Every robot runs on a specific logic, and every logic has a point where it breaks. Whoever sells you a robot does not tell you about that point — and it is exactly what eats the account. Here we go through the five basic types, what each one does, and where it falls.
1. Trend robot
The logic: it determines the overall market direction (usually with moving averages or a trend indicator) and trades with it. Rising? It buys. Falling? It sells.
Where it breaks: in a ranging market. When price oscillates up and down with no clear direction, the robot goes long and gets reversed, goes short and gets reversed — and small consecutive losses pile up. Technicians call it "whipsaw".
Practical note: this type needs patience. It can sit losing for weeks in a range and then make it all back in one strong move — or not make it back.
2. Grid robot
The logic: it places trades at fixed distances above and below price. Every time price drops a set distance it opens another buy, which improves the average entry, and when price bounces it closes all of them in profit.
Where it breaks — and this matters: when price moves in one direction and does not bounce. Every step down opens a new losing trade, and the floating loss grows at an accelerating rate. The account is wiped not because the robot is wrong, but because the market went further than the balance could bear.
Why it looks successful: in ranging markets it wins consistently and produces a beautiful equity curve for months. Then one strong move comes and takes everything.
3. Martingale robot
The logic: after every losing trade it doubles the size. The idea is that the first winning trade will cover all the losses and come out ahead.
Where it breaks: mathematically. A run of 8 consecutive losses means the ninth trade is 256 times the original size. No small account can carry that. And a run of 8 losses is not rare at all in the market.
This is the most dangerous type. It produces excellent results for a long time and then wipes the account in a single session. If a robot doubles size after a loss — know exactly what you are doing, and run it with a separate amount you can afford to lose entirely.
How to spot it: look in the settings for words like Multiplier or LotMultiplier. If the value is above 1.0 — it is a martingale.
4. Scalping robot
The logic: many short trades, each taking a few pips. Usually runs on M1 or M5.
Where it breaks: on costs. When a trade targets 5 pips, the spread is 3 pips and the commission is a pip — half the profit is gone before it starts. And during news the spread widens suddenly and swallows the whole target.
Its basic requirement: a broker with a tight spread and fast execution, and a VPS close to the broker's server. Without those, scalping loses even when its logic is right.
5. Breakout robot
The logic: it watches an important level (a high, a low, a range) and enters when price breaks it — assuming it will continue in the same direction.
Where it breaks: the false breakout. Price breaks the level, the robot enters, and price immediately returns inside the range. This happens a lot, especially at low-liquidity times.
Note: this type depends heavily on when it runs. A breakout during the London session is not the same as a breakout in a quiet hour at night.
Quick table
| Type | Likes | Dies from | Balance sensitivity |
|---|---|---|---|
| Trend | a trending market | a ranging market | medium |
| Grid | a ranging market | a strong one-way move | very high |
| Martingale | quick bounces | a losing streak | fatal |
| Scalping | tight spread, fast execution | costs and news | medium |
| Breakout | active sessions | false breakouts | medium |
What to do in practice
- Know your robot's type before you run it. Open its settings and look for Grid / Multiplier / Step. The description on every robot's page in our library states its type.
- Test on a demo account for at least two weeks — and make sure the period includes a strong news day (US interest rates or the jobs report). That is where you see the truth.
- Watch the largest floating loss it reached on the demo. If it hit 40% of the balance on demo, it will hit more on a real account.
- Start with the smallest lot possible on a real account, for a full month at least.
There is no "best" type. There is a type that suits a certain market, a certain account size and a certain risk tolerance. And every one of them can lose — including the one that looks perfect for the first two months.