Posted June 1st, 2010 by sharkdancer
Let’s face facts if you could make money with all the forex robots you see, everyone would be traders and not bother to work.
After all you pay 100 and make a triple digit income then you have no need to go to work. Furthermore banks would sack there dealing teams (on seven figure salaries) as a hundred buck robot does better (according to the track records) and reduces the banks salaries dramatically.
Now none of the above has actually happened I know plenty of traders and they don’t use hundred buck robots and I know plenty of bank dealers whoa re still in their jobs earning seven figure salaries and bonuses. So why has the whole world not got into trading forex robots and why are they being sold? Why are the vendors selling them, when they make so much money.
Now a scam to me is when someone takes your money and gives you nothing and most forex robots I see don’t do this so they cannot be considered scams. They give you something describe it and its up to you if you buy it – that’s not a scam and many will genuinely give you your money back.
The main issue is when you have got it, will it make you money and can look forward to putting your feet up, playing golf and leaving your work to a robot? The answer is no, not with the robots I see for sale, because they all have problem which is summed up in this statement:
“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading….. 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”.
Look on the promotion for the system and you will probably see it.
This is easy, we can all make paper money knowing the price data but you have to trade forward in the real world and you can’t spend paper money.
Generally, these forex trading systems look at the price data and then keep bending the rules until they have a profit.
The problem is:
No two weeks of data are ever going to repeat exactly again and this means losses, as the rules were bent to fit the snapshot.
This is the flaw and you get many forex trading robots which are clever and lose because they do this and it obviously wont see the same results again.
I once made the mistake of buying one built by an ex NASA employee and never noted he had never made real money, I was to impressed I had a man who had helped man walk on the moon on my side!
What happened to my equity?
The system wiped it out in a couple of weeks and this system cost me $10,000 dollars back in 1991! Ouch.
So are forex robots scams?
No – they give what they say and that’s a system that worked in hindsight – there not deceiving you, they give you the warning, if you decide to take it then that’s up to you. Many will give you your money back but that’s not really much if you get wiped out in the market.
There are very few forex robots with track records that are real of 3 years or more and you can find them but most come with simulated track records and you have to decide, if they will make real money. Me? I think I will give them a miss, even if they worked for NASA!
Posted May 31st, 2010 by sharkdancer
In today’s competitive world, it seems almost impossible to wade through the hype and aggressive sales pitches when we start looking for products and services to purchase that we hope will enhance our lifestyles.
It’s no different in the world of Automated Forex Robots. If you’re like me, you probably get at least one advertisement a day in your email inbox promoting the next “million dollar” Forex software.
If you’re thinking about trading the Forex market and you’ve been looking around for a way to automate at least part of the process, you may be wondering how to tell if an advertised Forex Robot will help you trade profitably or not.
Not all Forex Robots are created equal. Many of these Forex Robots are down right scams.
Before you jump in and buy the latest Forex Robot, here are a few things you’ll want to look for in a Robot that will trade profitably for you.
1, Make sure the robot you are looking at is designed and backed by professional traders.
2. Look for an automated system that is relatively easy to understand and has good tutorials.
3. Choose from Web-based or desktop based software. If you’re on the road a lot, and you’re using a computer that is not your own, you’ll want to choose a Web-based system.
4. A good Forex Trading Robot should come with a Demo account so you can familiarize yourself with the trading process before making any real trades.
5. The Company you buy from should offer you 24/7 support.
6. Always check what kind of security comes with the software. To prevent access to hackers it should include 128-bit SSL encryption.
7. Ensure that the Forex Robot you are buying has at least a 60 day Guarantee.
That way you’ll have some time to test out the Robot and see if it is right for you.
The Forex market is HUGE. The opportunities for the novice to trade profitably have never been better. With an effective Forex Robot automating the trading process, the chances of creating a decent monthly income overtime is greatly increased.
Posted May 31st, 2010 by sharkdancer
The landscape of Forex is littered with a multitude of Forex Robots that have bitten the proverbial dust. These are the automated systems that claimed great profits could be gleaned from the Forex market for the hapless buyer who happened to buy one.
The only thing these Forex Scams delivered were empty promises that emptied the pockets of their disillusioned victims.
So are there any Forex Robots that can actually make a profit on the Forex market?
There are a few out there, and here’s what to look for if you’re in the market for a solid trading system.
1. Does the track record of the Forex Robot look too good to be true?
Most Forex Robots are only back-tested for a very short time period and then make bold claims that they can be profitable in live trading.
