Introduction to Forex bots
Well, let's start at the beginning to make sure all the concepts are clear and you know what you are doing.
What is a broker?
A broker is a person or institution that organizes transactions between buyers and sellers -an operator or trader- and a financial asset of one of the existing markets. Although the subject is very broad, we are interested to know that there are institutions or companies where you can buy and sell shares or other financial products, such as currency pairs in the Forex market.
How to trade in a broker?
When we trade with a broker, basically what we are doing is buying or selling something, in this case, that commodity we are going to call EURUSD - Euro vs US Dollar pair.
Brokers usually offer the possibility to perform sophisticated operations such as buying when the price has a certain value, selling if we have X profit or a certain loss... Or the other way around! We can also sell when we do not have the asset and buy it when it has fallen in price. With the combination of these operations of buying and selling is how you can make a profit whether the price goes up or down.
Winning "only" depends on: your knowledge, your psychology, your skill, your practice, your experience, your ability to concentrate, to observe, to measure the impact of macro and microeconomic changes, to have soaked in technical and fundamental analysis and to know how to apply it, the knowledge of the correlation between markets, the risk management you do, the mathematical expectation of your operations, that you have a reliable, proven system with a positive mathematical expectation or that you have a set of systems that minimize your losses and increase your profits, the graph of the financial asset you are investing in, its past behavior, volatility, etc. Do not panic.
This and much more is what a market professional knows, internalizes and automates. It is his job and we are not going to ask you to make it yours, at least in this tutorial.
What is a bot, Expert Advisor or Expert Advisor?
A bot, robot, Expert Advisor, EA or Expert Advisor is a computer program. With greater or lesser complexity, it is software that makes buying and selling decisions. When a person uses a bot, what he is doing is telling the program to buy and sell for him. Bots are continuously reading the market and making decisions as events occur.
Bots, or automated investment programs, can become very sophisticated. Bots can be aggressive, conservative, seek maximum profit or find patterns in the market, among many other things. They can perform highly complex calculations and make decisions in milliseconds. In addition, they have the advantage of being able to watch the market 24 hours a day, they are not stressed by it and make their decisions with total coolness.
Open a brokerage account
In order to use a Forex trading bot, the first thing we need is access to the Forex market. So our first step is to sign up with a broker. It is as easy as clicking on this link registration at RoboForex or in the banner below.
The broker is the "place" where we can trade with our money, buy and sell. As we have already said, the brokers -or brokers- are the companies that are going to give us access to the financial markets. You trade and they take commission on your trades.
Each of the existing brokers has its advantages and disadvantages, but this is not the subject of these articles.
In our case, we will use RoboForex, a broker duly regulated, with sufficient time in the market and with very suitable conditions for the type of Expert Advisor we will use.
To trade with a broker, it is necessary to open an account with him. There we will deposit the money to work with when we feel comfortable with the bot and we have understood how it works.
To trade with our Ducibus Forex trading robot, you must open an account with RoboForex with an affiliate code from us.
What is a broker's affiliation for?
Membership has several objectives, the main one of which is that we we have to eat and believe me, we are gluttons. Being our affiliate assures us that when you are trading in the market with our investment tool, the broker will be paying us a fraction of their profits for the mere fact that you are trading with them.
Our current conditions for trading with Ducibus imply that the accounts that users of the free forex robot trade under our affiliation.
Affiliated Accounts VS Spread Enhanced Accounts or Referral Accounts
There are different types of account affiliation. Depending on the use of one type of account or another, we will be paying the broker more or less commission for each of the operations that he provides us with in the market.
On the one hand, there are the affiliated accounts we use with our Ducibus bot users: the Pro-Cent and Pro-Standard. These affiliated accounts do not pay any extra commission for trading with them. In other words, the broker will charge you the same for using an account, whether it is affiliated with us or not.
On the other hand, in order to make the intermediation between the broker and the user more profitable for the intermediary, the following are also available increased spread accountsalso known as referred accounts. The client of this type of account, in exchange for a service provided by the broker, such as advice, signals or an Expert Advisor like Ducibus, pays more spread for his trading, which translates into more profit for the broker. We do not use this type of accounts.
Being affiliated to our accounts, not only allows us to earn a living. It also helps us to be able to offer better commission conditions to certain clients and allows us to have a proper statistical control of the use of our tools. In the end, it helps us to continue to evolve our bots and allows us to continue with a zero-cost price policy.
Once you have registered with the broker, you will be asked for a number of documents to verify your identity. Then you will have to open your new trading account. You can also start trading and then send the requested documentation.
Pro-Cent VS Pro-Standard Accounts
Depending on the amount of capital you intend to trade, we will open a Cent or Standard account.
