Forex Robots – the Fatal Flaw Most Have Which Destroys Equity Quickly

Forex robots are big business online but it’s not the trader who makes money, it’s the vendor. It’s a wonder that traders actually believe they will make money with them, as most have a fatal flaw which is enclosed in this article.

It’s a fact that most forex robots claim to make money BUT the track record is almost always on paper.

You will see the disclaimer “in hindsight” and “simulation” all over them.

Now, let’s assume I have tomorrows price today, how rich would I be?

VERY but of course you don’t know the price in advance and that makes trading a little more difficult.

Of course the copy is tempting – but don’t let the clever wording catch you out, look at the track record and see if its real and ask for supporting verification if you want. Forget all the reviews you read online, of people telling you how great the forex robot is. Why?

Because they are normally affiliates and make a commission on the sale, so hardly unbiased.

Let me ask you a question.

I will give you a regular income for life if you give me $100.00 and you have to make no effort. I will do it for you – will you pay me?

Of course you won’t, as you know it’s not true – but that’s exactly what traders do, when they buy forex robots and they learn a lesson, when their equity is destroyed.

As in all areas of life – if you want success you need to work at the basics and you need to take responsibility for your destiny and in forex trading you need to do this too.

There are some good automated forex trading systems around but they cost a lot more than $100 but the ones you see heavily sold and advertised will lose you money.

If you want to make money in forex – get the right forex trading education and forget the sure fire, you can win with no effort systems.

Get real, get the right forex education and you can enjoy currency trading success.

Forex Trading Robots – 4 Key Points Which See the Majority Destroy Equity

Forex trading robots are promoted as the way to financial freedom but common sense tells you they are unlikely to do this for you otherwise the whole world would use them and they don’t. Here are 4 reasons why you will probably lose your money.

- The Track Records are Not Real Trading

The track records look wonderful. Huge gains with little or no drawdown but of course there is a catch – It’s not a real track record at all its just paper trading.

“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading”

Look in the disclaimer and you will normally see the above, of course the fact you can make money backwards means nothing in terms of what you could make with the forex trading robot in real time trading.

You also have to question the vendor – if the system is as good as he says where the track record of real money is?

Maybe he simply doesn’t have confidence the system will make money and with good reason, he knows its curve fitted.

- There Curve Fitted

Most Forex Robots are curve fitted and this means the rules have been fitted to the data.

If the rules don’t work first time around, keep changing them and bending them until they do.

This of course is flawed logic, as no two segments of data are ever going to repeat exactly again and the system collapses in real time trading.

If you look backwards and know the history of course you can become rich beyond your wildest dreams – but it’s only on paper and you can’t buy anything with paper money.

- Test With a Demo Account

Most of the vendors who sell these systems say you have no risk as they will refund your fee and you can test it in a demo account first.

I often see people proudly saying they made money in a week in a demo account and the system must work in practice – again this shows basic lack of understanding on behalf of the user.

You judge systems over months or years and any system can be lucky in a few weeks – you would need to paper trade for 1 or 2 years to get a real insight into the system and by the end of that period you will either get bored and probably see it lose.

- Drawdown

While the vast majority of forex trading systems have curve fitted track records, it’s also interesting to see the amount of money that is recommended to start with and this can in many robots cases be $100 – 200!

The chances of you winning on this amount even with a good system are doubtful, as you don’t have enough to cushion losing periods and a few bad trades will wipe the account.

Leverage combined with tiny account balances means a wipe out.

If you want to win at forex trading get a proper forex education and don’t believe the sales copy telling you that you can get rich without knowing what you’re doing – you can’t.

Be realistic and work on the basics and learn currency trading the right way and you can make a lot of money but it’s not easy and you would hardly expect it to be with the rewards you can make.

If however you learn the right education and have the right mindset, you can forget about forex trading robots and losing and focus on winning in the worlds most exciting business global forex trading.

Forex Robots – the Dream of Big Profits But the Reality is Losses and a Wipeout of Equity

Forex robots are popular as they give the impression you can make huge gains with no effort and pay $100 for a lifetime income. The reality however does not live up to the hype for one simple reason…

The reason is that the robots claim bit profits but have never made any!

If you see a track record of big gains on a robot look at the small print and you will see that there back tests so the track records are simulated and done in hindsight on paper. Well this is no evidence that the robot will make money for you or any other user. Anyone can make money knowing all the facts and bend the rules to fit past data – but that’s not the real world of forex trading.

In forex trading you have to trade going forward and you don’t know what will happen next – this is the real world of trading and it’s much harder than making up a profit in back testing.

Common sense tells you that if the robots really did make the gains they claim the following would occur:

1. There would be a jobs shortage, as everyone would have a huge income for simply paying $100.00 and be trading.

2. The vendor would be so busy making a fortune he would have no reason to sell his great system or if he did it, would be very expensive at tens or even hundreds of thousands of dollars.

3. Banks, brokerage and hedge funds, would sack there management teams on millions of dollars per annum and have better results for $100 outlay!

Now none of the above has happened and the reason is obvious – Forex robots never produce the gains they claim in fact, the user normally takes an almost instant wipe out.

You can make a lot of money in forex trading – but you have to get the right forex education and understand it’s not easy – that’s why 95% of traders lose their money.

If you want to make money in forex then you can, don’t fall for the fantasy land of forex robots, understand the reality of a good forex education and the discipline to apply what you have learned, is the key to currency trading success.