Automated Forex Robots – Why They Don’t Live Up to the Hype and Lose Money

Automated Forex Robots promise a regular income for $100 or so but of course they don’t deliver the gains they claim in real life for users and the reason is obvious and enclosed…

The Forex robots you see advertised online with great track records all have a problem – the track records are simulated back tests or to put it another way made up.

The fact the vendor can choose where to buy and sell, knowing all the closing prices, makes it easy to make gains and of course, the gains you see are obviously not going to repeat and the reason is obvious – if they did, the vendor would keep quite and make a fortune, or sell the system to a major investment house for millions of dollars.

The people who promote these automated Forex robots, have the good sense not to trade them, as they know that a naïve or greedy trader will give them a guaranteed profit by buying the software so:

Do any of automated trading systems make money?

Yes they do and you can search some out, that have real performance and you can even get free ones that make money (we are big fans of The 4 Week Rule which has made savvy traders countless millions over the last 25 years ) but you have to keep the following points in mind when trading even the best robots.

- The best robots can make 50- 100% annual compound gains and are long term

- Drawdown periods normally last for a few weeks to a few months

- The size of drawdown varies by is typically 25 – 50% in size

They are long term and you must understand how and why they work, so you can follow them through long losing periods with discipline.

The big gains and no drawdown only exists in simulations, in the real world, even the best systems drawdown for long periods and you need to have the right Forex education on how and why it works, so you have confidence and discipline to follow the signals exactly.

The automated Forex Robot industry has a bad name and that’s due to the myth that simulated profits, you see on the made up track records, will repeat in real life and of course they don’t.

The good news is there are some automated Forex trading systems with real track records which can and do produce big long term gains.

Pick the right one, appreciate you have to judge long term and ride out short term periods of losses and you will enjoy currency trading success.

Forex Robots – A Great Way to Lose Money

Forex Robots are chosen by a huge amount of new Forex traders, they believe they can make money with them, make huge returns and make no effort but this is simply not true and These robots son destroy the users accounts. Let’s take a look at why you won’t make any long term gains with a Forex robot.

The Forex robots never present an independent track record of gains that is verified over the long term.

All you get are back tests or figures from the vendors themselves. So they have no proof of making money but tell you that you can make more money than the worlds best traders (who earn millions) by following their robots which cost just a few hundred dollars.

Anyone who believes the Forex robots make money will be disappointed.

A track record based on back testing where the vendor knows the closing prices and simply buys and sells at highs and lows, is far easier than trading when you don’t have the luxury of knowing the closing price in advance! Of course if we all knew the closing price in advance, we could all be trading millionaires but that of course is not the reality of Forex trading.

Traders are always looking for easy ways to make money but in Forex trading to make money, you have to work and learn skills. Forget the ridiculous claims the Forex Robots make and concentrate on getting yourself a decent Forex education and if you do, you can then trade with confidence and win.

If you do make an effort, no other venture can make you as much money for your effort as Forex trading.

Automated Forex Robots – They Lose Money Despite Claiming Huge Profits

Automated Forex robots promise a huge regular income and of course they don’t deliver – financial freedom for $100 or so and no effort is fantasy not reality.

If I walked up to you in a bar and said give me $100 and I will give you an income for life with no effort you would laugh at me and think I was joking but in Forex trading, greed takes over and traders happily buy a Forex robot which promises them untold riches for the price of a few drinks.

We will look at how to make money in Forex trading in a moment but for now let’s look at the fantasy and reality of Forex robots.

Double Your Income Every Month

Pure fantasy, the world’s best managers on millions a year can’t do this and neither can any robot.

Trade with less than 1% Drawdown

Another fantasy! If you made a 100% per annum the typical drawdown would be 20 – 40%. The fact is the higher the gain the higher the drawdown that’s forex trading and any trader knows this.

The systems are based on Complex Mathematics

The ones I have seen aren’t but even if they were, Forex markets don’t move to mathematical theories, so complex algorithms won’t help – Forex trading is an odds game.

These systems are always developed by some geek ex-trader, or whiz kid but most certainly have no idea about the reality of Forex trading, otherwise they would realize that the above points we looked at, are incorrect and not based on sound logic.

I have seen the track records you may say, sure you have but most are back tested and I have never seen an audit long term of the trades by a well known organisation, of the ones that present real ones.

Fact is if they systems really made the gains the vendors claim, they wouldn’t need to sell them, they could simply trade them and become billionaires!

How to Win at Forex Trading

If you want to make money at Forex trading, you need to get yourself a solid Forex education and learn skills.

Anyone can do it and although you have to put in effort, that’s life but the rewards for your effort are huge, so learn trading the right way and win. Leave the Forex robots, to the naïve or greedy traders and get on with making some good solid long term gains.