The most successful traders have strong systems in place. They analyze data to find appealing opportunities, then move quickly when those opportunities arise. But here’s a secret: they also use artificial intelligence (AI) trading bots to automate time-consuming manual processes.
These bots can analyze huge quantities of historical trading data quickly and accurately. They then place and manage trading activity at lightning-fast speeds.
AI trading tools have compelling use cases across all types of financial markets. But they’re especially helpful in cryptocurrency and Forex trading. Crypto markets are notoriously volatile, as huge price swings create incredible moneymaking opportunities. Forex markets move quickly and are open 24 hours a day. Retail traders can use bots to manage their trading activity around the clock.
What Are AI Trading Bots?
AI trading bots are automated software tools that use algorithms to complete trades. Users set parameters that define the precise circumstances under which the bot will make a trade. Investors align these parameters with their favored trading strategies. Common parameters specify things like:
Price points at which to buy and/or sell
Order volumes at which to buy, sell, or hold
Some AI trading bots also account for market indicators, like moving averages and relative strength index (RSI) scores. When the market conditions for your asset align with your parameters, the bot will act on your behalf. You can use bots to manage automated Forex trading, cryptocurrency, stock market, and index trades.
It’s critical to use a trustworthy tool backed by social proof and a verified track record of success. To that end, here are five well-reviewed and popular AI trading bots to consider.
Designed specifically for Forex traders, Forex Fury supports strategies across the entire risk tolerance spectrum. It’s compatible with MetaTrader 4 and 5.
On its standard setting, Forex Fury trades for one hour each day, from 4 p.m. to 5 p.m. Eastern time. Its developers believe this time window is the ideal time for AI trading bots to operate. But you can adjust those settings to make the bot active across any time frame you choose.
Forex Fury supports all major, minor, and exotic currency pairs. You can also use it to trade cryptocurrencies and indices.
Configuring Forex Fury is easy. The software lets you specify parameters such as:
Take-profit and stop-loss settings
Maximum spreads and slippage
The number of open/active orders
Forex Fury also supports backtesting. Users pay a flat, one-time fee that covers all future software updates and upgrades. However, free trials aren’t available, and customer support is by email only.
OKX Trading Bots
OKX is a cryptocurrency derivatives exchange based in Seychelles. It mainly appeals to experienced traders who are comfortable with advanced trading strategies.
The exchange offers an AI trading bot that supports multiple trading modes, such as:
Time-weighted average price
You can also use the OKX bot to copy the trading strategies used by advanced pros. This may help less experienced investors because it removes a lot of the guesswork involved in defining parameters.
OKX offers access to a large selection of free AI trading bots. They’re easy to use, but functionality is limited to OKX exchanges. Also, investors based in the United States and Canada don’t have access to OKX exchanges.
Learn2Trade’s AI trading bots let users complete cryptocurrency trades 24 hours a day. The company also offers algorithms that monitor global crypto markets around the clock and alert you to trading opportunities that match your stated parameters.
With a Learn2Trade bot, you can use your preferred monitoring system to make trades automatically. According to Learn2Trade, the company’s signature cryptocurrency algorithm has a 79% accuracy rate. Strong Trustpilot scores indicate that crypto-focused day traders are happy with its performance.
Users can choose from one-month, three-month, six-month, and lifetime subscription plans. Each option offers:
Up to 70 trades per month
24/7 trading on global cryptocurrency markets
Copy trading functionality
Managed risk-reward ratio features
You can set up Learn2Trade’s AI trading bots in just 10 to 15 minutes. On the downside, Learn2Trade’s platforms only release their trading signals through a dedicated Telegram channel. This adds an extra administrative layer that some users find off-putting. Bot fees are also on the expensive side, especially for new traders with limited funding.
The Mizar cryptocurrency trading bot makes it easy to get started. Simply create an account, connect to your selected exchange with a secure API key, and start trading.
Key features and functions include:
24/7 buying and selling
Precision take-profit and stop-loss settings
Copy trading compatibility
Market condition monitoring tools to help you pinpoint times to adjust or change your trading strategies
Mizar has a non-custodial structure. This means that the funds you use to make trades never actually leave the exchange wallet or account where they originated. So, you can trade with confidence in the security of your funding.
You also won’t pay fees upfront. Mizar uses a commission-based structure, which collects fees based on trading volume and your use of supported trading strategies.
