Forex Trading Robots - Avoiding Scams & Losing Software

By: Monica Hendrix

The Tip enclosed will help you avoid forex trading robot scams and the vast majority of losing systems. It's very simple and if you use this tip you will save a lot of money - here it is...

Check If the Track Record Is Real!

This might sound obvious after all you want to know the system has been tested and traded in real time and made money. While making money in the past is no guarantee of future results it at least shows the logic of the system is soundly based.

The problem with most forex robots is they have never been traded by the vendor. Sure you get a track record but the catch is. Its only simulated knowing what happened in the past. Here is the disclaimer you will normally 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".

So if you see a robot with the above on it pass it by or ask for a real time track record or proof the vendor has traded it supported by account statements.

The Power of Marketing

You won't get an answer normally as these systems are simply designed by marketing companies. Make up a track record, add some clever copy and sell it. The forex trader who buys these systems either doesn't see the disclaimer, or doesn't consider it important and pays for this with a swift wipeout of equity.

The Real World

Your not going to get rich by buying a software package for a few hundred dollars - making money isn't that simple - if it were, then everyone would be trading and not working. Banks and brokerages would sack their fund managers and cut their wage bills dramatically and most of these software packages claim to have better performance than most funds!

Making Money

There are a few good forex trading robots about with real time track records - but there few and far between and there not cheap expect to pay $2 - 20,000 for one. There are some free ones around to and were huge fans of Richard Donchian's 4 Week Rule - it's not perfect - but it will beat 99% of robots sold and its free.

Make sure you keep the above tip in mind and consider that you, me, my 8 year old son, or anyone else, can make money in forex trading backwards but you don't get money for that you get paid for trading without knowing what will happen next and that's a bit harder.

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