Of all the tradable assets at investors’ fingertips, it can be argued that none is as action-packed as the foreign exchange (forex) market. With currencies’ strengths continually changing in relation to each other, and at least some markets across the world always open in a given 24 hours, forex offers traders a chance to capture a profit around the clock. With that said, what robots can help investors manage all this forex action?
The Odin Forex Robot is considered by many experienced traders to be the most profitable forex robot on the market. While there are many factors to consider when looking at a forex robot’s profitability, it was reported that in August 2020, Odin Forex Robot found nearly $150,000 in trade profits for its users.
Although $150,000 in profits over an entire month may not seem like much money in the grand scheme of all forex traders globally, it is important to remember that forex robots are only used by a fraction of the overall trading population. Furthermore, considering that many forex robots actually lose traders money, the Odin Forex Robot should be regarded as a very profitable choice.
How Do Forex Robots Work?
Before jumping into a list of the most profitable forex robots in 2020, it is essential to understand how forex robots work.
A forex robot is a computer program developed to make trades for the user based on various buy and trade signals of a given currency pair. There are several signals that traders may use the assistance of an automated forex robot to recognize, such as:
- Action Signal – This is one of the more common-sense trading signals when dealing with forex. It is generally a simple “buy” or “sell” signal when a currency hits a certain point. For example, if the US dollar’s price falls to $XX in relation to its currency pair, then buy; if it rises to $XX, then sell.
- Stop-Loss Signal – The stop loss is a defensive signal that traders use to keep their losses from hemorrhaging. For example, if traders were to buy in at a low point that they thought was a bargain, but the currency continues to weaken, then the stop loss would be a point for them to exit before losses snowballed. It can be set to as little as .5% below the buy-in price for conservative traders.
- Take Profit Signal – This signal can be thought of as the opposite of the stop loss. When traders enter into a successful trade, the take profit point is when they will exit and bank the profit. The take profit is essentially the signal traders use to check themselves from getting too greedy and staying in a profitable trade too long until a correction inevitably occurs. However, most traders would like to profit at least 2% before exiting a trade.
- Current Market Price Signal – This is a signal that allows traders to gauge the real-time currency price against the price at which they entered the trade. While not an actionable signal in and of itself, it can help give traders an idea of how a currency pair is trending.
(Source: Valutrades)
While all these trade signals can be monitored without the assistance of technology, forex robots can be a valuable tool for the trader on many fronts, including the following:
- As the forex market you are trading may be open at odd hours, it can be helpful to have a bot acting on your behalf. Forex traders are famous for getting up at 2:00 AM to catch a market opening in another part of the world. While this ardor of forex traders is unlikely to ever go away completely, robots can help mitigate the necessity of making such odd hours a daily occurrence.
- Robots can help manage a high volume of currency pairs. If a trader is focused solely on one or two currency pairs, then a robot’s assistance may not be necessary. However, those who actively try to balance a dozen currency pairs simultaneously may need an element of automation to help stay ahead of the action.
- Robots can help traders be on time in executing their trades. With percentage in points (PIPs) being extremely small and capable of moving up or down with the slightest volatility in a nation’s currency, a robot may be necessary to execute a trade on time before the PIP moves off of its target point.
- The psychological barriers that hinder profitable trades are eliminated when using automation. Even the most veteran forex traders can let fear and uncertainty creep in to prevent them from executing their trading strategy “by the book.” Therefore, a forex robot can help avoid the emotional and psychological barriers that mar analytical trading.
Finally, on top of all of these benefits, forex robots can allow traders to take action on several more advanced technical metrics. Technical analysis metrics such as moving averages, relative strength indexes, and Bollinger bands are among the many advanced indicators that forex traders use to make profitable trades.
Most modern forex robots compatible with MetaTrader 4 can calculate these indicators and allow traders to plan and execute trades on any combination of these technical metrics much more profitably and expeditiously than they can manually or with external software.
