Trading in the Forex market is not an easy process. You will have to learn a lot about fundamental and technical analysis and about various nuances of trading and Forex market in particular. The automated Forex software will not help you with this task. It is a rather bad way to learn, especially if you are new to Forex. The expert advisor, even if profitable, should be configured adequately and optimized according to the new market conditions often. A newbie trader simply is not capable of doing it without enough experience.
Setting the correct input parameters depending on the currency pair, timeframe and conditions you are trading on is very important. A Forex expert advisor (robot) should be able to function in 100% accordance with the market. Adding it to different pairs will also require a tuning of the parameters but will lead to more gains.
For a new trader, it always looks attracting to set up the Forex robot to trade on all currency pairs present in the platform, but the more pairs it will trade on, the more optimization and fine-tuning it will require. And the Forex newbies are not usually capable of following so many currency pairs at a time. Expert traders recommend focusing on one or a maximum of two currency pairs at a time to get more understanding of how foreign exchange trading works.
Another problem is introduced by the Forex brokers. Not all brokers offer possibility of automated Forex trading, while some of them outright forbid it, and others limit the functionality offered by such software. If at some point you decide to start trading with some automated expert advisor, you will need to do a thorough research on Forex brokers, finding the one that will accept your robot with its method of trading.
The majority of the Forex robots on the market are paid ones and are sold by not very honest marketing people. They promise a lot but usually deliver little (with many cases of a complete account balance loss). Spending money on such Forex software is nothing but a waste of funds. If you are sure that you need to get some automated expert advisor for currency trading, it is always better to opt for a free one first. Anyway, paid Forex robots are almost always based on the free versions — their "authors" just attach a well-sounding name to it and stick a price tag.
If you actually decide to start your automated Forex trading — be it with a free robot or a paid one — it is always better to test it on a demo trading account first. With a demo account, you do not lose real money, but you will be able to see how your FX robot performs. Although trading execution can be different on the real accounts of your broker, demo trading will give you some basic hint on the matter.
The last, but not the least in its importance, problem of using the automated software for currency trading is that such programs should be running constantly without any interruptions. For that, you will probably need a dedicated server called VPS because your home PC will probably require rebooting and restarting from time to time. A good Forex VPS can be pretty expensive and also require some experience to use. For a completely new trader, it can a very difficult (or too expensive) task to set up a VPS with a working expert advisor running on it.
by Andriy Moraru
It is easy to get started in Forex trading, but it is not a good idea to do it with a Forex robot, especially with a paid one. It is recommended to study some basic materials on Forex for dummies before opening an account with your first Forex broker. Automated trading is nice, but it is advised to take it only as a second step once you can be profitable in manual currency trading.