What are Share Market Robots? — BOTSFIRM
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Share Market Robots Explained

What are share market robots?

Automated programs that watch stocks, indices, and ETFs, and execute trades on your behalf, based on a fixed set of rules.

A robot's rule, in practice
IFPrice breaks 20-day high
ANDVolume confirms the move
THENBuy, stop-loss at −2%

Coded once, checked continuously, executed without hesitation.

In plain terms

The same idea as a forex EA — pointed at stocks

A share market robot — also called an equities EA or algo strategy — is a piece of software that trades stocks the same way a forex EA trades currency pairs: it follows a coded set of rules for when to enter, exit, and manage risk, without you needing to watch the screen or place the order yourself.

Instead of monitoring price action all day, the robot scans the market continuously and only acts when its conditions are met — consistently, and without emotion driving the decision.

The mechanics

How they work

Every share market robot, however different the strategy, runs through the same five-part loop.

1

Strategy logic is defined

Rules are coded around technical indicators, price action, volume, or a quantitative model.

2

It connects to your broker

Through an API, a bridge, or a platform like MT5 that supports equities and stock CFDs.

3

It scans the market in real time

Checking live price feeds against its rules continuously through the trading session.

4

It executes automatically

Orders are placed the instant its conditions are met — no manual click required.

5

It manages risk on its own

Stop-loss, position sizing, and exposure limits are enforced by the same rules, every single time.

Under the hood

Types of share market robots

Different robots read the market differently — most fall into one of these families.

Trend-following

Rides a sustained move in a stock's price, using moving averages or breakout levels to stay in the trade.

Momentum & breakout

Enters the moment a stock accelerates past a key level on strong volume.

Mean-reversion

Bets that price will pull back toward its average after moving too far, too fast.

Arbitrage & pairs

Trades the price gap between two correlated stocks, or a stock and its derivative.

Portfolio rebalancing

Automatically adjusts holdings back to target weightings on a fixed schedule.

Scalping for equities

Takes many small, fast trades off short-term price moves within a single session.

Not quite the same machine

How they differ from forex EAs

FactorShare market robotsForex EAs
Trading hoursFixed exchange sessionsNearly 24/5
SizingPer-share, capital needs vary morePer-lot, more standardised
Corporate eventsDividends, splits, earnings can move the planNo equivalent events
LiquidityVaries stock by stockDeep on major pairs
Before you use one

Worth checking first

Backtest on real historical stock data, not just a demo run.
Confirm your broker's platform actually supports algorithmic execution on the shares you want.
Check local regulations and tax treatment for automated equity trading in your country.
Start on a demo or reduced size before committing full capital.

Ready to set one up?

A practical, step-by-step path from opening an account to running your first robot live.

How to Get Started

No coding required — most robots are configured, not built.

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