An Unbiased Review of Automated Forex Trading Robots
I want to give you the unbiased truth about a subject that seems to take up all the headlines in forex trading: Automated forex trading robots. If you’ve been on a forex forum, you’ve probably had a hard time finding a thread that didn’t involve somebody creating a forex trading robot.
The knee jerk reaction from most new traders when they hear about automated forex trading robots, they instantly think “wow, I just found the holy grail”. I don’t criticize them for that. Goodness knows, that’s how I felt when I first heard about them when I was a new trader. Who wouldn’t just love to turn on a machine that will trade for you and you’ll never have to get involved in the trade, and you’ll make lots of money?
The brutal and unbiased truth is that you are going to have a heck of a time finding any forex traders who have made money with these things in the long term. They may have an occasional profitable week, but in the long run, they are losing money.
There is a very simple reason for this. You can’t program the markets. When a new trading day arises, you have to be prepared for what’s going to come. There is no day that’s going to be the same as the previous day.
That’s the biggest problem about trading on autopilot. A piece of software is not going to react to the changes.
Think about all the news that comes out in a day. Do you truthfully believe an automated forex trading robot is going to have the capacity to grasp the intricacies of that news.
Don’t be afraid to go old-school. The less gimmicks you have, the better off you are going to be.