Forex Robots – 4 Myths About Them Which Cause Losses
May 31st, 2009
Forex robots and Expert Advisors lose money and none of the popular ones, ever reproduce the gains in thee track records but investors still buy them, because they believe the 4 myths enclosed, make sure you don’t make the same mistake.
Let’s look at the myths and then the reality trader’s experience
1. Track Records Better than the World’s top Fund Managers for $200.00 or Less!
Traders never seem to ask themselves why these systems are so cheap; after all you are getting a track record which would make even great traders like Warren Buffet look average! The reason of course is the track records never repeat.
If you look at them closely, there mostly simulations done backwards (knowing the closing prices) which is easy or you get figures from the vendor with no independent verification whatsoever.
You don’t get a lifelong income for the cost a good dinner out and that’s a fact, these robots are cheap because they don’t work.
2. They Use Sophisticated Algorithms
The story goes that these systems have formulas which can predict future price movements but a closer look will show the algorithm is basic and because the track records are tested backwards, they have to be bent to fit the data and money management suffers. As the prices never repeat the same way again, the system gets taught a lesson by the market and loses.
3. Get 100% + Gains and Less than 1% Drawdown
Anyone who has traded knows this is not true, because the bigger the gain the bigger the drawdown, that’s just the way it is, even for the best traders. Not even the world’s super traders on hundreds of millions of dollars a year in salaries could achieve such a high growth rate to drawdown, so don’t expect a cheap robot to do it either.
4. You Have no Risk as You can Try in a Demo Account
So you can try it in a demo account for 60 days and see if it works which is fair enough – but why waste your time? It’s obvious the systems don’t work, if you’re bored or curious you can but think I might pass the opportunity by.
How to Win at Forex
Forex trading can give you big gains but if you think your going to get rich with one of the heavily sold robots or Forex Expert Advisors, you will end up disappointed so get yourself a decent Forex Education instead, learn skills and trade for big profits on your own.
Anyone can learn Forex trading and if you do it correctly, you will be well rewarded for your time.
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