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Thursday, August 28, 2008

Forex Robots - 6 X Facts That Cause Most to Lose Equity









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If you want to buy a forex robot, you should consider the facts enclosed because if you understand them you can avoid the losing majority of automated forex trading software and find the small minority that win...

Here are your forex robot facts - make sure you understand all of them before buying one.

Fact 1: Most Do Not Have Real Track Records

They claim to have made money but a quick look at the disclaimer shows they are simply paper simulations going backwards and you see the words in hindsight and simulated in the disclaimer. See this and pass it by, it probably won't make you any money for the next reason.

Fact 2: Most Robots are Curve Fitted

This means when the simulation is done, the rules are simply bent until they fit the data segment being tested shows a profit and this is pointless. Why?

Because the same price history will never repeat itself again exactly as before and you cant bend the rules going forward!

Fact 3: You Can't Win on 100 investment

The fact that anyone says you can is relying on you being very, very lucky, or knows nothing about forex trading.

The minimum you should consider is a $1,000 and preferably $3,000, to ride out any drawdown periods.

Fact 4: Any Trading System will have Long Losing Periods

Forget the statement you can make a regular income - you can't.

Even the best traders have losing periods that can last for many weeks or months. This doesn't mean you can't win long term you can but beware, you will face long periods of losses.

Fact 5: Most Vendors are NOT Successful forex traders

If they were, they wouldn't be selling you a forex robot for $100 and claiming it makes $100,000, they would be to busy making money to bother you.

Ever wonder why everyone in the world isn't trading?

Well the answer is - only the naïve or greedy trader buys a forex robot thinking he can get rich for $100.00 or so.

Fact 6: The Minority that Win

Have real track records and cost a few thousand dollars but they are a great investment and can make the investment in them back many times over but be aware, even the best ones have periods of losses ( normally 20 - 50%) and these can last for weeks, so you need discipline to trade them.

You can win with a forex robot but it's a fact that most sold will simply destroy your equity and do it quickly. So cut through the hype, be realistic and go for one which has at least been proven in the real world of trading and is not just made up in hindsight!

3 comments:

Anonymous said...

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Anonymous said...

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