Mizar is easy to use, has an excellent reputation, and charges affordable and reasonable fees. It’s also a good choice for novices. However, it’s a relatively new platform, and the jury is still out on its long-term performance.
Forex Gump is for Forex traders. It supports 25 different currency pairs, including both major and minor currencies. You can use it to trade on charting time frames as short as one minute or as long as four hours. Traders can also choose from high-, medium-, and low-risk modes, so you can customize your risk exposure.
On the plus side, you can start using Forex Gump with any amount of money. You can also create demo accounts to practice and take advantage of a 30-day money-back guarantee offer.
But Forex Gump does have a few downsides. The developers haven’t published backtesting data, so potential users can’t research its success rates. However, traders say the bot helps them secure profits on a consistent basis. Broker support for Forex Gump’s AI trading bots is also relatively limited.
Using AI Trading Bots: Best Practices
AI trading bots are helpful tools, but they aren’t always accurate. They also carry risks. You can minimize and mitigate those risks by following some standard best practices:
Choose a strategy that aligns with your risk tolerance and trading profile. Common strategies include arbitrage, market-making, and trend-following.
Be conservative when selecting your risk management parameters, especially at first.
Backtest your strategy with historical data before trying it on live markets.
It’s also wise to adjust your strategy when market sentiment shifts. The best AI trading bots can detect changing market sentiments, so be prepared to adjust when these shifts occur.
Refine Your Trading Strategy in a Fortunes Funding Challenge
AI trading bots are powerful tools you can use to execute a well-thought-out trading strategy. To refine your strategy, you need practice in a lower-risk environment. That’s what Fortunes Funding offers.
With its ability to curtail human errors and emotions, automation makes Forex trading more efficient. At their best, these automated Forex trade bots work around the clock so you don’t have to. They follow rules without a hint of emotion, making sure your trades don’t get bogged down in decision paralysis.
But Forex trade bots have their limitations too. Let’s take a look at what these bots can do—and whether it’s actually worth investing in them.
What Exactly Are Forex Trade Bots?
Forex trade bots are essentially software programs designed to handle the nitty-gritty of trading currencies. They automate trading processes, performing the heavy lifting of scanning market data, spotting trends, backtesting data, and executing trades at lightning speeds.
As these bots are designed to operate without human intervention, they execute buy and sell orders based on predefined strategies.
Types of Bots
There’s a huge range of trading bots in the Forex market, each serving different purposes:
Trend-following bots use technical indicators to identify and follow the prevailing market trends. They backtest data to determine the direction of the trend and execute trades accordingly.
Grid trading bots use a simple strategy of placing buy orders above the current price and sell orders below the current price at predefined distances. The bot captures profits with fluctuation within this grid.
Scalping bots use a similar grid trading strategy to make tiny profits from minor price movements. They execute numerous trades in a day to exploit small price differentials.
News trading bots are designed to react quickly to market-moving news events and place trades based on the impact.
High-frequency trading(HFT) bots execute large volumes of trades within milliseconds. They sometimes also act as liquidity providers, constantly quoting buy and sell prices to facilitate trades in the market. However, HFT bots are controversial as they contribute to market volatility.
Arbitrage bots take advantage of minor price discrepancies between different markets or assets. They simultaneously buy and sell in different markets to profit from the difference.
Mean reversion bots are based on the principle that prices tend to revert to their historical average over time. These bots identify overbought or oversold conditions and execute trades with a similar expectation.
Machine learning bots adapt their trading strategies based on evolving market conditions.
Do Forex Trade Bots Give You An Advantage?
Forex trade bots definitely have their advantages; however, their effectiveness depends on various factors. Let’s assess the pros and cons to see if they actually give you an edge over other traders.
Pros of Forex Trading Bots
Speed: Bots can analyze market data and execute trades at a pace far beyond human capabilities. This gives traders a huge advantage as the bots react swiftly reactions to changing market conditions.
Efficiency: These bots are designed to operate continuously without the need for breaks, something traders physically can’t do. This lets one capitalize on every opportunity that arises. Once you set your predefined strategy, the bot will make sure to capture every opening for a profit.