Therefore, the most profitable forex robots of 2020 will have a healthy spectrum of the features mentioned above to assist forex traders in entering and exiting trades with the greatest efficiency possible.
The Most Profitable Forex Robots of 2020
Just as the proliferation of technology has allowed traders to trade forex from the comfort of their own home computers or smart devices, so too has it allowed software developers to unveil a wide array of robots and automated trading products.
Forex trading robots are beneficial to both novice and expert forex traders. Most are incredibly user-friendly and have features to meet the needs of traders of all ability levels.
However, regardless of the features and functionality that forex robots offer to help you make profitable trades, robots alone will not guarantee that you will make money in the forex markets.
It is important that you have your own strategy on how you want to trade forex and then use the forex robot to help you optimize this strategy for the greatest profitability. After all, if there were a truly infallible robot in existence that you could upload to your computer and passively let make money for you, then the developers would never release it and would keep all of the profits for themselves.
Trading in risk assets will always come with the threat of losing money, and the use of forex robots does not change that. However, the following robots have been helping traders get the most profitable returns in 2020:
Odin Forex Robot
In terms of forex robots that can most efficaciously help traders with little or no experience make money in the forex markets, the Odin Forex Robot is at the very top of the list.
Using a grid trading strategy developed by one of the world’s most profitable forex traders, the Odin bot makes regular trades at predetermined levels. It is said to have assisted users in capturing $150,000 in forex profits in August 2020 alone.
By employing a grid trading strategy, this bot can take advantage of trends in forex currency pairs. A grid strategy means that the bot automatically buys when the price of a currency rises a certain number of PIPs (say, 15 PIPs) above a set price point and sells each time the currency falls the same number of points below that same price point. This creates a “grid” that continues until the price hits a take profit or stop loss signal.
A significant advantage of the Odin Forex Robot is its ease of use. Even the most novice of forex traders can add this bot to their MetaTrader 4 software and watch as it carries out its grid trading strategy.
It also has a built-in calculator that can find the optimal lot size (size of order) to limit its traders’ risk exposure. Finally, the Odin Forex Robot uses Broker Shield technology that hides your trading terminal from brokers so that they cannot see what bot and software you are using and attempt to mimic your strategy.
At a lifetime subscription fee of $199, it is a relatively affordable piece of software whose cost pales compared to the returns it is capable of bringing traders.
The downside to the Odin Forex Robot, or any other robot that uses a grid trading strategy, is that without a reliable stop loss signal identified by the trader, the losses can mount quickly if a bad trade is entered.
While the Odin Forex Robot does have features that can increase the automation of these critical trade decisions, the user ultimately has the final say in setting such signal levels. So, you must understand how much risk you are willing to take and how much trust you want to put in automation.
Also, any forex trading robot that uses a grid trading system is likely to enter into many trades due to the volatility of currency pairs. So this high exposure can put a trader’s assets at risk and be challenging to keep track of if you are using the robot simply as a supplementary tool.
Vader Forex Robot
If you are looking for another strong choice to automate your forex trade decisions, the Vader Forex Robot may be a good fit for you.
Rather than rely strictly on a grid trading system, the Vader Forex Robot combines grid trading elements with advanced Fibonacci sequencing. In forex trading, Fibonacci sequencing is used to determine levels of support (a point at which price struggles to drop below) and resistance (a point at which price struggles to rise above).
While several different bots will use Fibonacci sequencing as part of their automation strategy, the Vader Forex Robot uses its unique Fibonacci levels as entry and exit points, as the bot recognizes such levels as overbought or oversold conditions. These levels can also help traders when setting take profit and stop-loss signals.
The Vader Forex Robot is another great option for forex traders with little experience. It is easy to install and can be set up to be fully automatic, including even the take profit and stop-loss levels.
