and your platform is connected to the broker’s server
• Re-start the trading platform to ensure the latest improvements made are captured on the next launch.
If the robot’s problem is not due to any of the above issues, you can re-read the instruction manual and double check that you didn’t miss anything during the installation process.
If the EA is installed properly, you’ll see a smiling face at the top right corner of the platform.
An Example of EA with Smiley Face
If you are still unable to find the solution for your expert advisor that is not working or you are unable to understand how expert advisor works in MT4, you can contact the vendor’s technical support or the programmer you hired.For an expedited response, remember to provide a good description of the issue you are experiencing.
Free Forex Robot for MT4
You can find a free robot to test the world of automated trading, one of them you find in MQL$ market.This site has a various database of free and paid Forex robots you can prefer to automate your forex trading.Note that before downloading any robot you must do proper research and backtest it using an expert advisor tester.Moreover, the MQL4 market has other tools that can help in automating tasks and boosting your trading experience.Examples include trailing stop tools, break even tools, and customized indicators
