Forex Trading Robot: They used to say that calling tech support was a sign of weakness for the so-called savvy technology geeks. Building on that, if you want to be a truly professional trader, then you need to learn how to set up a forex trading robot on your own without having to rely on too many outside sources.
In fact, this process is quite straightforward and easy to learn. Once you get the hang of it, you will be able to install and implement any forex trading bot or exert advisor. While they do have clear differences in their functions and installation process, they also share many of the same general stages.
So in this article we are going to take a closer look at how you can set up a trading bot step by step with an example provided by the expert advisor XauBot Pro.
How to Acquire a Forex Trading Robot?
Before we begin discussing the actual process of installation, it would be prudent to discuss quickly how you can actually acquire a bot.
There are many different kinds of forex trading robots out there developed based on different trading styles and strategies, each suitable for a particular purpose and market condition.
So when you want to acquire your forex trading robot, we highly recommend that you take into account two very important factors:
- Always make sure that the trading bot you are looking for is suitable to your conditions, which include your preferred trading method largely based upon your initial capital. It also really depends on the amount of risk you are willing to take and your profit targets. So consider all these aspects before making a decision, and once you have done so, make sure the robot meets your requirements.
- Once you have found the forex trading robot that meets your conditions, now you need to make sure that the source of the bot is reliable. Check out their developers and also other websites that might be tracking the bot such as Myfxbook. Also don’t forget to check out user comments and testimonials about the bot.
Alright, with the right bot acquired, it is time to install it.
You should read: Creating Profitable Forex bot Trading Strategies in 2024
How Can You Install Forex Trading Robot?
If you are new to algorithmic or automated trading in the foreign exchange market, you might be asking yourself exactly what does installing a trading bot entail? Is it like a software installation? Well, not quite.
You see, forex trading robots are installed or more technically speaking implemented with a forex trading platform. You apply the bot on the trading platform you are using. So you do not actually install the bot separately on your system.
So let us suppose you are using the ever popular trading platform MetaTrader 4, which is the number one choice for forex traders. With this trading platform you can install expert advisors, which are technically bots and use them with MT4.
The way it works is that you need to first have installed MT4 on your own pc or on a virtual private server, and then you enter your MT4 account and install the bot inside the trading platform.
This is who the trading bot is directly applied to your trading terminal.
You should read: Using Multiple Robots for Diversified Forex Trading Strategy in 2024
The Role of a Virtual Private Server in Bot Installation
The use of a virtual private server or VPS is indirectly related to the installation process of a forex trading bot and more directly related to the trading platform on which the bot is installed.
Generally speaking, it is always recommended to use a virtual private server for your trading platform and, by extension, your trading bots. There are many reasons why it is profitable in the end to actually pay for a good VPS provider in your forex trading journey.
- Functional reasons: the forex market is active 24 hours a day 5 days a week. So when you want to run a forex trading robot you need to have a pc that is on all the time without fail and without ever crashing even once because that messes up the trading process. This is virtually impossible. So instead you can use a private server somewhere else and install your trading platform and then bots on that server, which is guaranteed to be always running with constant access to the internet.
- Safety reasons: there is also an important safety aspect why you should use a virtual private server. You see, trading information and data are quite sensitive. And your personal computer is prone to all kinds of mishaps and hacking. It could get lost or stolen. Or it could get easily hacked. But with a private server, a good one, you are rest assured that a professional and expert team is behind it to protect it against all of these threats.
So, supposing you have acquired a VPS and have installed MetaTrader 4 on it, we can move on to the next step. Though before we go it is worth mentioning that if you are using XauBot Pro for scalping purposes, you might not need a VPS, as you can run it on your own pc with limited on times, since it only needs to be up and running a limited number of hours on a daily basis.
You should read: Analyzing Market Trends with Forex bots
Example: Installing XauBot Pro, Forex Trading Robot
Log in to your MetaTrader 4 account. At the same time you need to have downloaded the installation files from your chosen forex trading robot platform, in this case XauBot Pro.
For instance, in the case of the XauBot Pro, once you download and unzip the file, you will see a number of files in the compressed folder. The files all have an ex4 file extension, in addition to other files that might be included such as the installation tutorial.
Now that you have all the files ready, head over to MetaTrader 4. On the main page of your MT4, you need to click on the File option from the menu on the upper right hand corner of the page. Once you click File you can see a dropdown menu, and from there you need to choose Open Data Folder.
Then go through the following folder path, choose MQL4, and then Expert. Then copy and paste XAUBOT_AI_PRO_V1.ex4 inside the Expert Folder.
From the same directory of MQL4, you can see another folder titled Indicators. Except for the file mentioned in the last step, you need to copy and paste all the remaining files from the XauBot Pro installation folder here.
And that is it. This is all the installation you have to do for XauBot Pro. The rest is the initial setup of the bot from inside the MT4 platform.
You should read: News Trading with Forex Robots Tips and Tricks
The process of installing and setting up a forex trading robot can be quite straightforward, depending on the bot itself. But they do share fundamental steps with each other. It involves installing a trading platform such as MetaTrader on a virtual private server or VPS and then applying the bot or expert advisor on the trading platform.