|
Forex Trading Center
Dedicated to Forex Traders this site contains trade tips, Trading articles, Trading tools, and Forex School.
Read full post here. (c)
Forex Trading School
Forex Trading System A lot has been said about Forex Trading systems. They are said to be full of mistakes and cause a major loss of money, but in the bottom line, these trading ...
Read full post here. (c)
Automated Forex Trading System Robots - Why Don't They Work?
There is a new automated Forex trading system coming out almost every week now, it seems. They all show great results on paper but when it comes to live testing the story can be very different, as most of us know from bitter experience. So why does the dream turn to dust? Does the fault lie entirely with the user and the settings that they chose? Were the results faked? Or is there some obscure law of physics that says that as soon as a system is automated, the market will alter its course to stop it working? Sounds crazy I know but I've wondered about that last one sometimes and maybe you have too! I don't think it's any of those reasons, in fact. I don't think it's entirely down to the user; I don't think the screenshots were faked, except perhaps in 1% of cases; and I don't think someone up there is against us. I may be blasted for this but here's what I think really happens ... The way a Forex robot tends to come into being is this: traders take a system that has been working for them (or think up a new one and backtest it), pay a programmer to automate it, and then to cover the cost of the programming and hopefully make a lot more besides, they sell it to anyone willing to pay. The crunch comes in that first step. If a system has been working for the developer for a good long time, fine. But usually they act much too fast. They are relying to a greater or lesser extent on backtests. They know that new robots sell, so they can easily cover their investment cost on the automation, so there is really no risk in them hiring a programmer the minute they think up something that backtests pretty well. So they go ahead and create a robot. Having done that, they want to be sure it will sell. They might do a little live testing, but that's risky, isn't it! It might make a loss. They won't want to lie about the results so it might be better not to run it live, but release it to the market right away. People are credulous and far too many of them will buy on the basis of backtesting alone. Quick! the developer thinks, Let's release it now while it still looks like it works! So what's wrong with backtesting? Nothing, if you believe that future results will mirror past results. But hey, isn't that the first thing they tell you in the small print on all investment documents? "Past results are not an indicator of future performance ..." Doesn't it go something like that? And doesn't that make you think twice about the credibility of automated Forex trading system backtests? If not, consider this. You know that the odds of red winning at roulette are less than 50%, right? The zero makes it less. I think it's about 48.5%. But distribution patterns mean that if you looked at a couple of hundred spins you would probably not get exactly that many reds. You might get 52% reds for example. So what if you did that, looked at the results and said, Wow, 52% red in backtests! Cool, let's develop a robot that always bets on red ... It would lose. Sure the Forex market is a little more complex than a roulette wheel, but I believe that's basically what developers are doing when they build a robot based on backtests. And often, I think that is why they don't work. I'm not saying don't use robots, not at all. A Forex robot can be a wonderful tool. I'm just saying please pay attention to how they have been tested. Don't buy the latest robot the minute it comes out. Wait a couple of months, watch the forums and see how real users like you get along with any new automated Forex trading system before you push your money into the developer's hot little hands. Jason Cline writes on automated forex trading system software and the forex market for several websites. See what he thinks of FAP Turbo in his FAP Turbo review .
NAVIGATION
What are Your Options Regarding Forex Options Brokers?
Forex Vs Stocks
Forex Scams - How to Spot Them A Mile Away
Forex Brotherhood Review
Best Forex Software For At-Home Traders
Learning to Trade Forex Like the Pros
Online Forex Trading
Do You Need a Forex Training Course - Currency Trading Program?
FAPS - Forex Autopilot System - Is it Really the Best Forex Software?
How to Trade Forex? Know These Facts to Get Started in Currency Trading
The Forex Funnel - Best Trading System of '08!
A Guide To Forex
Automatic Forex Trading - How to Make Consistent Trading Profits
Forex Brokers - Finding the Right Broker
Trading With a Forex Robot - Can You Make Money?