It offers a “100% profit rate,” but buyers should take this figure with a grain of salt, as there is really no way to guarantee a rate of return in any risk market. However, with just over 1,000 registered users of this bot worldwide, the Vader Forex Robot did yield over $131,000 in total profits in August 2020, demonstrating that it can make money for its users.
At $199 for a lifetime subscription, this is another forex robot that can help users attain gains many times over the purchase price. However, it must be noted that a minimum account balance of $5,000 is required to use the Vader Forex Robot.
Reaper Forex Robot
The Reaper Forex Robot gets away from the grid trading system and utilizes a breakout trading strategy based on its automation software, making it arguably the best forex robot for returning considerable returns to its users, with profits as large as 200 PIPs possible in some cases.
A breakout trading strategy involves the Reaper Forex Robot looking for opportunities to enter into trades when a currency pair has broken above a long-standing resistance level or below a long-standing support level. Typically, when these key levels are broken, explosive price change continues in the same direction as the “breakout” before eventually settling into a range where a new resistance or support level is established.
Like the Odin Forex Robot and Vader Forex Robot, the Reaper Forex Robot is a strong choice for those looking for complete automation in their trade entrance and exit points. Its unique algorithms are well-versed at getting traders in a position to capitalize on breakouts.
The Reaper Forex Robot usually sells for $199 but does come with a money-back guarantee. It also comes with full customer support from its developers, so you will be able to get any questions answered to maximize the software’s full functionality. In August 2020, this bot helped users capture $97,000 worth of profit.
The downside with the Reaper Forex Robot, as is the case with any breakout trading strategy, is that losses can be painful when dealing with a false breakout. Essentially, stop losses need to be carefully monitored when trading breakout because a break of resistance or support does not always mean that an explosive trend is forthcoming. Those traders who wait too long for the breakout to fully commence can hemorrhage their accounts.
Furthermore, this bot may not work well with currency pairs that do not have well-defined resistance and support levels, or those currency pairs that do not trade in high volumes, which signals low liquidity and makes breakouts less likely. It is best to use when trading high-volume pairs—such as the US dollar and British pound—that have displayed a long pattern of identifiable resistance and support ranges.
GPS Forex Robot 3
The GPS Forex Robot 3 is one of the most innovative automated forex assistants on the market, with the ability to be configured into any one of 12 customizable trading styles and strategies. This is an outstanding feature that can make this robot appealing to traders with a wide range of risk tolerances.
Like the other choices on this list, the GPS Forex Robot 3 is extremely easy to set up and capable of completely automating your trading. At the cost of $149 for a lifetime license, it comes with automatic updates and notifications that can help you keep your trading strategy up-to-date and take advantage of any new features offered by the software.
Although the GPS Forex Robot shows that traders have currently experienced live gains over 300%, it is best not to trust its numbers; they have an incentive to post their statistics in a narrower context that will make the software look as profitable as possible.
Nonetheless, unbiased reviews across several forums show this robot can return as little as 5% monthly for more conservative traders and over 25% monthly for those willing to employ a more risky strategy. So, the GPS Forex Robot 3 is yet another potentially profitable bot, especially for those with smaller budgets, as it can be used with accounts as little as $100.
Onyx Scalper
The Onyx Scalper is designed with unique algorithms that strictly follow scalping rules, a trading strategy used by many forex traders that involves holding high-volume positions for a very short time and using a high quantity of small gains to add up to profitability over time.
The key tenet of scalping is the high frequency with which trades are placed, with positions sometimes held for as little as a few minutes. In addition, due to the high frequency of trades, some losses will be inevitable. The key is to limit the amount lost during these unprofitable trades and allow the greater number of successful trades to lead to a net gain over time.
Because of the high volume and fast-paced nature of a scalping strategy, a forex robot’s assistance is extremely beneficial in helping traders manage their portfolios, as tracking trades manually would be extremely complicated and time-consuming.
