You read about it and you are very interested in getting a Forex Robot - a computer program that will trade for you 24 / 5 and will make lots and lots of money for you!
Before you spend your hard earned money, please read below:
Please do not believe in the hype nowadays of Forex Robots or Automated Trading Systems or Expert Advisors (EA's) (software you install on your computer that does Forex trades for you, that can 'sense' whether the market goes up or down, programs that can adapt to new market conditions and makes profitable trades accordingly) which will make you huge amounts of profit.
Nothing can be further from the truth.
Think about it, if these 'robots' were so phenomenal wouldn't every investment firm use them and post an annual return of 128% (which they claim to be) instead of the usual average 16%?
No robot can predict the way the market is going to go, not version 3 or version 4 or version 5 with a gold membership!
The only one that will get richer is the company offering this product!
They do not even make their profits
by trading with their own robot,
but by selling it!
If it really is such a fantastic program, why don't they use it to trade with?
Unfortunately many of the strategies programmed into these trading systems are very risky. I have tested many over the past few years and to tell the truth, there is not even one that I will use to trade my own money with.
There are some systems that will do well for a time, and then suddenly it can empty your account!
Here is a typical example of what I am talking about. This is the graph of a live trading account where the poor guy lost $53,828.67 as at 2009/09/10!
Click on the picture to go to the website where this result was originally published.
I have also found that some of the websites advertising these systems are lying about their products.
Claims made on the Maestro website:
False Claim 1:
What is an Artificial Intelligence Neural Network?
It is the ability of a program not only to look at the current currency combination that it is trading, but also to look at other currency combinations and other factors that may have an impact on the markets. It will then take all this information into consideration and make a decision to trade or not to trade.
Here is an example of what a neural network may look like:
The strategy upon which this EA was based, had nothing to do with Neural Networks.
False Claim 2:
The person selling the new robot, found an EA (Expert Advisor) that was available for free on the internet!
After testing it and realizing that it had some potential, he renamed the old program "Firebird" and gave it a new name "Maestro".
How long does it take to rename a file? Only a few seconds. Certainly not 6 years!
How did I know that it was Firebird and not the other program which I bought?
If you move the mouse arrow over a trade in the Account History (in the Terminal Window of Metatrader), a pop-up will appear showing the name that was programmed into the EA.
They did not even took the effort to change the name programmed into the EA!
False Claim 3:
The advertised success rate of 90% sounds fantastic, but when you look at the money management programmed into the EA, you realize that it just cannot work.
If it trades with a 90% success-rate, it implicates that 9 out of every 10 trades will be successful, and 1 will be a losing trade.
The results from running the Forex Maestro on a demo-trading account over a period of 30 days:
The truth about this EA is:
A huge problem when trading with a robot like this is that you do not know when the robot is going to take a dive and when is a good time to take your profits.
Result: The scammers made money and I lost money and wasted time to test a useless program. I am upset and very frustrated because I paid a lot of money for an EA that is totally unusable.
Here is another example of a free EA that was renamed and sold as a new robot:
The website where I bought it had the most fantastic claims and graphs to proof that this EA is indeed successful:
There were also testimonials on the website which appeared to be trustworthy and not fake.
I ran the advanced (more costly) version of this EA with the default (recommended) settings on a demo-trading account for a couple of weeks with the following result:
It lost more money than it made.
My question is: How is it possible for somebody to get results like those in the graphs above while I cannot get similar results? I used the default (recommended) settings.
The only conclusion I can come to is that I have been scammed again.
The advertisment page of the Quantum EA provides "verified" and "certified" statements about the results of the EA:
You will read at Forexpeacearmy.com that neither the accountant, his firm Hummingbird or the Broker PowerFXTrade exists.
How far are you going to get with a fictitious broker and fictitious statements?
Can you still believe the claims about the results of this EA?
How can people lie so blatantly about their product
and get away with it?
Unfortunately this is the situation we have to cope with in the world of Forex Trading Robots at this time.
Please understand that I am not against automated trading and therefore reject all EA's as being unusable! I am just telling you to be careful when you consider it to buy an EA.
In my opinion:
Be very careful when spending money on EA's or robots!
There are a lot of guys out there who are selling robots for an income. Unfortunately they will scam you out of your money by selling totally useless programs. They are extremely clever in their marketing and will convince you that their robot is the best. Most of these robots will empty your trading account in a short period of time.
The development of Automated Trading Systems or Forex Trading Robots is still in it's baby shoes and there still is a long way to go to get to the stage where we can use them safely and comfortably.
The best way to trade Forex still is to do it either through a professional brokerage company (where professional traders will trade for you = managed accounts) or you can do it yourself!
Note: We are busy working on the development of an automated trading system and have been working on it since 2004. This exercise taught me that programming a successful EA is not an easy task!
If you find a robot that really is good, please send me the info on that robot! We can make the info available to other people and help them this way.
Developing your own Robots (Help available)
Recommended Robots (= robots with some potential)
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
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