Forex trading robots are more popular than ever and with the power of software programs back testing data has never been easier and there are many systems to choose from but how do you find a good one – lets find out… While there are many forex robots to choose from, 99% of them are junk and won’t make you any money. Why?
Because they simply have never been traded and normally come with the disclaimer below – most forex traders don’t read it, if you do, you will see why the vast majority fail in real time trading – 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 the seller of a forex trading robot can present any track record they like which they can simply make up! The problem of course is that as the system has never been traded, you have no idea if it will be profitable or not and the track record is worthless.
Traders should realize this by asking themselves this simple question:
If the forex trading robot is so good, why doesn’t the vendor trade it for real and if it does make such big gains, why is he bothering me for a few hundred bucks?
Well now you know the answer.
The vendor doesn’t real care if the forex trading system makes money or not – they are not relying on its profitability in the market, just the fact that they can make some system sales.
There are a few trading systems which come with real time track records – but even here you have to be careful, that you understand how and why the system makes profits, as you are going to have to be able to follow it through losing periods with discipline.
Forex trading can make you big profits but be careful of the forex trading robots!
Make sure it has a real time track record and that you know how it works and have the confidence to follow it, with discipline to achieve long term forex success.