Thursday, July 24, 2014

Why the Vast Majority of Forex Robots Don't Win

There is a huge industry in telling you it's easy to make money automatically and with no effort but the fact is most automatic forex trading robots will wipe you out...
 
First most robots are sold on the basis they work and make money and they produce track records which are astounding to support this but read this.
 
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading.
 
And to completely ruin the track record we get this and its obvious why you should discount it
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".
 
I don't need to explain that the above discounts the track record completely.
 
You need to understand that clever marketing copy and a glossy package cannot disguise the fact that the system has not been proven for what you are actually buying it for which is to make money.
 
These systems appeal to greedy, lazy and naïve traders who fall for the idea forex trading is easy and you have to make no effort to make money. They believe they are going to get financial freedom given to them and it costs them the price of a lunch. Well, common sense tell you that isn't correct!
No you knw it I know it, there is no easy money or guru about to lead us to the promised land and the whole world has not started trading and quitting there jobs (which they would do if the track records were real) for now the science fiction idea of robots working for you and you putting your feet up is a long way off in forex trading!
 
How to Win with a Forex Trading System
 
You can make good money though with a forex trading system, you just need to be realistic and find a decent system.
 
So are there any decent forex robots for automatic forex trading?
 
Yes there are a few sold with real track records and will pay for themselves numerous times over if you keep in mind the following:
 
1. Get a track record audited over 2 years plus
2. Check the drawdown and time to recovery and make sure you are comfortable with it
3. Make sure you understand how and why it will work so you can trade with discipline
4. Judge it over periods of years not months
 
Automatic forex trading can be successful just make sure you find the right system, have confidence in what you are doing, trade with discipline and look at it over years rather than months, do all this and you will be rewarded with currency trading success.