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How many automated forex trading systems do you see promoted heavily online? Loads but the overwhelming majority don’t make money, for one simple reason and that is the subject of this article.

If you want to know why check the track record and look for this warning.

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

So these track records are not what they seem!

You would expect if someone was claiming to make you money and presenting the track record as evidence that they can win, that the track record would be real money, not just a back test.

So how seriously should we take these track records, let’s go to the end of the disclaimer and find out.

“No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.

Interesting isn’t it?

What is the point of a track record that really means nothing?

If you went to a golf instructor and he told you he hadn’t played golf but he did very well on his son’s computer game and thinks he can do a good job teaching you, you would think he was mad! However, there isn’t much difference between this and trusting a simulation in my view.

Many vendors are proud of there back tested track records and the hundreds of thousands of dollars they have made but this means nothing in terms of future profits. If I could trade in the past I would be a multi millionaire and get every trade right but that is not reality.

Getting a Robot for Profits

There are robots out there with real track records and you can find them if you look, there more expensive than $100 ( which seems to be the standard price of the ones with simulated track records) but you get what you pay for. You can also get an excellent one for free – The 4 Week Rule, look it up, it’s free, easy to understand and works.

I saw a catchy title forex robots taking over the world or similar, implying everyone would be using them and it made me laugh, great title but don’t think it will happen somehow.

I was chatting to a broker friend of mine and he runs an investment team that manage about $500 million.

I asked him what his track record was for the last 3 years 37.6% compounded, he proudly told me ( I checked a robot and found it at over 100%!) now funnily enough, he earns about a million bucks a year and I Don’t think a $100 robot is going to take his place.

You have to admire the slick marketing and I personally love the names – there all mean animals or have names that imply death and destruction to the market – but in the brutal hard world of trading:

In the Blue corner, The Forex Robot Never fought before but up for it (done well in training) in the Red Corner the champion the forex market..Seconds out round 1!

And – The winner is by way of knockout, undefeated in hundreds of years, and still the champion – the forex market!

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It seems like all you hear about these days is how people are going crazy over these forex robots that have become so en vogue. But do they actually work? Think about it! In all this time that you’ve read about them in forums, chat rooms, etc….. have you ever know anybody who had success with them trading in a real (not demo) account? My guess is you haven’t.

Have you ever noticed that the ones you do hear about having success in the demo accounts, the moment they are traded on a real account with real money, the account crashes. Funny how that works, huh?

The fact is that I, not only wouldn’t trust the robot to trade for me, but I wouldn’t trust the broker I am using the forex robot on. Forex brokers (all brokers for that matter) are renowned for their questionable trading policies (e.g. hunting for stop losses), so you could imagine all the questionable tactics they could use on trading robot, which is something you have no control over.

Also, the fact that some automated system can tell you where the market is going to go is absurd. The market is too complicated for a machine to follow blindly based on the parameters of the developer. You think a forex robot has any idea what to do if the Fed comes out and lowers interest rates by half of a point instead of a quarter of a point. It would have no idea. This is something that they just cannot simulate.

John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared. You too could learn how to trade.

As you know, the markets aren’t good right now. People are scared. Every day we watch wild swings and it’s all we can do as investors not to dig a hole in our backyards and bury our money. But not all markets are bad. Many investors are turning to the foreign exchange commonly know as Forex for profit opportunities.

If you don’t have a lot of experience with Forex the trouble is conquering the learning curve. But there are ways to master the learning curve easily and quickly, in fact, you can do it immediately and that starts with a Forex trading robot, bot for short.

What are Forex Robots?

Put simply: a Forex bot is mathematical software that scans the foreign exchange for profit opportunities and makes trades on your behalf. A Forex bot can do the work of a hundred individual stock brokers. Brokers would have to spend hundreds of man hours scanning through mountains of financial to find quality stock picks guaranteed to earn investors a profit. A Forex trading bot runs on your machine and does the same work of a hundreds brokers and does it in a fraction of the time. You can turn it on and do other things while your robot does the picking and trading work for you.

Do Forex Robots really work?

