Forex Trading Robots – Why Banks and Serious Traders Don’t Use Them

Forex trading robots are sold as an easy way to make money with no effort so, why don’t banks and major dealing houses sack their dealing teams and save millions in annual salaries – Why? Because Forex robots lose money…

It never seems to occur to traders that the Forex robots sold heavily online, say they have better track records than the world’s top fund managers and yet, anyone can get instant wealth (if you believe the sales copy) by spending just a few hundred dollars. Doesn’t add up does it?

The reality of Forex Robot trading is that users quickly lose money, because the robots don’t work and are based on unsound logic.

They use back tested simulations over historical data and then a make hypothetical track record of gains but this is easy, as you know all the closing prices and when they trade forward not knowing this key data, they fail and lose money.

Because these systems have bent a track record to fit the data in hindsight, don’t have any proper money management rules. Losses are huge and as money management is the key element of successful Forex trading, a wipe out of equity soon occurs.

As yet, no major banks, brokerages or fund managers, have sacked there dealing teams on millions of dollars in salaries and replaced them with a team of Forex robots.

The buyers of these robots tend to be naïve or greedy investors, who dream of instant riches and are rewarded with a wipe out of equity.

If you want to win at Forex trading, get yourself a decent Forex education, learn skills and your efforts will be well rewarded.

Forex Trading Robots – Why Do We not Give Up our Jobs and Use Them?

I checked a forex trading robots track record the other day and if I ran my trading account size on its track record I would be making $324,000 a year! Not bad for an outlay of a few hundred bucks. People fall for these track records, yet they always lose why?

Because their greedy, think forex trading requires no effort or they simply don’t read the disclaimer which is tucked away in the small print.

If you see a track record of a forex automated trading system on the net with this disclaimer then it probably spells a wipe out of equity here it is:

“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”.

So they are not real time profits there paper profits made looking backwards! Would you trust the above?

I know I wouldn’t!

It amazes me how many people buy these unproven systems.

Most of the track records are so good, you wonder why the vendor even bothers selling it – he could make enough money by trading it. Of course he doesn’t, because he knows it won’t win and that’s why you never see a real time track record.

Do savvy forex traders use them, do you see them in bank dealing rooms or do you ever see anyone who has made long term money with them – No you don’t.

Today there is a huge industry in these trading systems and they appeal to the naive and greedy traders, who won’t to make money with no effort.

Of course in life you get out what you put in and forex trading is no different.

Forex trading can offer you the ability to make huge profits and even a life changing income – but you must have the right mindset and get the right forex education.

A forex trading robot probably will destroy your equity – but you don’t have to take the lazy path!

Forex is a challenge, an exciting one, with huge rewards so accept the challenge, get the right forex education and you can enjoy currency trading success.

Forex Trading Robots Vs Manual Trading Which is Best?

Should you buy a forex robot and trust it to lead you to currency trading success or should you learn forex trading yourself and trade manually? Which is more likely to lead you to currency trading success?

Consider this question:

If forex robots make as much as they claim why don’t banks and brokerages sack their fund managers and dealers and use robots?

Think about it – most of the forex trading robots you see claim to make as much, if not more than the best bank dealers, yet only cost a few hundred bucks.

So why don’t the banks and brokerages sack their dealing teams that cost them far more? You could ask yourself as well – why bother working, when you can just sit at home, put your feet up and your robot goes to work for you?

The answer is of course the forex trading robots you see online won’t make you money long term. Why? Well consider this, all the track records you see are made up in hindsight and simulated, there NOT real trading. Here is the typical disclaimer you will see:

“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”.

Think a track record with the above printed on it will make you money? Well try it and see!

These automated trading systems are designed to appeal to the greedy or naive investor and they really should know better – making money in any venture is not easy.

There is one advantage you have over any robot – you are capable of independent thought, no computer can think for itself and your brain is an amazing tool – if you use it correctly.

The rewards with manual trading are huge and you need to work smart and get a set of trading rules, to execute your trading system and have the discipline to follow it.

Forex trading offers huge rewards for the effort you need to put in and anyone can learn to trade – it’s just a question of having the right mindset and right forex education.

Today, we marvel at computers and how they have enriched our lives – but in forex trading the appliance of science is not enough, as markets don’t move to set formula’s, there an odds game. However, if you learn how to trade the odds you can win.

So which is best using a forex robot or manual trading?

You know our view its manual trading although we have seen some robots that can make money (they are either expensive or require tremendous discipline) you can make more if you apply yourself correctly.

Forex trading is a challenge and one you win just keep in mind you can win have confidence in your ability and learn currency trading for long term gains and don’t trust anyone else – especially not a forex trading system with a simulated track record!