Forex Trading Robots | Articles-General

Thanks for the email. Glad you're enjoying the videos.

My email inbox is flooded lately with these advertisements for forex robots. I've never bought one so can't really comment on individual products.

However my general thoughts on these type of products are that they are total rubbish. It's really simple to produce an algorithm based on past data that demonstrates massive profits. The problem though is that these things just never work in the future. The formulas are curve fit to the data, so unless you can go back in time to trade the period of time used in the testing and design of the product, don't bother.

I am led to believe that a large part of the trading done by banks & institutions is automated. However it works because it deals with very small edges, with very small commission or spread costs, and very large sums of money. This stuff just doesn't apply to traders at the retail level.

Retail traders who have proven success with systems trading, generally have to develop a whole diversified range of systems that work across different markets and timeframes. And then they have to work at continually evaluating their systems, to remove what's no longer working and replace it with something else that is in sync with the current market.

The fact is that the nature of market movement is one of constant change. Buying one forex robot system, designed to work in one very specific type of market, will not guarantee success.

As I said, I've never bought one of these products, so maybe I've got it wrong and maybe they do work. I doubt it though. These products for me come under the banner of 'if it sounds too good to be true, then it probably is not true'.

Seriously, if these things work, why would these internet marketers be selling the thing for anywhere from $67 to a couple of hundred dollars. Banks and institutions would gladly lease these programs for tens of thousands per month, if it actually produced profits.

My thoughts -it's a scam. If you do decide to trial it, make sure it has a refund policy (with no strings attached) that is backed up by Clickbank or PayPal or one of the other payment processors who insist on a refund policy.

By the way, typically these product sales pages will have a link that says 'Affiliates'. You can often dig back through these pages to find out a little more about these people and the other types of products they sell. Typically they're internet marketers. They're not traders. They're just selling dreams to desperate consumers.

Cheers,
Lance.