The ultimate dream: You wake up, check your phone, and see that your trading bot made $100 while you were sleeping. No stress, no charts, just profit.
The internet is full of sellers promising this dream for $99. 99% of them are scams.
However, Algorithmic Trading (using Robots/EAs) is real. Hedge funds use it. Banks use it. But they don't use it to turn $100 into $1,000,000. They use it for Consistency.
In this guide, we will strip away the marketing lies and show you the mathematical reality of building a $100/day automated system.
1. The Math: What Does "$100/Day" Require?
Let's look at the cold, hard numbers.
$100 per trading day = approx. $2,200 per month.
If a safe, professional Expert Advisor (EA) makes an average of 5% to 10% per month (which is realistic), how much capital do you need?
The Capital Requirement Formula:
Target: $2,200 / Month
ROI: 5% / Month
Capital Needed = $44,000
The Reality Check: If you think you can make $100/day from a $500 account using a robot, you are not investing. You are playing Russian Roulette. You need to make 400% profit a month. That always ends in a blown account.
2. The Danger: Martingale & Grid Bots
Why do some bots show a straight line of profit for months and then drop to zero in one day?
Because they use Martingale.
How it works:
- Bot buys. Price drops.
- Bot buys double size. Price drops more.
- Bot buys quadruple size.
- It hopes for a tiny bounce to close everything in profit.
The Result: It works 99% of the time. But that 1% time when the market trends strongly without pulling back? Account Wipeout.
3. Infrastructure: The VPS (Virtual Private Server)
You cannot run a bot on your home laptop.
- Your internet might cut out.
- Your laptop might sleep or update Windows.
- Latency (Speed) matters.
To trade autopilot, you need a Forex VPS. This is a computer in a data center (usually London or NY) that runs 24/7. You install your MT4/5 there, and it never sleeps.
4. How to Spot a "Real" Profitable Bot
Before you buy any EA, ask for the Myfxbook link.
Check these 3 metrics:
- Drawdown: If it's above 30%, it's too risky. A safe bot has < 15% drawdown.
- Live vs Demo: Only trust "Real" accounts with "Verified Privileges". Demo results are easily faked.
- Age: Has it survived for at least 1 year? Most scams die in 3 months.
5. The Strategy: Portfolio of Bots
Professional Algo Traders do not rely on one bot. They create a team.
- Bot A (Scalper): Trades Asian Session consolidation.
- Bot B (Trend): Trades London Breakouts.
- Bot C (Gold): Trades XAUUSD volatility.
When Bot A loses, Bot B might win. This smooths out your equity curve.
6. Forward Testing (The Incubator)
Never put a new bot on your main capital immediately.
The Rule of 3 Months:
- Run the bot on a Demo Account for 1 month.
- If profitable, run it on a Small Live Account (e.g., $100 cent account) for 1 month.
- If still profitable and stable, Scale Up slowly.
Final Thoughts
Can you make $100/day on autopilot? Yes.
Can you do it with a $500 deposit? No.
Algorithmic trading is not a get-rich-quick scheme. It is an investment tool.
Focus on gathering capital, learn to audit strategies, and treat your bots like employees that need supervision.
Don't have $40,000 capital? Try Prop Firms: Get Funded up to $200k