Does forex robots automated trading works in forex?

In its early days there was so much positive hypes about the forex robots and it attracts many people from small to professional traders especially the newbies to make extensive research in regards to currency trading automation. Some programmers even quit their jobs and focus on developing the forex robots as it promise tonnes of money - as the result of that you can find there are a lot of robots signal on the internet today and of course some people still promoting them on Youtube.

Most and probably all of the auto trading robots are based on the Metatrader charting platforms especially MT4 and now moving on to the newer version MT5. You can even find some them for free in forex trading forums shared by certain fellow traders. The metatrader itself even hold robot lives trading competitions where robots earn the most money wins and you can find this in the metatrader forums. 

The advantage of forex robot is the automated trading capability where it open and close positions automatically based on the settings set by traders. Once all the parameters are set according to the trader's preference the robots then execute trades automatically in the absents of the traders watch. It can execute hundreds of open and close positions depending on the settings. 

 
Now the question is - how reliable the forex robots compare to the conventional trading perform by real human beings? From the records of robot trading competition organized by metatrader itself there is no doubt few of the best robot works and all who have won are the living proof of the legacy. But at some points the robot will eventually failing. WHY? 

Yes first let's talk about the fundamental idea how the robots are developed. The main core idea is the technical indicators - which is use as the basis to determine when to open or close positions. Most developers will use EA or MA (Exponential average or Moving Average), MACD, Stochastic, and historical support and resistance level. Now if the market movement obeys the mathematical formula of the indicators the robot usually wins. 

However as the market landscape changes - the robot starting to get confuse and execute trades blindly based on the technical indicators signal. Take for example during Non-Farm Payroll economic data release the robot will fail 1000% all the time because it doesn't follow technical rules in order for the market to move. Second example is during a rally of correction reversal the market maker will play the robots based on the technical indicator rules but then it will be taken by surprise a huge reversal that not only wiped off all the winning trades but also inflict excessive losses that force the robot to close positions. The third problem is scalping in the small time frame - this is where the market maker loves to poach every single positions especially when using robots. It will swing the market in any direction against the robot to forcing it to close all the time. As a result the robot has no chance to survive in scalping trades.

No matter how smart or advanced the robot is - the market maker is the ultimate money making machine out there. They are the one the master who determine where to go and it is not the majority crowds as most people think.

In summary the robot will never wins and in fact it could wiped your account within days if you are allowing it to run automatically.