Forex Robots - The Fantasy of Easy Profits the Reality of a Swift Wipeout
Of course the theory appeals, plug in a robot and it automatically starts giving you trading signals and you pile up huge profits but this is fantasy land, most will simply wipe your account out and do it quickly...
There are several robots that proudly present back tested track records on what they could have done - but there is a problem here:
You don't get the advantage of knowing the closing prices in the real world of trading! I can be a millionaire many times over, if I had the future prices today - but I don't.
Simulated Dollars V Real Dollars
Most of the robots you see (certainly the ones heavily promoted) have track records with simulated and in hindsight written all over them. This proves nothing - its real dollars made, that are the acid test.
Most robots go even further, by presenting there track records better than most fund managers (that's guys who are paid seven figure fees or more) and yet all you pay is $100! There is no real drawdown (even the best managers will draw down for weeks or months) and 20 - 30% of equity is no uncommon. Doesn't really add up does it?
I know lots of brokers and as yet, I have not seen a 100 buck robot put them out of a job.
The other thing that always strikes me is the small amounts, you can supposedly turn into large amounts and $100 is often quoted as a minimum.
How do you ride out a drawdown period on that?
Look for Real Dollars
Not all forex robots come with simulated track records and you do get some with long term track records. These have drawdown and realistic gains of between, 30 - 100%, over 3 year holding period. Always look for some real hard evidence that the forex trading system you buy has been applied in the real world of trading.
Anything less than 2 year track record should be discarded.
Most traders want an easy way to make money ( we all do!) but if you are an adult, you know life and making money is not a walk in the park, its hard at times but you can get rewarded if you work at the basics.
Build Your Own Quickly
You can build your own forex trading system and customize it to your risk tolerance; it's far easy to do, than most people think. If you do build your own forex trading system, you will understand it, have confidence in it and can apply it with discipline for currency trading success.
Reward Requires Effort!
The forex markets offer huge rewards but alas most of the forex robots you see won't help you win. No effort - no reward in forex trading. So be realistic and get to work, get some proper forex education and your all set to enter the exciting world of global currency trading and win.
There are several robots that proudly present back tested track records on what they could have done - but there is a problem here:
You don't get the advantage of knowing the closing prices in the real world of trading! I can be a millionaire many times over, if I had the future prices today - but I don't.
Simulated Dollars V Real Dollars
Most of the robots you see (certainly the ones heavily promoted) have track records with simulated and in hindsight written all over them. This proves nothing - its real dollars made, that are the acid test.
Most robots go even further, by presenting there track records better than most fund managers (that's guys who are paid seven figure fees or more) and yet all you pay is $100! There is no real drawdown (even the best managers will draw down for weeks or months) and 20 - 30% of equity is no uncommon. Doesn't really add up does it?
I know lots of brokers and as yet, I have not seen a 100 buck robot put them out of a job.
The other thing that always strikes me is the small amounts, you can supposedly turn into large amounts and $100 is often quoted as a minimum.
How do you ride out a drawdown period on that?
Look for Real Dollars
Not all forex robots come with simulated track records and you do get some with long term track records. These have drawdown and realistic gains of between, 30 - 100%, over 3 year holding period. Always look for some real hard evidence that the forex trading system you buy has been applied in the real world of trading.
Anything less than 2 year track record should be discarded.
Most traders want an easy way to make money ( we all do!) but if you are an adult, you know life and making money is not a walk in the park, its hard at times but you can get rewarded if you work at the basics.
Build Your Own Quickly
You can build your own forex trading system and customize it to your risk tolerance; it's far easy to do, than most people think. If you do build your own forex trading system, you will understand it, have confidence in it and can apply it with discipline for currency trading success.
Reward Requires Effort!
The forex markets offer huge rewards but alas most of the forex robots you see won't help you win. No effort - no reward in forex trading. So be realistic and get to work, get some proper forex education and your all set to enter the exciting world of global currency trading and win.
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