Forex Robots – 3 Reasons You Will Lose Money if You Use Them

Forex Robots will generally wipe out your account and do it quickly. Only a tiny minority win and they’re not the ones you see heavily advertised. Normal, sensible people fall for the myth they do make money and here are 3 reasons, why you are odds onto lose with them…

The first point to make is that the automated Forex trading systems you see all produce great track records – better in fact than the worlds top fund managers and all for $100! Now, why haven’t banks brokers etc, sacked their multi million pound dealing teams and use a robot instead? This leads to the first key point.

1. The Robots Produce Made Up Track Records in Hindsight

All you need to do is look at the small print and you will see the Robot has never been traded for real, it’s a back test on historical data knowing all the facts and closing prices. The vendor simply buys and sells to make a profit knowing the closing prices and bends his system to fit the data. You can’t bend going forward though and these Robots get a reality check from the market and get wiped out.

2. Starting Equity

Even if the systems were good, the amounts they say you can start with – like $100 are just too small. You are going to have losses on any system and $100 will soon be taken by the market.

3. Money Management is non Existent

Because the track records are bent to fit the data, money management rules are generally non existent.

The reason for this is that they have bent the rules and will leave trades open you would never do in real life. I once saw a robot which claims in several years it had never had one single loss yet, look at the track record and you could see a trade closed for a profit of under 10 pips but losses were several hundred pips before the trade turned around. You wouldn’t do that in real life!

Any Forex Trader knows that success is built on money management and these robots have rules that in most instances are laughable.

Fantasy Profits Reality Losses

If you want to win at Forex trading forget the fantasy of plugging in a $100 dollar software package, with a simulated track record and it giving you profits with no effort instead, focus on learning Forex trading the right way.

How to Win

You need to make an effort and get the right Forex Education – but your efforts will be well rewarded. You can learn to trade in a few weeks and soon be making big profits in around 30 minutes a day.

Treat the markets with respect and you will be well rewarded with a great second or even life changing income, trust a robot with a simulated track record and you will be in the majority of losers.

Forex Robot Trading Myths – 3 Myths Traders Believe And Lose

Forex robot trading is not the easy route to huge profits that most traders believe. If you want to win with an automated trading system make sure you don’t believe the 3 common myths enclosed…

Here are your 3 common myths

1. Forex Robots Offer Huge Gains and Low Risk

Does anyone seriously believe you can double your money each month with little or no risk and make money while you sleep? This is the advertising copy and it’s laughable. No robot does this and the user gets handed a lesson by the market.

2. Complex Mathematical Algorithms that Predict Price Changes in Advance

I see many robots which claim 90% accuracy and they say the complex mathematical equations they use can predict price changes in advance but they don’t. Most of the equations are actually crude, not complex and lose. These systems also tend to trade too much and have no concept of money management.

Mathematics to predict the market is a huge myth why?

Because markets don’t move to mathematics, they move to probabilities. In an odds based market a complex equation is of no real use, as simple systems always work best as they are more robust than complex ones.

3. You Have no Risk Because you Can trade it in a Demo Account

This is normally part of the advertising copy. Trade it for a month and see how it performs in a demo account and see for yourself.

Well since when was a month long enough to judge a system and its performance? Two years should be the minimum any system trader should consider and by the time you have done that, the guarantee no longer applies.

The Reality of Forex Robot Trading

Never matches the hype and deep down most traders know they wont get rich for a few hundred dollars but they still buy them. In recent years we have had the rise of online trading and account minimums have fallen to just a few hundred dollars.

People want to get in on the action and the Forex robot myths sell a lot of systems but if you believe them you will lose.

Before you trust your financial destiny to mass produced piece of software, think about the above and try a different route; Get yourself a decent Forex education and learn skills, apply them with discipline and you will be on the right route to Forex trading success.

 

Forex Robots – Essential Facts ALL Buyers Need to Know

Forex robots are the choice of most novice traders and here, we will look at some facts that you need to know before buying one…

Forex robots are a great way to lose money, so let’s look at the claims the vendors make and the facts about robot trading which means you should avoid them.

“You can Double your money Each month”

If you could double your money each year, you would be up there with the best traders in the world, no robot makes gains like the above except in paper back tests.

“You Can trade with 90% accuracy”

The robots claim you can predict the future with their algorithms but of course no one knows the future and prices cannot be predicted. Markets don’t move to mathematical certainties, they move to probabilities so you can forget trying to predict them.

You can trade with less than 1% drawdown

If you are trading Forex and aiming for triple digit gains, this is impossible. It’s an investment fact with reward goes risk and double figure drawdown is inevitable.

“You Don’t need to know what you’re doing to trade with a Robot”

Now this statement is true! You don’t you follow the signals but what’s the point of following something that loses? Go to the casino if you don’t mind losing, at least you will have more fun.

“The Cost is just a few hundred dollars”

You get the hype about how cheap they are and they are so cheap because they don’t make any money. If they really did make the gains they claim, they would be worth hundreds of millions of dollars.

So it’s no surprise to learn that the easy money the vendors of these systems claim you can make is not the reality for the users of these systems. All the heavily hyped robots make no money and never will.

If you want to make money at Forex trading, get a decent education and learn skills and you will be well rewarded for your efforts and enjoy currency trading success.