Frequently Asked Questions
Some additional frequently asked questions
1. Are bots profitable?
A good bot with acceptable risk designed to work over all market conditions can make around 5-10% a month on average. Anything more than this and I generally feel too much risk is being taken and the bot will not last in the long term. Now y
2. How much money can you make with a trading bot?
All bots require starting equity, some have a minimum of $5000 to work properly, other bots can be started with less equity, but generally $1000. There are a handful of common different strategies, but they can be applied in many different ways. A good bot that will last the length of time will average 5-10 % a month.
3. Are bots legal?
Absolutely yes! Bots of all types are allowed if your broker accepts them. Forex bots you will need a specific broker that allows your software. Forex trading is legal but each country does have different regulations that you should check.
4. Do professional traders use bots?
It is very hard to tell who uses a bot, but it is estimated that 80% of the Forex trades are initiated by bots. Most of the Forex trading is done by institutions or governments, retail traders in Forex are minnows.
5. How much do trading bots make in a day?
A good Forex trading bot should make on average 0.5% a day, 2.5% a week, 10% a month or 120% a year (on average, not compounded). Bots designed for a sideways market can make more in a day, but will have issues on a trending market where price only goes in one direction.
6. How successful is a trading bot?
Most good Forex trading bots will win 70-80% of the trades they make, some will make over 80% win rates. An important factor to consider when evaluating trading bots is how does it manage loosing trades? There are many ways to manage a loosing trade, and if done correctly can be very profitable.
7. How much does a Forex trading bot cost?
Most Forex trading bots that work for the long haul over all market conditions are in the $1000-$4000 range. There is no correlation between bot price and performance, and there are additional factors that should be considered when evaluating a bot to use for trading.
8. Which trading bot is the most profitable?
Forex markets are constantly changing, one month it will be JPY pairs with high volatility, other months it will be USA pairs. Mostly due to government factors moving the markets. That is why I believe it is important to have many bots that have different strategies, running on different timeframes, trading different Forex pairs working for you, not just one trading bot. You should work up to having 5 different bots working for you, which I feel is also a good risk mitigation strategy.
9. Are AI trading bots real?
I have not seen a AI trading bot that is using AI when the market is live at the retail level. Some may haven been programmed with the help of AI, but I feel most of the bots available to retail which claim to be using AI are just using it as a marketing gimmick. Especially so with bots on the MT4 or MT5 platform.
10. Do Forex Robots and EA's really work?
There are Forex bots or EA's that have been running successfully for over 3 years. Some will return in the 2-5% range a month with very low risk, others will return on average 10-15% a month but take on more risk, that can be managed if done correctly.
11. What securities are there bots for?
For retail folks, bots started out with Forex when MQL software was released over 25 years ago. Today you can get bots that trade Crypto, Options, Stocks, Futures and of course Forex.