Many traders who have been tempted to try one or more of the large number of Forex Robots on the market will have been disappointed with the results relative to the hyped up claims. People are tempted by the allure of having an automatic trading butler doing all the hard work in the background while adding equity to your account on auto pilot. The actual experience of most traders however is far from this rosy picture. Postings on various forums will testify to this where you will find many forex robots performing well for a period and then go flat or start eroding the equity in your account. Even the more recent adaptive forex robots designed to work in a variety of market conditions have failed to deliver.

There are a number of possible reasons for this. The relative value of a currency is in essence a temperature check of that country (or group of countries like the EU) vs. another country. It is also a reflection of global macro economic trends and events. An outbreak of war, a terrorist attack, a drought a spike in the oil price, the release of economic data or a national election will all impact the relative value of one currency vs. another. Such events are happening all the time which result in fluctuations in currency values. Professional traders are tuned into these events and will adjust their trading strategy accordingly. Unfortunately a Forex Robot has no idea about these events and therefore can only reaction to price movements and predict what will happen next based on historic price patterns.

Since no Forex Expert Advisers on the market today is sophisticated enough to predict global economic disruptions they rely on technical analysis to try and identify price patterns and trends to predict when a price is likely to change direction, and signal a trading opportunity. The best forex robots will use a blend of indicators born out of technical analysis to try and emulate a real live trader in an EA. They will also deploy a range of tools such as scalping, trend following, breakout and grid trading. Newer products such as Forex Bling appear to me the best equipped to do this in the long term.