Best automated trading systems for beginners
Automated trading systems can be divided into two subgroups: trading bots — often referred to as expert advisors (EAs) in the Forex space — and copy trading platforms. We compare the seven best automated trading systems you can start using right now. Keep in mind, even though these systems can be profitable, there are risks to consider.
Best automated trading platform for beginners to consider in 2023:
RoboForex strategy builder - best EA builder for beginners
ByBit copy trading — best for crypto automation
eToro - best copy trading software
cTrader copy trading from IC Markets
1000pip Climber - best trading bot
CopyFX from RoboForex
What is an automated trading platform?
An automated trading platform is a software tool that allows you to enter and exit trades without manual input. Trades are executed either via a trading bot or by copying professional traders.
All you have to do is provide an amount you wish to trade, your potential stop loss amount and the leverage you wish to use. The automated trading system takes that input and combines it with its pre-defined parameters.
Expert Advisors vs Manual Trading - Which is Better? Read more about itWhat is an automated trading platform?
RoboForex Strategy Builders (EA Builder) - Best for beginners
RoboForex is a well known Forex broker that offers a quite easy to use EAs builder for building expert advisors that run on the brokers proprietary platform, R StocksTrader.
RoboForex claims that its EAs builder is the easiest to use in the market because it uses templates instead of having to write your own code. Overall, this is a great EA builder for beginners looking to easily create a simple EA that will automate some of their trading jobs.
ByBit copy trading — best for crypto automation
ByBit is a beginner-friendly copy trading service for cryptocurrencies. It offers a high number of traders to choose from and you get to apply detailed settings to protect your funds. This includes adding your own stop loss limit, selecting which crypto pairs to copy, your leverage size and more.
The best features of the ByBit automated trading platform include:
Follow up to 10 traders at one time.
Choose up to 15 tradable pairs like BTC/USDT, ETH/USDT and XRP/USDT.
Multiple deposit options in fiat or crypto.
On the downside:
You share 10% of your net profit with the trader you copy.
Not available in the U.S.
A limited number of followers per trader.
To use the ByBit copy trading service you need to sign up for an account. Use a valid email address and a password, and then deposit funds via fiat or crypto to start copying. Next, choose the trader you wish to copy.
Search traders by:
Return on investment.
Number of followers.
Country.
Master Trader Badge — ByBit’s ranking system.
Make sure to check the trader’s trading history before you select. Ideally, a trader with a longer track record is where you would start. ByBit lets you see a trader’s history for up to 90 days in the search tab and up to 180 days in the trader’s profile.
Next, inspect the following:
Leverage. Look for a trader that uses less than 5x leverage. A higher number than that often comes with a higher risk of losses.
Trading pairs. You want someone that trades highly liquid pairs, such as the BTC/USDT or ETH/USDT as they are less likely to be manipulated by low liquidity.
Maximum drawdown. This shows the highest loss incurred by a trader. Ideally, you would choose someone with less than a 10% maximum drawdown.
Average profit and loss. The higher the number, the more profitable the trader. If the trader also has a long trading history, it could be worth considering.
Scalping. Avoid scalpers as it may be hard to get the exact results as the trader you copy. You can identify scalping trades in the trader’s history — a trade that lasts a few minutes or less is a scalping trade.
Once you choose a trader, select the amount of money in USDT you wish to use for copying. Provide your stop-loss number for added protection. This number means your order will be closed to prevent further losses regardless of where the trader’s original stop loss is. Other settings include maximum daily positions you can have opened, take profit and slippage ratio, as well as the cryptocurrency pairs you wish to copy.
Note, even a trader with a perfect track record could fail. Make sure to do your own due diligence when choosing traders and keep your leverage in check.
Best Crypto Copy Trading SoftwareeToro - Best copy trading software
If you want to try copy trading, you should consider the eToro broker because it is considered one of the best brokers for copy trading. This broker has one of the most advanced, powerful and extensive social trading networks for generating passive income. It stands out for its low entry threshold, favorable trading conditions, excellent functionality, and simplicity.
The best advantages of this copy trading software are:
Minimum investment – $200.
There are lots of experienced traders who allow other traders to copy their trades.
Largest copy trading network in the world.
No additional commission. The broker only earns from the spread.
Regulation in the UK, EU and Australia
To use this copy trading software, click on “Copy People” after you access the eToro online platform. Then, you can select the most successful traders by strategy, the number of copiers, return rate, and risk score.