The difference between the two is that Cent accounts allow trading with fractions of the base currency of our account and are therefore more suitable for anyone who wants to trade with a Forex robot with a minimum investment. On the other hand, the minimum volume per trade varies, with Pro-Cent accounts having 0.1 lots and Pro-Standard accounts having 0.01 lots. Later on, we will see what these lot sizes mean.
Both in performance testing and in capital, leverage and risk management - concepts that we will also be looking at in the following articles, Ducibus bot should be operated with a minimum of 200 units of base currency -USD, EUR, mBTC- for each pair. to operate in case of using a Pro-Cent account.
This minimum amount should therefore be:
- 2000 USD, EUR or mBTC in case you are using a Pro-Standard account, for each pair on which you are going to use Expert Advisor Ducibus.
- 200 USD, EUR or mBTC in case of using a Pro-Cent account.
Keep in mind that you will always be able to trade on Cent accounts with much higher capital than the minimums we are describing. However, with Standard accounts, the minimum capital should not be reduced.
Since the spread and commission conditions between Pro-Cent and Pro-Standard accounts are the same, our advice is that, when in doubt, use Pro-Cent accounts.
Base currencies supported by a broker
Each broker has its own rules on how an investor should trade with them. The broker that we work with, carries operating since 2009 in all types of financial assets.
RoboForex allows you to trade with accounts whose base currency is in USD, EUR, GOLD, BTC and ETH. If you own cryptocurrencies, you can also fund your accounts with Bitcoin or Ethereum and withdraw funds directly to your crypto wallets.
At the time of writing this article, RoboForex covers more than 9,400 different trading instruments in financial markets as varied as Forex, stocks, indices, ETFs, commodities, metals, energy, cryptocurrencies and crypto-indices.
It has not only the experiencebut with the regulation provided by the IFSC, has at its disposal segregated accountsis part of the Financial Compensation Fund and, in general, with everything it takes to be a reliable broker and with operating prices adjusted to the needs of the users of our products. Do you want to know who is RoboForex?
Demo trading accounts
Some brokers, including RoboForex, also allow us to work with virtual money, i.e. they allow us to "pretend" that we are buying and selling to test our financial skills.
This is achieved through the use of "demo" accounts. This is an advantage when we want to learn or test. Demo accounts do not involve any risk because we are not using any money - neither ours nor anyone else's.
If you want, you can use a bot in a demo account to see if you are convinced how it works or to be subjected to a process of backtesting.
Using an Expert Advisor on demo account is not necessary but recommended. The advantage of the demo account is that we can experiment with our bot. Ducibus ProIf you are interested in the product, try before you start investing with real money with the different configurations. This way you can decide which one you like best or best suits your purposes and avoids having to make a real investment in a product that might not fit your needs.
Using a robot in MetaTrader
The next step we have to do is to download the MetaTrader 4 software from the same broker where we have opened our account in order to install our brand new robot. In this case RoboForex.
Any current version you may already have installed will do, although you will have to configure the servers yourself. However, to download a clean version of MetaTrader 4 or MetaTrader 5 from the broker, you can go directly to this link. Everything comes preconfigured and all you have left is download, activate and configure the bot.
What is MetaTrader?
MetaTrader is a tool developed by Meta Quotes Software Corp. which is used for trading on different brokers, both for charting and trading.
This software has a lot of added functionalities that make it easier for investors to make decisions. As we have already explained, in a broker you can buy and sell financial assets, but for that we need a suitable platform.
MetaTrader has tools that other platforms are not able to offer. Among others, it allows us to make use of customized indicators or to include in our operations any type of Expert Advisor, as is the case of Ducibus bot.
Metatrader itself is not essential for trading in a market. It is just another tool that investors use for their benefit. However, our bot is programmed in mql4 and mql5 language and therefore, it is designed specifically for MetaTrader, that's why you will need it.
Easy unattended investment
If the concepts we have outlined seem too complex or if your style as an investor requires less complication, we offer other ways to use this tool - and others. You can see the article by Social Tradingalso known as Botvesting Social Trading.
The The free Expert Advisor Ducibus is a robotbot, expert advisor, automated system, software or computer program for the trading platform or investment in financial assets MetaTraderwhich uses more or less complex algorithms and works automatically.
Ducibus is used to invest in the Forex market and thanks to its versatility it allows you to generate significant income on a constant basis with little or no user intervention.
In short, Ducibus bot is an automatic trading tool based on an investment strategy. Its algorithms allow it to make autonomous buy and sell decisions on the Forex financial instrument once it is running, which allows to obtain a passive profit.
For us it is the best bot in its style in the market. The good thing is that it is also free for anyone who wants to use it or test it.
Want to try a Forex robot?
With Botvesting you can try the best Forex robot you can find, valid for automatic algorithmic trading, manual trading and assisted trading.
Search, compare and if you find it, let us know. Don't you believe it?
Try it because Ducibus Pro is free on both live and demo accounts.