There are numerous automated forex trading systems sold online and the vast majority lose. By following the enclosed checklist, you can find the best in simple steps...
1. Has it Been Traded?
This is not as dumb a question as it sounds because most have not been traded real time. You will often see extraordinary track records for 100 dollars or so - but when you check the disclaimer it will say "back tested in hindsight" and "simulated".
Anyone can make a profit knowing the closing prices, so don't be taken in by the hype, look for the proof of a real time track record - if the vendor hasn't got the confidence to trade it, why should you? If you discount simulations, then you have got rid of about 90% of the forex robots and trading systems sold.
These systems with track records promising financial freedom are a joke, as they don't have any real evidence of profits so avoid them or lose.
2. Track Record
Ideally look for a track record of about 2 years or more, in real time and independently audited. This is long enough to judge and will give you an indication of the systems potential.
3. Check Drawdown and recovery time
While those gains may look attractive, give the system another look and assume you joined on the worst possible day. Measure the size of the drawdown and how long it takes to recover - is it to much risk for you? You must be able to take drawdown! All systems have them and you need to ride them out.
4. Confidence and Logic
You will never follow a system unless you have confidence in the logic so you need to make sure you agree with it. Never follow a system where the logic is not disclosed.
5. Operation & Support
How long each day does it take to operate and do you get support? Obvious questions if buying a ready made package. Ask a few questions before buying and check support staff are around to help you if you need it.
OTHER IMPORTANT POINTS!
The automated forex trading software industry has a bad reputation, due to the vendors who say you can make easy profits, with no drawdown. This is not the reality of trading!
A good forex trading system can make money and the best do 30 - 100% consistently, however most will have drawdown periods of - several weeks or more and drawdown around 25 - 50% of equity.
You therefore need to judge them long term and have confidence in them.
Don't fall for hyped copy, look beyond it and follow the checklist above.
Most systems are a waste of money and have no proven value however you will find some forex automated trading systems which can pay for themselves many times over and lead you to currency trading success.
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