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Monday, June 22, 2009

How to Avoid a Forex Robot Scam and Choose the Best Forex Robot

Also known as Expert Advisors (EA), Forex Robot is a piece of software embedded with proven Forex trading strategy. After installing this software on your computer and get connected to your Forex broker, you can perform Forex trading activities from anywhere in the world.

There are 4 criteria most experts used to judge a Forex robot:

1. Successful Back Testing 
What happened in the past doesn't mean it will happen again in the future. While back testing is important, it does not guarantee a successful forward trading. Nonetheless, check this out before proceeding to step two.

2. Forward Live Trading 
This is more important than the first criteria. Live trading is the absolute proof that your robot will make money for you. 100% of robot vendors guarantee successful back testing, but VERY FEW use live trading to back up the claim that their robot is the real deal. Do it with a demo account and get your money back if it doesn't pass this test.

3. Money Management 
The key to successful long term investment in Forex is not how well your robot is performing but how well you manage your money. It is useless to make $2,000 in five minutes and lose it all back (plus $5,000 more) an hour later because you become greedy and decide to take a plunge. A good robot must provide a mechanism that safeguards your money, stopping you from throwing away your hard-earned profits. Sound money management and adequate safeguards is vital to successful long term wealth creation via Forex trading.

4. Low Drawdown 
No robot can bring in the money 100% of the time. Such robot doesn't exist in the real world. All of us who use robots to invest in Forex will experience temporary setbacks.This temporary losing period is called a DRAWDOWN. Good robots will have a brief losing period before driving the investment balance back up. Bad robots will keep your balance at the bottom for a long period of time.

You can judge how risky these automated systems are by looking at their drawdown percentage. Some robots have a 40% or higher drawdown on their reports. With those kinds of odds, you have a better chance of winning at a racetrack.

A good robot should stay below 15% drawdown. With this kind of robot to back you up, it would be extremely difficult to bankrupt your account under any circumstances.

Focus on the above 4 highly important criteria when making a decision to purchase a Forex robot.
Learn how to make a smart comparison before paying for a high-priced robot that can ruin you financially. Visit http://www.decoway.com/forex-robots-review.html

ArticlAlso known as Expert Advisors (EA), Forex Robot is a piece of software embedded with proven Forex trading strategy. After installing this software on your computer and get connected to your Forex broker, you can perform Forex trading activities from anywhere in the world.

There are 4 criteria most experts used to judge a Forex robot:

1. Successful Back Testing 
What happened in the past doesn't mean it will happen again in the future. While back testing is important, it does not guarantee a successful forward trading. Nonetheless, check this out before proceeding to step two.

2. Forward Live Trading 
This is more important than the first criteria. Live trading is the absolute proof that your robot will make money for you. 100% of robot vendors guarantee successful back testing, but VERY FEW use live trading to back up the claim that their robot is the real deal. Do it with a demo account and get your money back if it doesn't pass this test.

3. Money Management 
The key to successful long term investment in Forex is not how well your robot is performing but how well you manage your money. It is useless to make $2,000 in five minutes and lose it all back (plus $5,000 more) an hour later because you become greedy and decide to take a plunge. A good robot must provide a mechanism that safeguards your money, stopping you from throwing away your hard-earned profits. Sound money management and adequate safeguards is vital to successful long term wealth creation via Forex trading.

4. Low Drawdown 
No robot can bring in the money 100% of the time. Such robot doesn't exist in the real world. All of us who use robots to invest in Forex will experience temporary setbacks.This temporary losing period is called a DRAWDOWN. Good robots will have a brief losing period before driving the investment balance back up. Bad robots will keep your balance at the bottom for a long period of time.

You can judge how risky these automated systems are by looking at their drawdown percentage. Some robots have a 40% or higher drawdown on their reports. With those kinds of odds, you have a better chance of winning at a racetrack.

A good robot should stay below 15% drawdown. With this kind of robot to back you up, it would be extremely difficult to bankrupt your account under any circumstances.

Focus on the above 4 highly important criteria when making a decision to purchase a Forex robot.

[expert=James_P._Allene]

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