A Forex Robot needs a decent time frame to be back tested in. There is one robot that has been back-tested for the last nine years which means it has been tested very robustly and in that time made approximately 9476 trades.
Always find out how long a Forex robot has been back-tested. The less time back-tested the more likely it won’t fare well in live trades.
2. What Is The Live Trade Record? Of course back testing isn’t enough to prove a Forex Robot’s worth. The proof of course is in the way it functions in live trades. What is its live trade record?
A Forex robot that is going to be worth using should turn 30 to 100% annual profits. Anything less should be avoided.
3. Support and Ease of Use: Look for good live support from the vendor. Also make sure that the Forex Robot is technically easy to use and monitor.
4. Always dry run the system to make sure that you know what you’re doing before you begin live trading with real money.
5. Last but not least, make sure that your Forex Robot comes with at least a 60 day guarantee; so that you can have enough time to test drive the system. You want to make sure it will work profitably for you without any risk.
The best Forex Robots will give you excellent long term profits when used with discipline and with the knowledge that there will be some short term losses along the way
Posted May 29th, 2010 by sharkdancer
If you haven’t been hiding in a cave for the past two years or so, you probably know that everyone wants in on the Forex market.
Who wouldn’t want to just skim $200.00 to $300.00 a day off the massive currency market, where as much as $3 TRILLION dollars is traded daily!
Maybe you’re like me, you see the tremendous potential to create this nice daily stream of income in currency trading, but to attempt to wade through the technical jargon and then start in trading yourself is a bit intimidating!
So what about all those crazy Forex Robot Scams you see being hyped daily in your email inbox? You know, the promise that these little uploadable software programs will automatically create you a fantastic income without you lifting a finger.
Is it really possible for the average Joe to upload some software (the Robot) onto a Metatrader chart, turn it on and “presto” it begins to trade profitably for you?
It sounded a bit too good to be true when I first heard about these Forex Robots. I was taught the traditional method of Forex trading, and at one time I even bought a $2000.00 course that came with about 10 DVD’s and a thick manual on supposedly all the tricks of the FOREX trade.
I suppose it helped me see the big picture of currency trading, but the learning curve is pretty steep. I eagerly went through all the materials, and then began trading in the Forex market. But I still struggled to make a profit, even after all the information I stuffed into my small cranium.
I even attempted to find a broker to make the trades for me. Maybe I didn’t find the right one. Although I made a little money, he always ended up with a good percentage of the profits anyway.
Then a good friend of mine, who had been involved in the Forex market for the last 5 years, gave me a call. He had been experimenting with a few of these Forex Robots that had become all the rage in the trading world.
He said he had been as skeptical as I was, but couldn’t resist the opportunity to see if all the hype about these Robots was true, or if they were merely scams. After doing a lot of research and talking to fellow traders, he began to put a few highly recommended robots to the trading test.
The first two he started with were totally worthless, and after several losses my friend quickly shut them down. He told me at that point he figured the Forex Robots were just that…scams.
But he wasn’t ready to give up yet, and as he continued his research, he came upon another Robot that quite a few Forex traders were talking about on a trading forum. It seemed they were able to create some pretty decent profits using this trading robot and were enthusiastically recommending it.
It was time to experiment again. My friend ordered the Robot these traders were raving about, and now, after his first two Robot duds, set this one up to trade with every expectation it would fail also.
He decided he would start trading with $350.00. He set up the robot, and quite frankly he forgot about it for about a week. When he remembered to check his account, he fully expected to see what he had experienced with the other robots.
What he did see made him do a double take. There was $750.00 in his account after only 7 days. He had already doubled his money!
Excited by the possibilities, my friend continued to monitor his account. In two weeks his $ 350.00 seed money had grown to $1400.00. After a month he had a total of $3200.00 in his account!
It was no wonder this powerful robot was all the rage. Of course after this exciting testimonial from my friend, I had to get this little robot and try it for myself. After I uploaded the robot to my Metatrader chart, which was surprisingly easy and only took about 5 minutes, I was ready to go.
I put in $300.00 to trade. I too was astounded at the accuracy of this robot to read the currency trends. To make a long story short, after one month of trading, my robot gained me a total profit of $2500.00! Needless to say I was hooked.
The moral of the story is that not all Forex Robots are scams. In fact, there are a number of these robots that are professionally packaged for profitability, affordability, and effectiveness. All Forex Robots are not created equal. In my next article we’ll find out what to look for in a robot that will make you a profit.