Love them or hate them, forex robots have definitely revolutionised the way the forex market operates. Not only have they emerged as a potent tool in the trader’s arsenal, but they have also created a brand new area of employment for programmers, coders, web designers and forex software vendors.

I know a popular alternative energy provider in Africa who generated the $50,000 capital he used to start his company by introducing forex robots into his country. Others have made money from selling forex robots to traders, or using them to generate trading signals and selling same.

Unfortunately, money is something that attracts the good, bad and ugly, and between 2008 till date, there has been a proliferation of junk forex robots online to the extent that more than 95% of forex robots out there are fake and substandard. Many traders have fallen prey to these fake robots, and lost colossal sums of money. So how do traders protect themselves from falling into the pit, while at the same time, deriving the benefits of forex robots?

The answer is in one thing: programming your own customized robot.

The Process of Programming a Forex Robot

A forex robot is simply a set of trade algorithms, written into code in order to provide trade executions when the conditions for the strategy on which the algorithm is based are met. What this means is that a trader can actually devise his own strategy, and get it coded into a forex robot.

The most popular platform for the programming and use of forex robots is the MetaTrader platform, along with its Metaquotes Language (MQL) programming interface. However, there are other trading platforms such as NinjaTrader, TradeStation, ActTrader, etc, which also have their own unique programming interfaces and languages. Now a trader does not need to have programming skills in order to program a forex robot. All a trader needs is to locate a good forex programmer who can translate the strategy into a workable algorithm and into a functional forex robot.

Aside from the core strategy, there are several other parameters that can be coded into a forex robot. It is possible to define a risk management strategy, which controls the percentage of the trader’s capital that is exposed to the market at any given time. This function consequently determines how much is apportioned to trades, and how many trades the forex robot can open simultaneously. Another parameter that can be coded is the ability of the robot to set a trailing stop, a stop loss, and a profit target. Exit strategies can also be coded. An example of this application is if a trader wants to close half of his position at a certain point, and then set a trailing stop to chase the remaining half for further profits, up to a logical conclusion.

It behoves the trader to do rigorous practice trading in order to get a very good strategy that can stand the test of time. Once this is done, the trader can then get a programmer to code his forex robots for him.

You can inquire about forex robot coding services from the blog admin.