How many times have you come across a new Forex expert advisor that claims to make you overnight riches within the Forex market. These trading systems are being pumped into the industry at excessive levels and unfortunately they have saturated the market and in turn given the automated Forex trading industry an abysmal reputation.
Most of these Forex Expert advisors have computer software they have programmed within their system which they claim will make you money – however the vast majority of them are based on unsound logic which has no chance of working and producing consistent winning trades.
The major issue concerning these phony expert advisors is the fact that most of them will present you with a hypothetical back test as evidence of the systems money making power. These records are basically made up and simulated to fit the creator’s needs and they prove absolutely nothing. The vendor clearly knows all the opening and closing prices, the exact tops and bottoms, and therefore knowing all these facts he is easily able to simulate a dodgy track record to prove his system is making immense profits. Obviously the main problem is that these records are not real and just a tactic to steal your hard earned money.
Most of these systems are released by those extra savvy marketing gurus, who have only one thing on their mind, SELL SELL SELL, and they don’t care if their product works or if it is actually beneficial, they just want to make that sale. Their sites are fairly easy to spot out, as they will have pictures of tons of cash, Ferrari’s, mansions etc. and also don’t forget about that “ever convincing” backtest record. If you come across an expert advisor vendor who has all of the above elements on his site then you should leave the site immediately, it is 99% likely the trading system is a scam.
So forget those get rich quick methods that don’t work and seek out a Forex expert advisor which has a real track record or something worthwhile to teach you so you can devise your own. Legitimate Forex expert advisor will always show you proof of their results, and yes all of them will incur losing trades, there is no trading system out there that doesn’t ever lose, if you have found one then please let me know. However the best expert advisor will consistently produce a lot more winning trades than losing ones and will have a very low drawdown level, in turn assuring you make some decent long term profits off the market.
When searching for a good Forex expert advisor always look for live forward test statements, these tests are conducted in real market conditions with real money, therefore they actually let you know how the EA will perform in real live market conditions. These tests are probably the closest things to letting you know how profitable the expert advisor is and they should be the basis of your selection criteria when looking for a legitimate expert advisor.
If you do manage to find a mechanical Forex trading system with a real track record over a few years, just check the logic, make sure you understand it and can trade it with discipline through losing periods. Make sure it is suited to your risk and money management levels and do your research before making any final decisions. Also ensure that the vendor provides regular ongoing after sales support, so you know you are in good hands and will be looked after shall you encounter any problems.
Just remember most phony vendors will attempt to fraud you out of your money by hoping you fall for their simulated track records, and then one day get wiped out of your trading account. Don’t fall for their trap, shop around and find a real Forex expert advisor vendor, who provides legitimate live forward test statements, and is well recognized in the industry as a legitimate seller.