I have spent since January 2009 testing quite a few Forex trading robots and this page is dedicated to my thoughts and to give you an idea of what is out there in the way of robots.
Some robots are good, some OK and some poor (as you might expect). The poor ones often trade very well in certain market conditions and very badly in others. On a number of occasions when I have been testing a robot that I have bought they have made a lot of money initially then proceeded to wipe out the account (fortunately a demo account).
Most of these robots seem to now have been taken off the market - funny that!
Some however have made good money consistently and since the start of 2011 the number of good robots available to buy off the shelf have certainly increased. I have also spent a lot of my time developing my own ideas rather than rigorously testing every robot on the market.
My own Robots
I have spent hundreds of hours designing, building and testing literally dozens of robots (probably well over 50!) and I can tell you it is no where near as easy as you might think. The problem of getting something that will make money when the market is trending strongly without losing it all when the market is ranging around within relatively tight upper and lower limits (or visa versa) is a difficult one to crack. And if we knew a way of determining when a strong trend was going to start and end we would all be instant millionaires!
I have eventually found a good compromise and I am trading my live accounts with at least two of my robots currently and they are doing well but I have no intention of selling them at the moment. I am also trading some purchased robots on my live accounts.
Without doubt there are good and bad and some very sophisticated robots on the market now. Things have really progressed in the last few years.
I have always said that you cannot look for something that will turn a 1000 account into half a million in a year, whatever you are trading - if only life were that easy and I don't believe those kind of claims. But if you are looking for reasonably good gains with a few ups and downs along the way it is certainly possible with off the shelf robots, some of which are remarkably good value for money. The only way to give these things a fair test is over a reasonable period of time (say three months at least) to be able to include all types of market conditions.
Most robots WILL go through winning and losing periods and you need to see both before you can say if they will make a profit overall and if they do then you have found a good one. Bear in mind you may also need to stick it out through a poor period. I STRONGLY advise prolonged testing on a demo account before going live with hard earned cash.
I can tell you it is GREAT FUN and when it all works it is a thrill to wake up in the morning and discover how much money you have made while you were asleep!
A number of times I have seen a robot make excellent money in the first few days or even weeks and then completely wipe out the account. A trader I know well made thousands of pounds on a demo account in the first week, switched the robot to his live account and was wiped out in the first two days. Take care! DO NOT be tempted to switch to your live account too soon and always start with very small lot sizes when you do.
Also, be aware that if you leave a robot running while you are away and you get a power cut or your internet connection goes down you could be exposed and it could cost you a lot of money. If you are trading a live account you MUST use a Virtual Private Server (VPS) which guarantees 24 hr up time for both power and internet.
If you decide to test some robots please provide brief feedback to me and I will add it to my Robot List page. I will try to build a list of good robots and ones to steer clear of for everybody's benefit.