So is it possible to turn on a forex trading robot and make money? Or is this a scam and should be avoided at all costs? Automated forex trading machines or EA's are very popular and there are a seemingly endless list of them all trying to get you to give them a try. Most people are skeptical about them as they seem to promise unreal returns in just a few months. Do these trading systems work and is is possible to make money with them?
I set about looking at systems that would work with my forex trading account which is based on Meta Trader and allows EA's. Most of the ones that I checked into had huge losses in the back testing results, and so I crossed them off the list. When I was through looking at back testing results, my list of potential robots had grown very small with only a few making the cut.
One thing about trading, is that it is a numbers thing, you may win 8 out of 10, but there are still going to be those two losses. This is what trips up most people who trade, as it becomes emotional to lose any money at all. The real key to accumulating wealth is to find an advantage no matter how small and press it. Forex auto trading is this way, if you can find a system that keeps adding to your position in spite of small losses, you can create some wealth.
All of these trading systems work a little differently in regards to how they seek to trade, some are very risky others seek small increases everyday. I found that the ones that seek small increases were much more likely to succeed than the ones that take positions and wait for the market to move in their direction. They also suffer quit small losses compared to the huge losses that trend systems can go through.
Keeping your losing to a small amount is how you build wealth over time. It is much harder to overcome a large loss than several small ones. It gets back to the numbers, if you have a winning system, just keep doing it until it makes you wealthy. This can be done 10 pips a day.
An area that separates the really good EA's from the so-so is if the EA can factor in the spread your dealer is offering. This is especially important if you are just trying to get your 10 pips and the dealer just raised the spread from 4 pips to 10.
Does the software you are looking at provide live trading results? Most of these systems show back testing data, but when you buy it and try it live, your results are nothing like what they show. The few systems that I found that can produce profit month after month, have live trade results listed on their sites, that updates at least daily. A new era of forex trading has begun, with automated trading systems that actually work.
I set about looking at systems that would work with my forex trading account which is based on Meta Trader and allows EA's. Most of the ones that I checked into had huge losses in the back testing results, and so I crossed them off the list. When I was through looking at back testing results, my list of potential robots had grown very small with only a few making the cut.
One thing about trading, is that it is a numbers thing, you may win 8 out of 10, but there are still going to be those two losses. This is what trips up most people who trade, as it becomes emotional to lose any money at all. The real key to accumulating wealth is to find an advantage no matter how small and press it. Forex auto trading is this way, if you can find a system that keeps adding to your position in spite of small losses, you can create some wealth.
All of these trading systems work a little differently in regards to how they seek to trade, some are very risky others seek small increases everyday. I found that the ones that seek small increases were much more likely to succeed than the ones that take positions and wait for the market to move in their direction. They also suffer quit small losses compared to the huge losses that trend systems can go through.
Keeping your losing to a small amount is how you build wealth over time. It is much harder to overcome a large loss than several small ones. It gets back to the numbers, if you have a winning system, just keep doing it until it makes you wealthy. This can be done 10 pips a day.
An area that separates the really good EA's from the so-so is if the EA can factor in the spread your dealer is offering. This is especially important if you are just trying to get your 10 pips and the dealer just raised the spread from 4 pips to 10.
Does the software you are looking at provide live trading results? Most of these systems show back testing data, but when you buy it and try it live, your results are nothing like what they show. The few systems that I found that can produce profit month after month, have live trade results listed on their sites, that updates at least daily. A new era of forex trading has begun, with automated trading systems that actually work.
About the Author:
Jason Marcano has been trading forex for years and has watched the development of currency auto trading software into what it is today. He can be reached at Automated Fx Trading or Automated Forex Trading Systems.
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