Yes, they work. However, be careful. They are some bad Forex bots out there. I link to one of the top bots out there at the end of this article. I’ve fully tested it with success. It works. But don’t take my word for it. Try the demo version and run some hypothetical picks in demo mode. Would you have made money? Run test picks for a couple weeks and discover your success rate. Is it high? If so, you now know your Forex bot works.

Is this expensive?

No. It used to be. In fact, stock pick software used to be so costly only the biggest investment and trading firms could afford to have it. Thanks to the internet and a dedicated group of traders who are also programmers the Forex bot can be had for about the cost of dinner and drinks. It’s cheap and well worth the investment because Forex bots work so efficiently and with so much success.

Discover more about Forex Trading Bots right now. You can start earning profit immediately. http://www.pagex.com/forex-bot

There are many different software being developed lately to automate trading in Forex. They are able to trade currencies without needing a person to execute trades. Automated trading is a field that began emerging not long ago.

Automated trading has number of advantages over manual trading. Such advantages for example are:

It is executed by computer. Today information technology and computer science are developed to a very high standards. Computer can perform thousand calculations while human performs only one. It work outs logical computations without error and stores memory at incredible speed.

Automatic trading takes emotions out of your trading. It will never make decisions driven by greed and fear. The software never hesitates to take a trade or close a position. All the trades are based on set rules and criteria that eliminate the human psychological errors.

Trading software can take trades day and night without weariness. It frees a trader from the necessity to be glued to his trading charts all the time. Once a successful trading system is developed and optimized into a trading robot it can be left to run independently.

On the other hand automated Forex trading robots have a major flow. They do not have the “feel” for market as a human trader does. If trading software is making profit once market conditions change it may start loosing money. That kind of change can be perceived only by a human eye. For example if behavior of the currency pair was predominantly trending and a trading robot was making profit. Once that currency pair becomes mostly ranging trading robot will lose money in such market.

Here is my personal experience with automated Forex robots. In the beginning of my trading experience with them I was constantly failing. My equity curve looked like a trajectory of falling rock. The only problem for me was that over time those programs and Expert Advisors stop making profit as they did it before.

I tried different kinds of software and Expert Advisors. Finally found what I was looking for. I have posted my trading results with this one at Forex automatic robots. I gave more detailed overview as well as trading results on Metatrader platform.

Also I highly recommend you to visit Forex-Opportunity.info to learn more about automated Forex trading. At least sign up for a newsletter to get a comprehensive trading advice

All forex robots have profitable track records yet most will wipe out your equity quickly and there is a reason for this its called curve fitting. If a track record is curve fitted then it won’t make you money and that’s why almost all forex robots give you losses. This will become clearer if you read this article…

First lets look at a warning that you will find somewhere in the small print which accompanies the track record. You will see the one below or very similar

“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading….. 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”.

So the track record isn’t proven in the real world of trading. Iis simply a product of back testing and the back testing is conducted in such a way that the robot is unlikely EVER to make any money in the real world.

A track record that is done in this way gives you everything that happened and of course in any area of business or life, if we already knew what happened, we could make our life’s much better and become much richer but this is not the real world.

we have to live going forward, not knowing what happened and this makes life and of course currency trading a little more difficult.

What normally happens is a segment of data is tested with some parameters or rules and these are bent to fit the data and show a profit. Take any portion of data you like, over weeks, months or years and you will never have prices repeat in the same manner of the test again.

The Concept of Curve Fitting

It’s a bit like getting a gun putting a blindfold on and shooting wildly at a door or wall and then afterwards, drawing a chalk circle around each one to make it look like a bulls-eye!

This is the concept of curve fitting and this why any forex robot with a back tested track record, needs to be treated with caution and discarded.

A simulation is no proof of profit at all as it’s not real. Look at it this way:

Someone comes to you and says – I will teach you to play Tennis but I have never played tennis in my life.

What would you say to him?

Well I would say no and you probably would to, as you would think what can he teach me?

It’s the same with a mechanical forex trading system – the aim is to make money that’s real money you can spend NOT paper money which you can’t.

The forex robot is one of the most popular options for novice traders and in most cases it’s a dumb choice but they buy them in there thousands.

