Forex Trading Robots - Why Most Automated Trading Systems Sold Will Destroy Your Equity
Finance → Stocks, Bond & Forex
- Author Monica Hendrix
- Published June 7, 2008
- Word count 426
There more popular than ever and greedy investors think they are going to get rich quickly with no effort. The reality check is almost all robots will destroy your account equity quickly...
95 - 98% of robots I see on the net have not even been traded!
The track record has this disclaimer on it.
Look for it in the small print if you see it and read it you will understand why it probably will fail miserably:
"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.
then of course the statement that makes the track record no use at al in determining profitability:
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".
Now what is the logic of having a track record that has never been traded and what does it tell you?
Does it indicate anything about the profitability of the system - NO
Of Course it doesn't and it's a wonder that these track records are allowed to be used to sell to the public. Most of the time the traders buying the system don't dig to deep and are generally trusting throw in some good copy and there soon buying the system.
I always read about how these forex robots are sold by ex bank traders etc - there not, there sold by marketing companies looking to tap into the huge market in forex trading products.
You can make money in forex but an automated trading system that has never been traded is not the way to do it. Let's make one point clear:
Forex trading is NOT as easy as giving a few hundred dollars and buying success in a box - life isn't like that!
You need to get the right forex education and do your homework - if you want to buy a forex trading system you can find some good ones with track records if you shop around - but never ever buy one with a simulation.
You could trying writing to the vendor and ask for his track record audited over say 2 years and see if you get a reply but don't hold your breath.
NEW! 2 X FREE ESSENTIAL TRADER PDFS & MUCH MORE!
For free 2 x trading Pdf's with 90 of pages of essential info on Forex Trading Success visit our website at: http://www.learncurrencytradingonline.com.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Fintechzoom Apple Stock: Get some Apple everyday!
- Nasdaq Fintechzoom
- Dow Jones Fintechzoom App.
- Is First Nexus Legit or SCAM? - Review of firstnexus.io
- Send Money to Tanzania: Effortless Transfers with SafariRemit
- Who owns the most Bitcoin?
- Fintechzoom IBM Stock: Powerful!
- Bitcoin FintechZoom
- Unraveling the Dynamics of High-Frequency Trading (HFT) Operations
- Memecoin craze: PepeTurk could be next
- How To Evaluate A Company Before Investing In Its Stock
- 5 Ways to Make Money from Stocks in 2023
- A Beginner's Guide to Forex Trading: Tips and Strategies for Success
- Understanding Currency Trading: A Beginner's Guide To How The Market Works
- A Recession Is When Your Neighbor Loses His Job
- Inflation Is Gas Powered
- The Failure Of Global Supply Lines
- California's Energy Crisis
- The Day Charles Schwab Bought Lunch
- Where to learn how to Trade Stocks for Beginners?
- Bank Guarantees BG and Standby Letters Of Credit SBLC
- Q3 2022 Investor Conference & Events Highlights
- IPOs and SPACs Come Full Circle as Liquidity Dries
- What is a Structured Settlement Annuity?
- Are you in Rat Race?
- Weimar America?
- Stock Loans: A great, safe alternative for listed companies and stockholders alike.
- IPCAPITAL:IPCapital's AIA BOT System is Transforming Forex Algorithmic Trading
- Insights on Where to Buy and Sell Bitcoin Instantly
- What Are Forex Signals?