How much can you really earn with a trading robot?

How much can you really earn with a trading robot?

More and more traders are starting to use trading robots to automate their trading. But the question remains: how much can you really earn with a trading robot? This question concerns both beginners and experienced traders. Let’s break down the factors that affect profitability and potential risks when using trading bots.

How does a trading robot work?

A trading robot is a program that automatically opens and closes trades on the market, following a predefined strategy. Bots analyze the market, look for buy or sell signals, and act without human involvement. Trading robots can work with various assets: currencies, stocks, indices, metals, cryptocurrencies, etc.

Bots work 24/7, allowing traders to earn profits even when they can’t monitor the market.

Factors that affect a trading robot’s profitability

1. Strategy selection
   Strategy is the foundation of any trading robot. There are several types of strategies:

• Trend-following strategies — work when the market moves in one direction.
• Counter-trend strategies — use market reversals.
• Scalping — frequent buying and selling to make small profits from each trade.
• Martingale — increases the bet size after a losing trade (risky strategy).

Important: When choosing a strategy for the robot, consider how it aligns with your trading style and risk management.

2. Quality of the trading robot
   The quality of a trading robot depends on:

• History and statistical performance
• User reviews
• Transparency of the strategy
• Risks the robot operates with (e.g., maximum drawdown)

A robot with a solid performance history over an extended period is more likely to be successful in the future.

3. Risk management
   Risk management plays a key role in profitability. A good trading robot always includes:

• Stop-loss to limit losses
• Take-profit to lock in profits
• Maximum drawdown limits

Using risk management helps minimize losses and protect capital.

4. Market volatility
   Earnings with a trading robot also depend on market volatility. The higher the volatility, the more opportunities for the robot. However, during periods of extreme market fluctuations, the robot might experience drawdowns and fail to close trades in time.

For robots operating in cryptocurrency or metals markets, high volatility can both be an opportunity for profit and a risk.

How much can you really earn with a trading robot?

Now, let’s answer the big question: how much can you really earn with a trading robot?

Earnings depend on several factors:

• Type of robot and strategy
• Deposit size
• Settings and risks
• The trader who manages the robot

Example 1: Conservative approach
If you use a conservative strategy with a small lot size and well-defined risk management, you can expect a return of 5-15% per month. However, in this case, the profit will be stable, but not overly high.

Example 2: Aggressive strategy
For more aggressive strategies, where the risks are higher (e.g., using Martingale or scalping), the profit could be 30-50% per month. But, remember, such strategies also increase the chance of losses.

Example 3: Markets with high volatility (e.g., cryptocurrencies)
In markets with high volatility, such as cryptocurrencies, profitability could reach 100% or more, but the risks are much higher.

Important to remember: high profits always come with high risks. Robots promising «guaranteed profits» or overly high returns are often fraudulent schemes.

Real risks of trading with robots

The market is always unpredictable: no robot can account for all factors. During major news events or market catastrophes, the robot might face losses.

• Drawdowns: sometimes a robot may experience long periods of losses, even if the overall strategy is profitable.
• Algorithm malfunction: robots rely on the correctness of the algorithms programmed into them, and if there are technical errors or failures, this could lead to losses.

How to increase your chances of profitability with a trading robot?

• Test the robot on a demo account: Before running the robot with real money, test it on a demo account to understand how it works under different market conditions.
• Use only verified robots: Look for reviews and monitor the bot’s performance results.
• Control risks: Set reasonable stop-loss and take-profit parameters.
• Don’t forget about monitoring: Although robots work automatically, it’s always useful to periodically check the results.

Conclusion

Earnings from a trading robot depend on numerous factors, including strategy, robot quality, risk management, and market conditions. Some traders can earn 5-10% per month, while others may earn more, provided they follow reasonable risk guidelines. However, when using trading robots, it’s always important to understand the risks and not rely solely on the automatic process.

You can also read our article on «Which markets are suitable for automated trading,» which we’ve covered earlier.

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