Stoicism: Emotions can cloud the judgment of even the most seasoned trader—and present a leading cause of impulsive trades resulting in financial losses. But unlike humans, algorithms are not swayed by emotions. They strictly adhere to predefined strategy and execute trades based on logic and data analysis. This is a big advantage for traders who are unable to maintain discipline.
Stress Reduction: Another advantage of these bots is that they reduce the emotional toll of trading. You won’t have to be stressed about constantly following the charts.
Cons of Forex Trading Bots
Despite their advantages, forex trading bots do have their drawbacks. Let’s unpack the potential downsides of hinging a trading strategy on algorithmic planning.
Artificiality: Artificial intelligence bots are, well, artificial. Unlike humans, they cannot judge the market or use critical thinking to analyze the sentiment. They are only designed to execute orders as told and cannot adapt to rapidly evolving market conditions. They lack intuition, a crucial aspect of decision-making.
Error-Prone: If the operating algorithm isn’t strong, bots may fail to account for any number of market factors. Bots are susceptible to errors because of a weak algorithm, which may lead to financial losses.
Over-Optimization: Bots backtest a large volume of historical data to predict future price movements. This carries a risk of underperformance—they are designed to align with historical data patterns, but market dynamics have unforeseen factors not coded in their algorithms.
A Lack of Fundamental Analysis: While bots excel at technical analysis, they are not good at understanding or incorporating fundamental news events that impact currencies. Understanding the fundamentals will tell you the intrinsic price of an asset and how valuable it will be in the long term. Bots don’t have the skills to make this judgment.
Expense: Employing bots as part of your trading strategy can be a costly affair.
Fairness: HFT bots in particular have a bad reputation for market manipulation and increasing volatility. Moreover, they are unfair to retail traders as they expose them to artificial market swings. Almost every prop firm bans HFT trading for this reason.
So, do Forex trade bots give you an advantage? While theoretically bots appear to have significant advantages, they often underperform in live conditions and don’t have the emotional intelligence to make clear trading calls. They may help if you do your due diligence; however, it’s not prudent to rely solely on bots to make a profit in the Forex market.
Best Practices for Using Artificial Intelligence in Your Portfolio
Employ bots with different strategies, such as trend-following, or mean reversion to minimize risk.
Always monitoryour bots’ performance and adjust parameters as needed. Markets evolve constantly, so you’ll need to tweak strategies based on real-time data.
Establish risk management practices to protect your capital. Always set stop-loss orders.
Backtestthe bot using historical data to ensure it interprets your strategy correctly.
Use bots that are ethical and compliant with regulatory frameworks so your capital doesn’t come under risk.
Establish Your Simulated Trading Strategy With Fortunes Funding
AI Forex trade bots are in vogue, but they can’t serve as a total replacement for your own trading strategy. There are certain calculations of the landscape that an algorithm just can’t make—not to mention that bot trading (HFT in particular) upends the playing field for other traders.
At Fortunes Funding, we discourage the use of AI trading. We pride ourselves in providing a level playing field to all our traders, regardless of whether they are newbies or seasoned pros. Using AI to assist in simulated trading puts others at a disadvantage and goes against the spirit of our Challenges.
Fortunes Funding is an open and inclusive trading environment that values traders who take the time to learn the intricacies of the Forex market—and execute simulated trades based on their research. Try your (human) strategies on our Challenges today!
Automated Forex trading uses intelligent software to analyze market data, identify trading opportunities, and complete orders. It also offers considerable profit potential, especially for investors with adaptable trading strategies.
On trading days, global currency markets run on 24-hour schedules. Breaking news and other market-making events can also happen at any time. But Forex traders can use automated technologies to trade during their personal downtime—even while they’re asleep. As a result, they’re well-positioned to take immediate advantage of these developments, no matter when they occur.
Automated Forex trading offers many compelling advantages. However, not all automated trading platforms are created equal. So, perform careful research before selecting one. This guide offers tips, strategies, and best practices for getting started with automated currency trading.
How Does Automated Forex Trading Work?
The basics of automated currency trading are easy to understand. You choose a program or platform, and then configure it to execute trades when certain signals or market conditions occur. These platforms then make trades automatically, so you earn profits without taking any direct action beyond setting up and adjusting the platform’s trading parameters.
Automated trading platforms are popular with individual investors like day traders and retail traders. Similar platforms are also available for cryptocurrency trading, which is notorious for wild price swings. Though volatile, cryptocurrency markets offer enormous profit potential. With the right techniques and technologies, you can position yourself to cash in on major market movements.