Many vendors know that most traders won’t question or see the disclaimer and they simply use hyped up over the top advertising copy to sell the system

With forex robots it should be common sense no one is going to sell you a system for a few hundred dollars to make $100,000 income ( actually saw one saying this) its obviously not true.

Furthermore, if most of the track records were as good as the vendor claims, why do they sell it? They could make themselves millionaires and not bother with a few hundred bucks per sale.

If you want to make money in forex trading you can but you are unlikely to do it with a system that has never passed the acid test of making real dollars in a real time scenario.

So treat these mechanical forex robots with caution and remember, if it looks to good to be true it probably is and is a reflection of curve fitting data.

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This article is all about forex trading for beginners and facts you need to know before you start trading. You can make a lot of money but keep in mind most traders lose but by being aware of these facts and getting the right forex education, you can win…

Let’s look at our list of key facts for forex traders for beginners.

1. Forex Robots are NOT a Route to Success

More novices buy a robot and think it will give them riches with no effort and they end up disappointed – Why? Because most have never even been traded and present worthless paper simulations which mean nothing in the real world. There not real profits so avoid them at all costs.

2. Forex Day Trading Doesn’t Work

It’s obvious that you can’t tell what countless millions of traders, will do in short time spans. It’s a good story and vendors know this but like the robots they only have paper simulations.

3. Anyone Can learn to Succeed

This the good news! Forex trading is a learned skill and if you get the right forex education, you can win.

4. You Need to Have Confidence and Discipline

This means accepting responsibility and learning the right information. Only then will you have the confidence to trade with discipline. So by all means get education from other – but success rests on your shoulders.

5. Big Forex Trends are Always Present

They last for weeks, months or years and if you use a long term forex trend following strategy, you can make huge gains.

6. Leverage is an Advantage and Disadvantage

Forex brokers will give you 200:1 as standard and most traders use it all. This is a mistake, over leverage simply wipes out more traders than any other reason. 10 – 20: 1 is plenty for most traders.

7. Markets Don’t Move to Science

You will read a lot about how they do and how you can follow a system that predicts and win, no you can’t. Markets don’t move to science, they are simply an odds based game and you need to trade the odds to win.

8. You are Going to Face Periods of Losses

All the best traders do and it’s how you handle them that will determine your trading destiny. Make sure you have strict money management and the confidence and discipline, to ride these periods out.

9. You Don’t Need to be Clever or Work Hard

It’s a fact that a simple trading strategy can be developed by anyone and you can make a lot of money with it. A few weeks to learn and about 30 minutes a day is all you need – if you get the right education. No other business, gives you such great rewards for your effort. You get rewarded for being right, not effort in forex trading and that means working smart NOT hard.

10. Ignore the Majority View and You Will be Successful

Forex trading success is all about ploughing your own path and ignoring the frequent myths you see online and also be prepared to not run with the majority – the majority of course lose, go your own path.

You Can Achieve What You Want

Want a good second income or even a life changing one? Well the opportunity is there for you and it’s up to you what you achieve. Forex trading for beginners, sometimes seems daunting – but if you have read the above, you know what to do and can get on the road to financial success.

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Forex Robots or automatic forex trading software are in short a fully automated system that will trade the forex for you but will not commit any trades based on human emotions. This is extremely important as human emotion is the number one reason for incorrect trades because inexperienced traders will trade on “hunches” which as a professional trader is the number one of all mistakes on the financial markets.

Basically forex robots will do all the trading for you, breaking down and analyzing data and doing enough work in a few seconds that the human brain will take hours to work out.
Basically they are so programmed that they will not make mistakes but just trade sometimes for minimal profits but with lots of them. They will know when a trade will not make any money and ignore it and move on to the next one.

The two most popular systems which are the forex autopilot system and forex killer will use an electronic memory to remember all of the intricate details of forex trades. All you will need to do is initialize the system giving your priorities and that is all.
The best part of all this is that forex killer and forex autopilot both come with full 24/7 support for any of your queries.

Once the software is set up the forex robots will do all of the hard work for you and make all of the informed and justified decisions that will make you the money.
The best part is that forex robots will not make mistakes that humans can make and will make money all the time they are running.

If you want to learn more about Forex Robots, look at the review of the 2 best programs by Clicking Here!