Enclosed you will find a simple point to check which will help you avoid the vast majority of automated Forex trading systems which lose money. Most traders don’t look at this key point and end up losing their money, let’s take a look at it…
The key point to look for with automated Forex trading systems is:
Is the track record real money or just a simulated back test on paper?
Now you would have thought that if you see a record claiming profits it would be real money in the market but go to the bottom of most of the systems sold online and you will see the words “simulated in Hindsight” and “hypothetical” in the disclaimer.
Now it’s pretty obvious anyone can make a track record look good, when they have all the facts to hand, anyone can make money if they have tomorrows closing price today but that’s not real life. Many of the Forex trading systems have track records that are better than the world’s top fund managers and you can buy them for $100 or so!
If it looks to good to be true it is and you don’t get financial freedom for $100.00.
Most vendors simply bend there system rules to the data to show a profit backwards and of course, when the user trades forwards it’s a lot harder and you cant bend the rules and the trader swiftly loses his money.
If you want to use a Forex trading system make sure it has a track record of real gains.
When you do find a trading system you then need to check the following
1. Check the logic and make sue you agree with it and have confidence in it so you can follow your system with discipline.
2. Check the track record and assume you started trading on the worst day and see how big the peak to valley drawdown is and how long it takes to make new peak in equity. Ask yourself can I stand that loss?
3. How long does the system take to operate? Make sure you have the time and you can execute the trading signals as the vendor recommends
4. Look for unlimited support and a good way to check how good it is – is simply to ask some question before you buy and see how quick the response is and how detailed.
Buying automated Forex trading systems is really common sense and you need to cut through the hype, to get rid of the junk ones.
There are some good solid trading systems out there though with real track records and if find the right one and incorporate it in your Forex trading strategy you will enhance your long term profitability.