The Onyx Scalper helps in this regard by sending signals to the user of when to buy and sell. This is a slightly lower level of automation than some of the other bots on this list as the Onyx Scalper does not actually execute the trade for you. This requires the trader to still be actively engaged with his or her trading software while using the Onyx Scalper.
Although it is not 100% automated, it is still an excellent choice for traders of all ability levels, as it has a very user-friendly interface and customizable settings that allow you to set your risk tolerance. Its price is $147 for a lifetime license and offers a 30-day money-back guarantee and 24/7 customer support.
Another relatively new product that does not have much literature published about its profitability at this time, some users have reported being able to earn a full-time income by following the trade signals provided by this bot, although such claims should be considered dubious until more profitability data is known.
Forex Astrobot
The Forex Astrobot is another highly automated forex robot, with the possibility of 100% automated trading upon installation of the software.
The Forex Astrobot makes use of an effective trailing stop feature that allows a trader to exit a position once the price drifts a certain percentage away from the current market price. This will enable traders to keep riding a profitable trade but protects their gains if a price starts to correct.
Another interesting feature with Forex Astrobot is its money management option. With this feature, the software detects the significance of market volatility and adjusts lot size appropriately. When the market is volatile, the bot will make trades using smaller lot sizes, while increasing the size of a trade when market conditions begin to normalize.
The price range for the Forex Astrobot is listed between $99 and $199 for a lifetime license, keeping it relatively consistent with other forex robots in this review.
While the company reports an 80% “win rate” for the trades its automated bots enter, it is still a relatively new product that has not received sufficient reviews to determine overall profitability. Still, the company markets its trailing stop, money management, and unique trading algorithm as features that make profit “inevitable.”
How to Identify a Profitable Forex Robot
When shopping for profitable forex robots, there are several essential points to consider.
First, there is not a ton of information known about forex robots’ long-term profitability, as even the more known quantities, such as the Odin Forex Robot, are still relatively new pieces of software.
In fact, with the boom in interest for retail trading caused by the COVID-19 pandemic, it can be argued that the performance of forex robots is heavily skewed toward the results that have transpired in the market over the past six months, which have been mostly favorable.
However, with that said, many leading experts in the forex community advocate for the use of a quality bot to at least assist you in your forex decision making. With software and technology helping people in all walks of life optimize their business models and improve personal performance, it stands to reason that the proper use of bots in forex trading will also help you optimize your portfolio.
Because the merits of forex robots are manifold and the industry is still relatively new, there have been several unethical entities claiming to have profitable bots and/or use the name of more reputable providers for marketing their product.
These companies will make the same promises of profitability as legitimate bot providers but take your subscription fee and vanish from existence. Therefore, remember the following pieces of advice when choosing a forex robot for the first time:
- Read as much literature as possible about forex robots and choose a recognizable name in the community.
- Trust bots that publish information about their developers. It is preferable to choose a bot that was developed by a successful forex trader and follows his or her specific strategy for profitability.
- While the high levels of automation can be beneficial to beginners, it is best to have at least some idea of how trading forex works and choose a bot that can mirror the same type of strategy you would employ manually.
- Use the bot with small account balances until you are comfortable with all of its features and functionality.
- Try to reach out to customer service before making your purchase. Do not trust a company that does not publish customer service information and/or will not respond to customer service requests.
Conclusion
With the proliferation of technology and interest in at-home trading, there have been hundreds of automated forex robots hit the market in recent months. By using proven forex trading strategies shown to improve profitability by making split-second trades and eliminating the emotional barriers that hinder even the most expert forex traders, robots are becoming a must-have addition to any trader’s software. However, not all forex robots are created equal. It is vital to find a bot from a known developer that offers strategies and features complementary to the trader’s particular style. To this effect, the Odin Forex Robot, Vader Forex Robot, Reaper Forex Robot, GPS Forex Robot 3, Forex Astrobot, and Onyx Scalper offer a strong cross-section of features that can help a forex trader achieve profitability.
