Forex Trading Robots – Pro’s and Cons and Cons Come Out Ahead!

Forex trading robots are all over the internet and it’s a wonder anyone works for a living, we could all be trading! This of course is not the reality, so if you are considering buying an automated trading system consider the material which is in this article first…

Let’s take those tremendous track records you see well they are not all they seem. Read the warning below and you will be enlightened.

“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.

See a forex trading robot track record and you will find the above somewhere and of course it’s really is not money you can spend its all tested backwards!

The real world of forex trading is trading forward and 90% or more of these robots fail miserably and wipe out equity.

These systems are simply bent to past data which of course, never repeats again in the same sequence and the system breaks destroying equity as it does so.

Anyway if they did work they we would all be rich! Pay 100 bucks and were on the road to financial freedom but life is not like that. There is a big industry that tells you forex trading is easy and its pretty clear its not, as 95% of retail traders wipe themselves out pretty quickly.

You can get good forex robots but expect to pay thousands for a decent one with a real track record – they can pay for themselves many times over but they cost.

No if you want to make money at forex trading you have to do your homework and make sure you get the right education and use it with the right mindset.

Forex trading can be learned by anyone – but requires unique skills, which are a combination of knowledge confidence and the discipline to execute a trading plan.

You can build your own forex trading system in about 2 weeks, trade it in about 30 minutes a day and make a lot of money – but understand this no one gives you nothing in this world but you probably knew that!

So get the right education a mindset to succeed and get on the road to forex 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.

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.