Automated Forex Trading Systems - Good & Bad

By: Monica Hendrix

Automated trading systems, there all over the Net promising huge gains but very few deliver and probably 95% + will wipe your equity out and this is despite them having profitable track records why is this? Lets find out...

Forex trading robots appeal to trader's greed and these traders never question the track record which normally has the disclaimer below written on it - read it carefully and you can see why most fail:

"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".

The track record is not real it's a paper exercise, constructing a track record that looks good using the past data.

Does a track record like the above indicate future profitability for the trading system?

Of course not - it's easy to trade knowing what happened but that's not the real world.

Common sense tells you this.

You have track records presented that many senior FX managers I know would be proud of and they earn seven figure salaries and as yet, I have not seen any of them sacked in favour of an automated forex trading system that costs a few hundred bucks!

If you have understood the above, you will know why. Let's be clear:

You can make a lot of money trading forex - but you need to get the right forex education and do it on your own. Forget the short cut routes that look to good to be true they are and work hard at the basics of currency trading.

You need a simple method, confidence in it and the discipline to apply it.

The reason forex trading is so lucrative is because most people wont do the basics and accept they have a learning curve to go through to win.

If you accept this and learn currency trading the right way, you have huge profit potential and the chance to enjoy currency trading success.

Leave the "sure fire" automated forex trading systems with there simulated track records alone and get the right forex education and win.


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