Forex Robots - a Checklist to Follow to Find the Small Minority That Win
By: Kelly Price
There are lot of forex robots for sale but most will soon wipe your equity out but there is a tiny minority Forex Robots - A Checklist to Follow to Find the Small Minority That Win which win and we will look at a checklist you should follow, to find them and get the right one for you...
Here is your checklist for finding the best forex robots.
1. Get a Real Track Record
Most of the forex trading systems online fail on this basic point - they don't have one! All they have is back tested simulations on data and of course we can all make money doing this. You will normally see the words "simulated", "hypothetical" and in "hindsight". Lets be clear you are buying a trading system on the basis that it will make you money and if has never been traded why would you trust it?
If you pass by the simulated systems you already have got rid of 90% +. When looking for a real time track record two or three years is the minimum period you should consider remember, anyone can fluke a few weeks or a month and this time period means nothing.
2. Risk Tolerance
You will normally find that a system will lose for weeks on end, that's just the way forex trading is so make sure you prepared for this and look at the biggest loss and time to recovery - i.e. if you joined the system on the worst possible day.
3. You Need to Know The Logic
Never by a system which doesn't have the logic disclosed. Ideally, it should tell you the exact rules and parameters used and the logic behind them. This will give you the confidence to keep executing the trading system through periods of losses until you hit a home run.
You need to maintain discipline of execution and make sure the trades are placed exactly as the system dictates. If you can't do this with confidence and discipline you don't have a system.
4. Curve Fitting
The reason most simulated trading systems fail is because they are curve fitted. This means the rules are bent to fit the data. As no two pieces of data ever come around in the same price sequence again the system collapses in real time trading. Even proven systems get curve fitted. The system makes money, so the vendor offers new improved rules but don't fall for this, use the original ones, curve fitting sees systems fail.
5. Best Time Periods
The idea of an automated trading system is to save time and you should really use a swing trading or long term trend following system - never a day trading system. Day trading is based on logic that doesn't work and anyway, you will never find a real track record so steer clear.
Follow the above 5 points and you will find the best forex robots and then you can choose one that fits your risk criteria. Forex robots do work but don't forget they will lose for long periods to so you must have the confidence and the discipline to take these loses, until profits come.
There are some good automated forex trading systems and the above information will help you to find one which will lead you to currency trading success.
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