All automated Forex trading platforms use signals to detect trading opportunities. Examples of market signals include:
Spread Discrepancies: The “spread” is the difference between the ask price and the bid price for a certain currency pair. If one brokerage has a broader spread than another, traders can pounce by taking advantage of the difference to earn easy profits.
Price Trends: Price trends describe consistent upward or downward movements in currency pair pricing over a set time. Trends create a kind of trading momentum known as price persistence, in which tradable asset values tend to continue moving in an established direction.
Breaking News: Geopolitical events, economic data releases, and many other types of breaking news can have an immediate impact on currency prices.
Forex trading software automatically analyzes these and other market signals. It will then instantly place buy or sell orders when certain signals occur or when specific market conditions are met.
Executing Trades With Forex Software
Trade execution processes occur automatically. When you set up your software, you can identify specific criteria to define conditions under which you want the trading platform to place a buy or sell order. When the parameters you identify are met, the software will automatically complete the trade without requiring any further action from you.
Benefits of Automated Forex Trading
Automated Forex trading makes it easy to implement a disciplined trading strategy and stick to it. Discipline can be a problem for both new and experienced Forex traders. But with automated platforms, you’ll avoid second-guessing and the missed opportunities that can accompany “analysis paralysis.”
Removing the human element from trading in favor of automation brings several other benefits as well. For instance:
Increased Efficiency: Traders can use automated platforms to execute orders at instant speed. This added efficiency helps investors maximize their profits when dynamic factors impact price movements.
Removing Emotion From Trading Decisions: Emotional reactions to both positive and negative market movements often lead to suboptimal trading decisions. Automated platforms make it easier for traders to overcome their emotions and base their activity on technical fundamentals rather than knee-jerk reactions.
Strategic Consistency: Sticking to a specific trading strategy tends to yield the most favorable results over time. Automated software helps investors avoid the temptation to abandon established strategies and chase market trends that may detract from their goals.
Stronger Risk Management: Traders can use automated platforms to establish firm stop-loss orders and other parameters based on predetermined risk analysis. The platform will respond as ordered without any further intervention, which can limit losses when the markets go against the trader.
Round-the-Clock Activity: Automated Forex trading platforms don’t sleep, eat, or have day jobs or social lives. All they do is trade, and you can use them to execute your trading strategies 24 hours a day.
Best Practices for Selecting Automated Forex Trading Software
Traders have a broad range of automated Forex trading tools at their disposal. To choose the right one, closely assess the platform’s compatibility with your trading style and goals. The following tips can help you find the automated Forex trading platform that makes the best possible match:
Assess Your Needs
Different platforms have different strengths. Some are designed for beginners. Others are replete with advanced, precision features. You can also get platforms with specialized features for particular types of currency trading, such as cryptocurrencies and exotic currency pairs.
Identify exactly what platform features will most closely match your trading style and strategies, then seek out options with strong support for those features.
When it comes to automated trading platforms, social proof is huge. Check authoritative and reliable user-generated reviews of any platform you’re considering. Look for evidence of reliability, strong and accurate performance, and the availability of technical and service support.
When performing your cost analysis, look at more than just the immediate expenses associated with platform purchases or subscriptions. Check to see how much trades cost when executed over the platform. If you’re highly active, these costs could have a major impact on your bottom line.
Take It for a Test Drive
Trustworthy providers typically offer users the chance to try out the platform before buying. Demos sometimes come with limited functionality. Still, you’ll be able to get a clear idea of how smoothly the platform runs and whether it’s a good match for your trading needs.
Want to Become a Professional Forex Trader?
Automated Forex trading platforms offer a long list of helpful functions, tools, and features that help traders earn more consistent payouts. If you want to become a professional Forex trader, these platforms can help you build experience while still operating with important guardrails and risk management practices in place.
When you’re ready to take the next step toward a funded trading career, connect with Fortunes Funding. Take a one-phase or two-phase challenge, hit your payout targets, get a virtual funded demo account, and start trading.
Funded trading challenges give you a chance to test your trading strategy and earn evaluation firm financing. For instance, Fortunes Funding offers both single- and dual-phase challenge programs specially geared toward cryptocurrency and Forex traders. Those who pass will be invited to become funded traders with access to as much as $500,000 in Fortunes Funding virtual capital.
