read my thread here, it should explain how the VPS works:
http://osbot.org/forum/topic/71682-%E2%98%85-buy-your-own-247-online-computer-to-run-bots-rsvps%E2%84%A2/
basically it's a 24/7 online computer that you put the bots on, then you can turn your pc/internet off and they will still run.
a proxy is just a tool to hide your/your bots ip, nothing else.
unless you have a really good pc, you'd probably need to invest into a VPS if you want to run 4-5 bots to make a solid income.
if you can run the bots at home, probably grab some proxies and run them from home, 1 proxy per bot.