Forex Robots - Why Most Never Make Money in Real Time and Destroy Equity

Forex Robots - Why Most Never Make Money in Real Time and Destroy Equity

by Samuel Lesley Berkovits

Forex robots are the preferred option of many forex traders but most are simply a way to lose money and the clue why is in the title of this article - the track records presented are always simulated in hindsight - which means there made up in simple terms...

Would you take driving lessons from someone who hadn't passed there test?

Of course not, so why would anyone trade a forex robot that had never been traded and proven in real time? Well lots of traders do and they either don't see the disclaimer, or are naïve, greedy or both.

An Unfair Contest

The forex robots you see always have aggressive names that indicate they take on and beat the market - but it's a bit like a heavyweight boxer V a lightweight and the market is the heavy weight!

There aggressive names and fancy packaging and hype are no match for the brutal reality of price change in the real world of trading.

Curve Fitting is Doomed to Failure

The real problem is that they back test the rules and keep bending and optimizing them until they show a profit on the segment of data analysed but this is doomed to failure. Why?

Because the exact sequence of data never repeats exactly and you cannot change the rules in real time!

Markets are an Odds Game

This is known as curve fitting and it will never work on a market which is not orderly. The markets are an odds game not a game of certainties and you can never curve fit and win.

How to Win

If you want to win at forex trading you can by getting the right forex education and a simple robust forex trading system which you can apply with discipline and remember - it only needs to be simple, complicate a trading system to much and it will have to many elements to break.

So leave the forex robots to the greedy losing investors and make some effort, work smart and you can enjoy currency trading success.