Forex Robots - Test Before You Buy

Not a week passed without a new Forex robot being launched to this hot market. Sellers of these new automatic trading systems employ marketers to pitch their new product as though they are a revolutionary new idea. Apart from the professional looking website front end, these marketers will employ a range of sales techniques to capture the interest of prospective buyers. These include, limited time offers, money back guarantees, limited copies, over tweaked back testing results and testimonials. What makes matters worse, is these sellers often mobilize an army of affiliate promoters who send out exactly the same pre launch material to anyone unlucky enough to be on their mailing lists.

I see many first time entrants into the Forex market seduced by these often dubious techniques and end up being out of pocket and disappointed with the results. The fact is there is really nothing new or revolutionary about most of these new Forex robots. There are only so many trading strategies that an automatic trading machine can use. The other fact is that there is no miracle money making Forex robot out there.

The sad lesson that most Forex traders need to know is that there is no quick and easy way to make money using a Forex tool like a Forex robots, as the sellers suggest. A Forex robot should only be used as tool to try and balance the odds of making more gains that loss. It is well known that full time professional traders are happy when that can stack the odds slightly in their favour over an extended period. With the large sums that they trade this will earn them a very good living. Therefore be cautious of Forex robot sellers who claim win to loss ratio's in the 90% range over a long period of time.

The biggest factor to watch out for is sellers who try and bolster their profit claims by only showing back tested results. Back testing is a notoriously unreliable way of proving the money making capabilities of a Forex Robot. Developers often tweak and optimize the parameters on back testing simulation to produce the results that they think will sell their Robot by trying to eliminate all losses over the period of a simulated back test. The norm tends to be that as soon as these robots are traded in real time they produce nothing like the back tested results.
The only reliable way to tell if a Forex Expert Advisor will perform in real time is to test it in real time. Forex robots should be testing in real time over a few months, to tell if it has value. Unfortunately in the rush to get out their newest product, Forex Robot sellers don't do the necessary real time testing.

If you would like t take the plunge into the world of robotic Forex Trading but want to test them first you have two choices. You can test your Forex Robot on a demo account before trading live. The other option if, you are wise and have the patience, is to keep track of a Forex Robot testing site like the one below, and check how a number of Forex Robots are performing against each other in real time.