After you do that, you can analyze traders by different trader statistics, such as:
An average risk score of the specified period.
Maximum drawdown per day, month and year.
Assets under management.
Dynamics of the number of copiers.
cTrader copy trading from IC Markets
Aside from the full brokerage package that IC Markets offers, you can use automated trading via the cTrader platform. The cTrader comes with fast execution and low spreads — with an average of 0.1 pips for EUR/USD — which makes it the right choice for copying trades.
The IC Markets cTrader Copy Trading comes with:
Large selection of professional traders and strategies.
Minimum investment of $100 for some strategies.
Separate trading accounts between copy trading and manual trading.
There are some downsides, though:
Fees vary between trading strategies; you could pay up to 30% performance fee.
Minimum investment requirements vary between strategies, from $100 to up to $15,000.
Open an account with IC Markets to use the cTrader Copy Trading platform. Select the cTrader platform under the “downloads” section. Select “Copy” and choose a strategy you wish to copy.
Find strategies by going through several parameters, the most important of which are:
Live or demo account.
Return on investment.
How long the strategy has been active.
Performance fee.
Before you start copying, check the strategy’s stats first. Look for how long it has been active and how much the trader who runs the strategy uses their own funds. If a trader uses only a few hundred dollars to trade their own strategy, it could mean they don’t believe in it.
Also consider:
Maximum drawdown. Ideally, this should be less than 10%, meaning the strategy is relatively safe.
The number of pips they win or lose. If a trader wins or loses just a few pips per trade, it means they are scalping and the results on your portfolio will likely vary.
How long a trade is held. Avoid following strategies that close positions within seconds or a minute after opening.
When you find the right strategy, select “Start Copying”. Choose your account and the amount you wish to dedicate to this automated trading strategy. On this tab, you will see the fees and conditions once again. If all looks good, start copying.
1000pip Climber Trading bot
1000pip Climber EA is the leading Forex robot and the highest rated EA on TrustPilot with a rating of almost 10/10. Users of this EA have been particularly impressed with the very high yield in both trending and range bound markets.
The impressive performance has also been independently verified by MYFXBook so you can be particularly confident in the quality of the EA.
This EA is well suited to beginners because it is easy to use, quick to install, and comes with full support from the developer of the system. In addition, the 1000pip Climber EA has no minimum deposit and you can use any leverage value.
Download robotCopyFX from RoboForex
Consider CopyFX if you’re looking for a solid broker with a wide range of traders and strategies you can copy. There are two main ways to copy trades: via the cTrader platform or the MetaTrader 4. The cTrader platform is easier to set up and shares the same strategies with other brokers offering the cTrader platform, such as IC Markets. The MT4 platform copy trade, however, offers different traders and strategies.
The features you get with this RoboForex automated trading system include:
Minimum $100 investment.
Variety of traders and strategies to choose from.
MT4 and cTrader copy trading available.
To be fair, some investors may dislike:
Complexity to set up the MT4 copy trading.
Some traders charge up to 50% commission from the profit.
Open a RoboForex account to start copying. Use a valid email address and a password. RoboForex accepts a variety of deposit options, including credit cards, GooglePay and Apple Pay, as well as cryptocurrencies and stablecoins.
If you want to use the cTrader platform to copy trades, download the cTrader platform — or open its web version — at the RoboForex download center. Open the cTrader and select “Copy”. Choose a strategy you like.
With the MT4 copy trading, you need to download the MT4 on your computer. Next, find the right trader you wish to copy on the RoboForex CopyFX website. Compare traders by looking at their:
Maximum drawdown. This is probably the most important factor as it will determine your survival in the long run. Avoid traders with a 15% or higher drawdown.
Profitability. You may want to consider traders that aren’t too profitable as this is rarely sustainable. It also means they are using high leverage.
Activity. Traders that have been successful for months are often a good choice to consider.
Average trade time. See how long they hold their trades open. Anything less than a few minutes should be a red flag.
After you find a trader, select “Invest”. Select your trading account — should be an MT4 — and start copying the trader.
Before you dedicate a large sum of money, make sure to test a trader with a smaller deposit. Read also information about Investfly Review.
Best Forex Automated Trading SoftwareAutomated trading pros and cons for beginners
Automated trading systems can be a solid addition to your portfolio as a way to earn passive income. But it doesn’t come without risks.
👍 Pros
• Removes human emotion from trading.
•Executes trades faster.
