There are lots of forex trading software packages to choose from. You can choose ready made forex trading systems or ones you can test and program yourself but whichever you choose beware of curve fitting or you will lose as most automatic trading sotware is...

If you are buying a forex trading system and intend using the vendors signals from it and trading mechanically always check the system for the disclaimer below - if it has this on it chances are you wont make money - read it.

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. 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".

The problem with a track record with this printed on it is of course, that it's never been tested in the real world - its been back tested and simulated in hindsight and this makes it easy to make a profit, as you can curve fit the rules to fit the data.

It's so simple my 10 year old Niece could do it! Yet, people who buy don't seem to question the obvious fact a mechancial forex trading system has never been proven in the real world.

Many vendors simply bend the rules and parameters until they make it profitable. A trader I knew once liked this to shooting at a barn door and then afterwards drawing a circle around everyone to make it look like a bulls-eye.

The problem with these systems is that the same sequence of price history, is never going to repeat itself exactly and that why these systems lose.

Many vendors know there systems won't make money and that's why you never see a real track record; they simply simulate one, add some clever adverting copy and the naïve buyer never checks or looks at the disclaimer or even stops to think about it. He loses in the market and then scratches his head and wonders why!

Today there is simply a huge amount of forex software sold which promises you fantastic gains all for a few hundred dollars. You can simply follow the software and make money but the reality is - if they worked:

• The vendor would not be selling it he would be to busy making money.

• If they worked no one would work for a living everyone would be trading mechanical software!

If you see forex trading software which looks to good to be true, then look for the disclaimer we mentioned earlier and you're sure to find it.

Forex trading can offer you huge rewards but you need to be realistic do your homework and get the right forex education to trade and win.

If you really want to find a mechanical forex trading system then ONLY Buy one with a real audited track record over 3 years. It won't guarantee results - but the track record will give you confidence in the trading software and show the vendor actually has something to back up advertising claims.