Before you begin, it’s important to understand how the one- and two-phase challenges work. You should also familiarize yourself with Fortunes Funding documentation requirements and the payout rules that apply to challenge winners who become funded traders.
The One-Phase Funded Trading Challenge
Fortunes Funding’s one-phase challenge allows both crypto and Forex specialists to put the strength of their trading strategies on full display. It features an unlimited trading period and a minimum trading period of just one day. This gives successful traders an efficient route to earning.
Participants pass the challenge by meeting a payout target of 10%. You can use leverage of up to 30x, but you lose the challenge if you incur a daily drawdown (loss) of 3% or a maximum drawdown of 6%.
Simulated accounts start at $5,000 and go as high as $200,000 in currency. Bonus fees available upon becoming eligible for your initial payout, you will receive a one time bonus equivalent to your initial challenge fee.
The Two-Phase Funded Trading Challenge
The two-phase challenge has a challenge stage and a verification stage. Pass the initial challenge, then you’ll move to the second stage that tests your abilities an additional time.
Compared to the one-phase challenge, the payout targets in both phases of the two-phase challenge are lower and more accessible. In fact, the verification stage’s payout target ranks among the most attainable of any major funded trading challenge program.
In both phases, participants have an unlimited number of days to pass the challenge, and no minimums apply. Here are the rules for phase one:
Payout target: 9%
Daily drawdown: 5%
Maximum drawdown: 10%
You cannot use leverage in phase one of the funded trading challenge, but you can access up to 100x leverage in phase two. To pass the second phase, you must satisfy the following conditions:
Payout target: 4.5%
Daily drawdown: 5%
Maximum drawdown: 10%
For the two-phase challenge, simulated accounts start at $5,000 and go up to $300,000. As with the one-phase challenge, refundable fees rise on a sliding scale as you choose a higher initial balance in your simulated account.
Regular and Swing Trading
Participants in the two-phase funded trading challenge can also opt for regular or swing trading. In regular trading, neither weekend holding nor news trading is allowed.
However, weekend holding and news trading are both permitted in the swing trading challenge. But leverage is capped at 30x rather than the 100x available to regular traders.
Important Things To Know Before You Begin the Fortunes Funding Challenge
Before you enroll in the Fortunes Funding challenge, consider the following FAQs as you decide whether the program is right for you:
What platforms do participants trade on?
Participants in the funded trading challenge use the ThinkMarkets trading platform.
Which asset classes can participants trade?
You can trade any financial instrument available through the ThinkMarkets platform. Major options include indices, commodities, Forex, and cryptocurrencies. Most of our funded trading challenge participants focus on the crypto and Forex markets.
Are participants limited to only one account?
No. You can take part in the challenge using any number of funded accounts. But your accounts cannot contain a total of more than $500,000 in initial funds.
What happens if I pass the challenge?
If you pass the challenge, you’ll have the opportunity to become a funded trader with Fortunes Funding. Funded traders can access up to $500,000 in evaluation firm capital and keep 80% of their payout shares. If you qualify for Fortune Funding’s scaling plan, your payout share can rise as high as 90%.
Before you officially begin funded trading, you’ll need to submit some documents to Fortunes Funding. These requirements are necessary to verify your identity and satisfy anti-money laundering regulations. We’ll ask you to provide:
A valid government-issued photo ID (driver’s license, passport, or government ID card)
Proof of address no more than 60 days old (utility bill, phone bill, or bank statement)
Get Started With Funded Trading Today
Through the Fortunes Funding Trading Challenges, you can prove you have what it takes to become a funded trader. Select the challenge that best suits your trading style and experience today. You’ll be one step closer to earning support from a evaluation firm.
Fortunes Funding Funded Accounts (the “Funded Accounts”) are not live trading accounts; the Funded Accounts are fully simulated accounts utilizing real market quotes from liquidity providers. The Traders featured are representative only and include selected traders who consent to public disclosure of their personal information. Trader performance quoted represents past performance in a simulated environment and does not guarantee current or future performance. Further, financial instrument trading involves substantial risk of loss and is not suitable for every investor. Trading activities referenced by or undertaken utilizing Fortunes Funding may not be suitable for all investors.