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!
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's and a successful FREE Forex Robot and an exclusive risk free Forex trading Course visit our website.
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!
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's and a successful FREE Forex Robot and an exclusive risk free Forex trading Course visit our website.
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