Forex Robots - the Track Records Look Great But They Always Lose - Why?

The vast bulk of Forex Robots will simply wipe your account equity out and the reason is obvious why they don't work. The reason is easy to spot; all you need to do is look for the enclosed...

You will see a track record of with huge gains, in fact if the gains could be replicated in the market the system would be worth millions and not 100 dollars!

So what's the catch?

The catch is the track record simply is NOT real trading - it's made up!

Look at most Forex robots or automated Forex trading software and then go to the small print and you will see the statement below which tells you all you need to know about why the system will fail in the first few lines:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading.

You have a Forex trading system claiming it can make money - but it has never done so in the market itself!

The track record is simply a back test, knowing exactly what happened and the vendor can buy at levels knowing all the prices. That's why you get track records that have such big gains - but the flaw is obvious, you don't know where prices are going to go, when you trade for real in the brutal hard world of Forex and that's why these systems fail.

The vendors don't try and hide the fact they have simulations, most are up front and tell you in the text or disclaimer - but it's an absolute mystery to me, why anyone would trust a back test and think they will make the same in the market.

The reason back testing is flawed, is that you can bend the system to a segment of data in the past and make it work - but you never have the same data sequence repeat again and the system collapses.

Common sense tells you - that if the systems really did work, the vendor would keep quite and trade himself and not bother you for a few bucks.

Many of these systems laughably describe themselves as Expert Forex Advisors - but there not experts at all. An expert is someone who is proven in their field and these are not - they have never made real money at Forex trading, so how can they be experts?

The advice here is steer clear of any Forex robot system, unless you want to lose your money and join the 95% of losers at FX Trading.
Author: Sonia Kristina