| Most Forex robots are worthless for many | | | | settings, etc. Of course the backtest will be good |
| reasons, but the biggest reason they fail is | | | | if you follow their instructions exactly. However, |
| because they are generally based on poor trading | | | | historical data is no guarantee of future results. |
| methods, or no method at all. Even the best | | | | That means backtesting really doesn't matter, |
| manual trading method in the world will generally | | | | because you can only trade the future, not the |
| fail when it is turned into a robot or automated | | | | past. So honestly, does backtesting really matter |
| trading system. Why? | | | | at all? I say no. |
| Because most robots are programmed by | | | | As for the live - forward test - results, I agree |
| computer programmers that don't have a clue on | | | | with that. The live forward testing IS indicative of |
| how to really trade the Forex market. Add to | | | | the robots performance. However, I wouldn't |
| that the problem that fundamentals and intuition | | | | believe the robot sales page either. It is too easy |
| cannot be programmed into a computer, and you | | | | to go into the broker report file and change |
| have a recipe for failure. | | | | numbers around to make it show whatever you |
| All Forex robots and automated trading systems | | | | want. It is basically a simple html file. IF you can |
| have one thing in common. They are reactive, not | | | | find an impartial, objective, ethical website (such |
| predictive. What this means is that they are | | | | as Forex Robot Busters) that provides real |
| programmed purely with past history price data, | | | | forward testing results, then I'd say believe it. If |
| using technical indicators that look at past data. | | | | you find a website that shows 6 out of 8 robots |
| While nobody can see the future, humans have | | | | crushing the Forex market, well, chances are they |
| the capacity to integrate fundamentals, such as | | | | are a scam too. The truth is, most Forex robots |
| financial news or investor sentiment, into their | | | | simply don't do well, and most of them will wipe |
| trading. | | | | out your account balance very quickly. Forward |
| Can purely technical trading be successful and | | | | testing is best done on your own, during your trial |
| profitable? Yes, if the proper technical signals are | | | | refund period, on a demo account. |
| used in the proper way. Most robot programmers | | | | Robot: Look for honest reviews -hard to find |
| don't truly understand how to do that successfully. | | | | these days - and opinions of people who bought it |
| Robot developers create their robots to have an | | | | and used it for a while. |
| AMAZING win ratio (say, 95.6%) to lure people | | | | Ah, now this I agree with completely. But |
| into thinking it is a great system. I mean, if it wins | | | | unfortunately, there are also a lot of sites that |
| that often, it's gotta be good, right? | | | | promote robots that will "seed" their comments |
| Wrong. I'll explain more about that shortly... | | | | or forums. Basically, they will delete any negative |
| How do you determine if a Forex Robot is worth | | | | comments, and only allow (or post themselves) |
| buying? | | | | positive comments. |
| A popular robot creator explains how to | | | | Robot: Make sure that the seller is working with |
| determine if a robot is worth buying using the | | | | clickBank. Never buy from forums members or |
| following criteria. And amazingly, his robot meets | | | | the like. Why ClickBank? ...Because Clickbank got a |
| all those criteria. However, I'm going to alter/add | | | | very good refund policy. Your payment would be |
| some criteria, to make it more realistic, and so | | | | safe if it's done through Clickbank. |
| you can understand what they REALLY should | | | | Yes, Clickbank is very good and reputable, and |
| state: | | | | they process refunds quickly and without hassle. |
| Robot: Look for backtest results on the website | | | | But the real point here is to make sure that any |
| and/or the results of live - forward test - results. | | | | robot you buy has a money back guarantee (with |
| Backtests posted on websites are generally | | | | no restrictions), that is long enough to do proper |
| useless. A robot creator can easily tweak their | | | | testing (at LEAST 60 days), and that has no |
| backtest and robot settings to produce exactly | | | | problems with issuing refunds. Don't buy a robot |
| the result they want to get. Believe me, I've done | | | | direct from a website without making sure they |
| it. The only way backtest results are useful is if | | | | stand by their refund policy. Robots purchased |
| you purchase the robot and perform your own | | | | from Clickbank do, but they aren't the only ones. |
| backtests. Only then will they be unbiased, | | | | Besides all the above, there are specific things |
| un-tweaked, and realistic. Many robot makers also | | | | you really need to look at before you buy a |
| give you a detailed list of instructions to follow | | | | Forex robot. Or ANY trading system or method |
| regarding doing your own backtest. The specific | | | | for that matter. |
| broker data to use, the pair, range, various | | | | |