•Setting up is often straightforward.
•A variety of automated trading systems to choose from.
•Trades 24/7 even when you sleep.
👎 Cons
•Not always profitable.
•Not using your own stop loss may incur large losses.
•Fees are often high.
Types of automated trading systems
The main types of automated trading software for Forex trading that exist today are Forex expert advisors (EAs), also called trading bots, and copy trading also referred to as social trading. Although they both allow you to perform automated trades, they do this in different ways. Here is what you need to know about these automated trading software:
Forex Expert Advisors
An expert advisor (EA) is a piece of software that has been specially designed to perform trading functions. This software alerts Forex traders to trading opportunities and advises them on which trades to execute. In addition, an expert advisor can manage trades in place of a Forex trader. So, you can use an EA for discovering profitable trading opportunities and then place the trades manually, and you can also let it automatically execute the trades.
Read more about Best Free Forex Trading AdvisorsForex EAs Builders
Simply, an EA builder is a software used for programming EAs. The MetaTrader platform is the best trading platform for EAs. Those EAs are usually built in the MetaTrader’s Meta Quotes Language (MQL), which is a Forex EAs builder. The EAs are one of the best features of the MetaTrader platform and are made up of a mathematical model that employs trade signals to identify the optimal entry points into trades.
How to Write a Trading RobotCopy Trading
Copy trading, also called social trading, is another effective automated trading software that can be used to make Forex traders’ lives easier. A copy trading service lets traders connect their trading account to a trading network. When the trader that is responsible for that network makes a trade, that trade is automatically copied by the other trading accounts connected to it through the copy trading software.
What is Forex Copy Trade and how is it use? Learn more about itHow to choose the best automated trading option
Whether it’s a Forex EA, a copy trading platform or any other automated trading option, you have to compare several aspects to make the right choice.
Drawdown. Avoid strategies with a large drawdown of 15% or more as this means it’s taking more risks than you may be willing to accept. Of course, if you want a high-risk/high-reward scenario, then a large drawdown shouldn’t worry you.
Profitability. It may sound counter-intuitive but avoid using a strategy that is overly profitable. The profitability may be a short-term success or the strategy may have used high leverage to achieve that profitability. Use this metric along with drawdown and activity to determine if a strategy is worth executing.
Activity. How long the strategy has been active is one of the most important metrics you want to check. If a strategy has been trading for days or weeks, you may want to wait and see how it performs for a few months.
Trade time. Strategies that hold trades for a few minutes or less are often using scalping techniques. Typically, it’s hard to successfully copy a scalper — or use a scalping EA — because trading conditions like spread and slippage change by the second.
How to use trading automation systems effectively
The success of using an automated trading system largely comes down to four actions you can take.
Choose the right platform. Not every automated trading platform is created equal. Test a few platforms with a smaller amount to see which one meets your goals.
Due diligence. Compare profitability, drawdown and the type of trades that are executed. Preferably, test each automated trading system you’re considering.
Monitor your positions. Check the performance, preferably once or twice a week, and adjust your positions or stop loss accordingly.
Set realistic goals. Don’t expect to become a millionaire with a $100 deposit. If you can beat the yearly inflation numbers and earn something on top — you’re already ahead of the game.
Can I make money by automating my trading?
Yes, you can make money with automated trading platforms. However, there are no guarantees when it comes to trading whether it be manual or automated. Increase your chances of success by choosing a reliable platform, finding the right EA or a trader to copy, setting realistic goals and using proper risk management.
Are Forex robots profitable?FAQ
What are the best auto trading platforms?
This largely depends on your preference and needs. Popular copy trading platforms include eToro, IC Markets cTrader Copy Trading and CopyFX by RoboForex.
Is automated trading profitable?
It can be profitable but there are no guarantees. Your success mostly depends on the automated trading system you use, your risk management and market conditions.
Is automated trading a good idea for beginners?
Automated trading can be helpful for beginners because it requires minimal intervention. However, if you leave it at that, you may not grow as a trader.
What is the minimum investment requirement?
Minimum investment depends on the type of automated trading system you use. Typically, you can start with a $100 deposit with most strategies. Some strategies may require several thousands of dollars to start trading.
Team that worked on the article
Kliment Dukovski is a finance writer and contributor for the Traders Union website. He specializes in investments, cryptocurrency, foreign exchange and technical analysis. His commentary has been featured in digital publications such as Fox Business, MSN Money and MediaFeed.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.