There's a lot of conversation about Forex Robots lately and the question on everyone's mind is - do Forex Robots produce or is it all just a great big scam to take your money? Inside this article we examine various facts around Forex Robots to see if we can answer this burning question.
When looking at back testing and forward testing results of some of the prevalent Forex Robots, there is no doubt that these systems have a very superior success rate of winning trades. A large majority of these systems attain success rates of more than 80% winning trades and in selected cases even as lofty as 95%. While these values sound very encouraging, it is crucial to understand how such high success rates can be achieved and what the risks are of using these systems.
When comparing Forex Robots, one of the main aspects to consider is money management. What type of stop loss strategy does the system use ? What is the greatest drawdown that this system experienced in it's history ? One of the top selling systems uses a fixed 250 pip stop loss strategy, while the most popular system of all doesn't integrate a stop loss at all. Some systems contain a very high- level percentage of winning trades, but also have sizable drawdowns of more 30% at times, so the chance of losing a lot of your inveatment in one losing trade is elevated. My ideal Forex Trading Robot is one that has a percentage of winning trades over 70%, with a maximum historical drawdown of fewer than 20% and a relatively conservative stop loss strategy that protects your money.
In conclusion - Forex Robots without a doubt work and they can generate you a lot of money, but make sure that you pick your product carefully and understand the risks involved.
No comments:
Post a Comment