Do Forex Trading Robots Work?

Mon, 15 Dec 2008 22:37:31 +0000

Considering the incredible amount of capital that is exchanged on Forex, it is not too difficult to understand why there is such an incredible number of guides, methods, and tool available to help traders navigate this financial jungle. For those who know a little about Forex, you will have most certainly heard of what has come to be known as “Forex Robots.”

What are they and do they really work? Well, the people who invented them insist that these complicated systems can interpret market trends and act based on that analysis to allow the client profit with no effort at all. There are even organizations that insist that their robot can accurately make predictions regarding a trader’s ideal buy and sell points, and not just predict, but actually act on that prediction. When it comes down to it, these robots claim to offer risk-fee and effortless profit.

Sounds good, but how exactly can they determine the right buy/sell points? The system is actually quite simple. The Forex robot keeps track of currency price fluctuations, and based on preset on/off points, or predetermined market conditions, the robot will make immediate trades. After a preset profit has been earned, the robot will be programmed to sell. It’s basically and rule system or strategy that runs on cruise control. Based on the many advertisements, these robot’s can minimize risk and make significant profits.

Is this too good to be true? I wish I could lie, but yes, it is too good to be true. If these systems really worked as well as advertised, there wouldn’t be a person in the business without an account. News of success travels rapidly, and the experts know all about these robots. They know their batting averages, and based on that, have not used them. The market is too complicated for these systems. When I say complicated, that doesn’t necessarily mean mathematically complicated. Market fluctuations have much to do with feelings, panic, and excitement. Sometimes numbers just aren’t enough.

With that said, Forex robots do serve an important rule. They can help us make decisions, and for many, help eliminate much risk. For someone just starting out, these robots are a lifesaver. They can easily outperform a newbie.

Nevertheless, for experienced traders, the robots cannot be expected to execute their analysis profitably. Use them for their counsel, but do not let them “push the button.” They are tools that can supplement your efforts. That is all. Banks and other big players, for instance, all have complex systems that are based on similar technology to these robots, although much more expensive and advanced.

Even with this tool, inexperienced traders must do research and learn the game. Without doing so, they will not even be able to understand which robot works best for their overall game plan. It is also important to talk and ask more experienced traders questions. With so much money involved, and the many accessories available, there are scams out there. You have to be careful not to buy a bogus robot.

No matter what you end up purchasing, just remember to keep your expectations low and your head clear. These tools are only here to help, and nothing can replace your judgment and experience. Good luck.

Do Forex Trading Robots Work? is a post from: Forex Trading Reviews

Trading From Home Review

Tue, 09 Dec 2008 04:54:40 +0000

A Forex trading robot specifically designed for people who want to “work at home” which is always a very appealing idea: skip the ugly morning commute and work in your pajamas on your laptop.

Trading From Home Overview | Included in Package | Trading From Home Consumer Feedback | Trading From Home Review | Trading From Home Details

Trading From Home Overview

Trading From Home is a Forex trading robot specifically being marketed to people who’d like to work from home. According to their website, you don’t need any special computer skills, let alone any knowledge of currency or stock trading.

All you need to do it point and click, “decide how much money you’d like to make” and:

“You can’t help but profit over the course of any given period!”

Sounds pretty good alright, let’s explore a little deeper and see if it’s marketing and hype or a legitimate way to earn a living from the comfort of your couch.

You can check out the Official Website >> or keep reading below for our full Trading from Home review.

Included in Trading From Home Package

The Product contains:

Forex Trading Robot
Access to the Trading From Home Members area and its additional bonuses and premiums – Content updated weekly
A free consultation with a Forex success advisor
Free Live support for both technical and business issues

Bonuses:

“money bible” describing 8 other ways to make money from home

(why would you need this bonus if you are going to easily make 6 figures working only 60 minutes a day – maybe they aren’t so confident in their system?)

Reports from Trading From Home Customers

Due to the ambiguous name of this product, it was impossible to track down any unbiased user reviews.

Trading From Home Review

After reading the Trading From Home website, I found myself being somewhat impressed that at least they had a unique approach to marketing their product by aiming towards the “work at home” group rather than the standard “money for nothing” mindset of most Forex products on the market.

In the end though, the website is more about marketing than actually providing any hope that you’ll actually learn to be a successful Forex currency trader.

Statement like this I find just downright scary, “You can’t help but profit over the course of any given period!” Please don’t believe anyone that says something like that to you.

Other red flags include:

testimonials from obviously not real people
graphs and charts that could easily be faked
no mentions of the risks potential losses of Forex trading
no mentions of any skill or real savvy required to be a profitable trader

Some Unintentional Humor from the Sales Page

“Video walkthroughs that cover every aspect of making a million dollars as a Forex Home Trader. (Value: $395)”

Shouldn’t videos that show you how to make $1,000,000 be more valuable than $395?

Backtesting Report Reveals a Lot

In general the backtesting reports found on Forex robot sales pages are worthless because they can be easily fabricated, but the report for Trading From Home was interesting a couple ways.

It starts out with an account of $25,000 US, so that it worth noting, that the creators of the system are suggesting an initial bankroll of $25k, which is substantial for most people.

But it gets better, after only 10 days of trading with this robot, the account was down to only $13K. This means that if your account only had 10k to start, you would have been wiped out!

Now the backtest ends with $440k made from the $25k initial deposit, but we can learn two things here:

Even in successful trading systems, significant drawdowns (losses) do happen. If your account went from $25k to $13K in 10 days, would you have been able to stick with it, continue to trade? If not you wouldn’t have realized the huge potential gains.
It takes a decent sized bankroll to trade like a professional. Not having enough of an initial deposit amount makes any type of trading far more risky, since one bad trade, which happens to the best of them, can wipe you out, even if you have a profitable system.

The bottom line with this course is that it is designed to make a lot of money, but not for you, for the people selling it. Now, I’m not saying that their robot doesn’t work, it make work and make a lot of money, but I sure have some BIG FAT doubts based on the information presented on the website.

Forex trading is a business, and to be successful you’ll need to study hard, practice a lot, go through some very large emotional and financial ups and downs. Then you may be able to use a robot or signal system like “Trading from Home” to increase your profits.

Meets Stated Objective

Doubtful that they will get you to making 6 figures in an hour a day with just this system.

Customer Support

Probably okay, no complaints were found online.

Value for Money

At $197 it may provide that much value for an experienced trader, for a beginner, probably not.

Sets Realistic Expectations

Fails miserably.

Overall Rating

My overall impression of Trading From Home is that it is designed as a marketing gimmick to entice people who hate their jobs into believing that they can make easy money without the hassle of having a boss or driving to work in traffic everyday.

It is a great concept, but I come from the school that “if it sounds too good to be true, then it probably is.” I think you can make a great living from home (in fact I do it!) but it takes dedication to get good at something, not believe in a magic robot.

You’d be better off spending your money on a real Forex training course.

Read More at Trading From Home Official Website >>

Trading From Home Details

Author: Michael Chase & Steven Phillips

Package: Forex Robot, Access to Member Area, Consultation with Pro Trader

Price: $197.00

Return Policy: “2-month ‘make money or its free’ guarantee”

Trading From Home Review is a post from: Forex Trading Reviews

Forex Trading Reviews » Forex Robots

Do Forex Trading Robots Work?

Trading From Home Review

Trading From Home Review

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