It's a great idea, just follow a mechanical forex trading system on autopilot and make huge gains - but the reality is for the vast majority of traders is an account wipe out and there are 2 main reasons why...
The first reason is obvious.
1. The Forex Robot has NEVER been traded for Real!
You often see a system advertised for $100 and the track record would make the worlds top traders envious - but the catch is the track record does not represent real trading or real dollars!
All the vendor has done is simulate a paper track record knowing all the highs lows and closes and made his system profitable knowing the history. Traders buying the system never think about how ridiculous this is - buying a made up track record and thinking it will repeat in real life - dream on! If only forex trading were that simple.
The systems collapse in real time as not two pieces of data repeat again and the system the trader bent to the data, to make a profit in hindsight, collapses and destroys the traders account.
These automated forex trading programs, with simulated track records are all over the net and they will all lose you money. If you thought about it - if the vendor is so confident it will work, why doesn't he trade it?
Well now you know why. Avoid any system which has these words in the small print - simulated, back test and in hindsight.
If you want to trade an automated Forex trading system get one with a real track record which has proven itself - check out a great free one, the 4 Week Rule which we have covered in our other articles.
Now having a proven system is actually on its own not enough to make money, you need to learn apply it.
2. Applying the System with Discipline
Many traders have good systems, yet can't apply them. As soon as they hit some losses, the discipline to apply the system breaks down and if you don't have the discipline to apply the system - you don't have one.
What you need to do is not just follow a system blindly, make sure you know the logic and are confident in it, as confidence gives you discipline. Never follow a system without knowing how and why it works.
Next you need to get an idea of the losses the system takes and don't just look for the average loss. Assume you joined at the worst possible time and measure drawdown length and duration. That is what you need to be prepared for in the future, so always assume your worst drawdown is ahead of
All systems will suffer weeks or even months of losses.
This doesn't mean they won't win - many do and make huge gains but you must have the discipline to ride out these periods of losses and stay on course.
So there you have it - get a proven system not a simulation, learn the logic and trade with discipline and big forex profits on autopilot can be yours!
FREE! Successful Forex Robot! + Much More For more essential forex trading advice and a FREE Succesful Forex Robot and an exclusive RISK FREE Forex trading Course visit our website. |
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