Forex Trading Signal Software
Tips For Successful Forex Trading
Seven Ways Forex Funnel Can Help You
Automatic Forex Trading
Forex Trading Tips - Are You Making These 3 Common Mistakes
Five Simple Steps That Will Get You Started Trading Online Forex
Forex Review of the Best Currency Training Classes on the Market Today
Seven Ways Forex Funnel Can Help You
Why Trading Forex Makes You Rich
Forex Trading - How to Read Forex Quotes
Profitable Tips For Trading the Forex Market
Online Trading Forex- Which Of These 3 Mistakes Do You Make?
Forex Secrets Exposed
Forex Global Trading
A Forex Education Can Propel You to Rapid Wealth Creation If You're Dedicated and Disciplined
Scammers in Forex - Types of Scams and Ways to Avoid
5 Ways to Understand Forex Options
Forex Trading Signals - The Easiest Way to Profit
Forex Trading System - What to Know
Forex AutoMoney Review - Is This System a Scam?
Forex Trading Program - Is This the Key How to Trade Forex Without Experience?
Online Forex Trading Software Summary of Products and Services
Forex Trading Machine, Is It For Real?
Why Forex Boomerang is the Real Deal
Currency Trading - Are You Into Forex Day Trading?
Forex Money Management Systems
FAP Turbo Forex Trading Robot - Finally Something That Works!
Learning Forex
Forex Reviews - Which Are the Best Forex Trading Systems?
Forex Day Trading System Explained
How to Trade With Forex - Tips in Starting Forex Trading
Forex Trading Training- Rules For Placing Orders
Automated Forex Software vs Forex Trading
Best Forex Strategies and Trading Courses
Automated Forex Trading - What's in it For You?
Forex Market Overview
Forex Autopilot System - Not the Magic Robot They Say
Automated Robot Brings Forex Day Trading Currency Markets to Its Knees
Automated Forex Trading Expert Advisor - Forex Tracer Review
Forex Ambush 2.0 Review - Watch Your Signals
5 Profitable Reasons to Take Advantage of Online Forex Trading
Forex Power Strategy Review - One of the Best FX Courses Dealing With Risk and Money Management
Forex Trading Business - Can You Win Advantages and Pitfalls You Need to Be Aware Of
Test Trading With Forex
An Ideal Forex Trading System Exclusively For Novices
Forex Robot Software Taking Over the World
Here is Some Real Forex Trading Education - You Will Probably Fail
10 Frequently Asked Questions About the Forex Autopilot System
Learn Forex Trading Online - A Guide To Reading Forex Quotes
Which Forex Strategies Are the Best at Producing Sustainable Consistent Results?
Learn Forex Trading
Bill Poulos's Forex Profit Accelerator - Is it Worth It's Price Tag?
The Forex Tracer and FAPS
Analyzing the Forex Killer
Maximize Earnings With a Forex Trading Signals Alert System Strategy
Tips For Successful Forex Trading
Advantages of Automated Forex Trading Software
The Secret Forex Code Review
Advantages of Forex Trading - 3 Reasons
Is Forex a Scam? The Shocking Truth Will Surprise You
Forex Day Trading Secrets For Success
Learning to Trade Forex Like the Pros
Automatic Forex System - The Best Option For Consistent Profits
How to Become a Forex Trading Machine Racking Up the Big Bucks
Forex Robots - Have Track Records Better Than the Best Fund Managers - They Always Lose!
Choose A Platform That Is Better Than PR8 Forex Platform
A Forex Trading System is a Key Tool to Maintain Profitable Trades in the Currency Markets
How Can I Make Money Trading Forex? An Inside Look at Forex Trading
Practicing in the Forex Market
Forex - Are the Robots Taking Over Forex?
Avoiding Common Pitfalls in A Forex Trading Strategy
Online Forex Trading Software Summary of Products and Services
Forex Funnel - The Secret to Finding Riches in Today's World
Trading Forex - Buying and Selling Round Numbers
6 Ways to Estimate the Value of Forex Options
Forex Trading System - What to Know
Automatic Forex Trading
Making The Automated Forex Trading System Work For You
Forex - The Beginner's Guide
The Advantages and Disadvantages of Using Automatic Forex Trading Robots
Automated Forex News - Market News vs Trading Signals
Forex Terminator Review - Is This Forex Trading System For Real?
Forex Trading Indicators - Using Forex Trading Indicators For Big Gains
Top 6 Things to Look For in a Forex System
Forex Brotherhood Review
|
