Automatic trading software is seen by many as a great way to trade forex markets. It requires no previous experience, is very time efficient and the good ones can build long term. How do you choose the ones that make money let's find out...
The first point to make is that most of the automatic forex trading software on the net simply won't make you money, if you think you are going to get rich for the price of a night out your mistaken.
Forex trading is not east that's why 95% of traders lose money and while automatic trading software can work you need to be very careful in how you choose one and this is what were going to look at now
First - if you see great advertising copy which looks to good to true it probably is and chances are you will also see the warning below NEVER consider software with this on it here it is:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
These track records are not worth the paper their written on - there made up knowing the closing data and that's easy.
I made the mistake 20 years ago of buying software that claimed 100,000 in profits quickly and bought it for under $100.00 -, now looking back I found the old sales copy (which was great) but also the disclaimer but of course being new to the industry and naïve I bought it without considering that it was so cheap and hadn't been traded.
Huge numbers of traders make this mistake and it is guaranteed to lose you money so beware of the disclaimer.
Just think to yourself - if the vendor hasn't had the courage to trade his own software why should you and why if its that good are you being told about it and offered it so cheap? You know the answer now!
What you need to do is look around for software which has either been independently tracked by third party or has been traded for real with an audited track record and that means broker account statements
These software packages will tend to be in the $1 - 10,000 + range and many are well capable of producing more than there cost - but again be careful, only buy ones you understand the logic of and you have confidence to follow.
If you don't have confidence - you won't have the discipline to stick with them through losing periods and will throw in the towel when you hit a few losses. Keep in mind if you don't have the discipline you may as well not have bothered buying one.
Automatic forex trading systems are all the rage today but stop to think before you buy and do your homework and make sure you find one that's tested, you have confidence in and can follow with discipline - if you do that you have a good chance of making some great forex profits.
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