Forex Trading Robots - Losing Myths You Need to Avoid to Win

By: Kelly Price

The world of forex trading robots if you read the advertisements online is a simple way anyone can make money and a number of myths are presented by them, fall victim to them and you will lose. Here are the main ones.

1. A Simulated Track Record is Proof the System Works

You see some fantastic track records but most of the records are not real there simply a simulation on past data. Look in the small print and you normally see 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. 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".

If you see a track record with the above on it discount the track record and look for another system.

2. Clever Systems and Best

No there not the best forex trading robots are simple. Simple systems work best as there are fewer elements to break in the brutal world of trading.

You will see adverts on the net for people who say they are clever worked for NASA and all sorts but that's not a help in forex trading. You don't get rewarded for being clever - you get rewarded for being right with your trading signal.

Don't assume because the vendor is clever he is more likely to win.

3. Ignore Scientific and Predictive Systems

I see numerous systems based on science and they claim to know the formula of market behavior - Really? If they do, why are they not keeping quite and making millions?

These theories are normally based on "legends" such as Gann, Elliot and Fibonacci - but keep in mind these guys didn't win all the time and neither will you. If you could predict price movement there would be no market, as we would all know the price in advance - period.

Predictive forex trading systems are as accurate as your horoscope, don't fall for them.

4. You can trade with Little Drawdown

I have been in the game of forex trading for 25 years and have met some seriously wealthy, great traders and do you know what?

They all suffered drawdown periods of 6 months plus. If you don't think that happens, think again it does and to the top traders.

You have to be prepared to sit through weeks or months, of losses. Sure, over a year you might bank a triple digit profit -but you need to sit on some heat in between.

5. You Don't Need to Input Anything

Just turn it on and it makes money for you - not quite so simple in reality.

Any system has to be executed with discipline.

The currency trading system you choose, may be soundly based however, if you can't execute it with discipline, you have no system!

You need to do your homework and make sure you have confidence, to keep executing the trading signals, even when you're losing.

Automatic forex trading systems can and do make money for traders.

The message of this article is you need to be realistic and separate hype from reality.

If however you find the right forex robot and judge it over years, it can make you triple digit gains, in less than 30 minutes a day and that's not a bad return!

Just avoid the myths and choose your forex trading robot wisely.

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