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 decided to find out for myself, and after months of testing with various forex trading robots and systems, automated and manual, I realized that most of them do not work and have given me significant amounts of losses in the testing. Despite the number of robots that failed, there were a several that have delivered consistent monthly profits, and I continue to use them.
With the most up to date automated forex trading software, losses are still unavoidable and will be made occasionally just like any form of investment. However, it is that the risk-reward ratio of currency trading, especially with robot trading, that make the risk of making losses on some weeks is well worth taking, because of the massive potential amount of profits that can be made.
The systems all have different criteria for taking trades, moving averages, fib levels, stochastic levels, etc. Some are shooting for the big wins and others are just taking a few pips every day. The later group is what I found to be the most effective, as it keeps the losing to a bare minimum.
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 important feature would be, does the currency trading software detect changes in the spread of the currency pairs? If so does it take that into account for the positions that it takes? This means if the strategy is based on taking 10 pips a trade and the spread moves from 3 pips to 8 or more, does the trading robot know this and stop taking trades?
This is the one area where most trading software gets killed in real time trading. It is why so many currency auto trading software programs show fantastic historical results, and when you buy it and try it in a live market you get creamed. It is a huge factor in separating the winners from the losers in auto forex trading.
I decided to find out for myself, and after months of testing with various forex trading robots and systems, automated and manual, I realized that most of them do not work and have given me significant amounts of losses in the testing. Despite the number of robots that failed, there were a several that have delivered consistent monthly profits, and I continue to use them.
With the most up to date automated forex trading software, losses are still unavoidable and will be made occasionally just like any form of investment. However, it is that the risk-reward ratio of currency trading, especially with robot trading, that make the risk of making losses on some weeks is well worth taking, because of the massive potential amount of profits that can be made.
The systems all have different criteria for taking trades, moving averages, fib levels, stochastic levels, etc. Some are shooting for the big wins and others are just taking a few pips every day. The later group is what I found to be the most effective, as it keeps the losing to a bare minimum.
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 important feature would be, does the currency trading software detect changes in the spread of the currency pairs? If so does it take that into account for the positions that it takes? This means if the strategy is based on taking 10 pips a trade and the spread moves from 3 pips to 8 or more, does the trading robot know this and stop taking trades?
This is the one area where most trading software gets killed in real time trading. It is why so many currency auto trading software programs show fantastic historical results, and when you buy it and try it in a live market you get creamed. It is a huge factor in separating the winners from the losers in auto forex trading.
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. Grab a totally unique version of this article from the Uber Article Directory
0 comments
Post a Comment