Forex Robot Software - Are They Just the Latest Internet Investor Scam?

If you have ever tried your hand at investing in the multi-trillion dollar Forex marketplace, when you look at all the variables needed to place reliable and rewarding trades, how many times have you thought to yourself if there was a way of computerising all of these variables, so trading becomes foolproof and rewarding?

Have you also had this thought that if you could get a bunch of software code to place your trades, you could really cut out all the concentration and learning that most people go through to become expert traders?

Well, consider this, if you wanted to become a brain surgeon, do you think that you could short - circuit years of mental and physical training and practice and operate on your best friend tomorrow - perhaps not!

Now, Forex Robots, or Expert Advisors (EA's) do have their place, as long as you have had some instruction in Forex trading, and you have the right mentality to even approach this massively rewarding, but terribly unforgiving, form of investment.

First of all, lets look at what a Forex Robot is, and how it is usually used. One of the most popular trading platforms in use by many of the top Forex Brokers is known as the Meta 4 trading platform. This platform has its own unique software tools that enables clients using that Broker to either create their own 'Expert Advisors' or to buy one of the many available on the Internet, and simply install it on their Meta 4 broker station. They just set it running, and Bingo! They are trading automatically!

The trouble is, you are then totally at the mercy of some remote programmer, who may have been given a good idea by an expert trader to turn into an automated solution, but even then, the expert would have probably used this routine for certain market conditions, and either switched it off and traded manually during difficult market conditions, or just tweaked his parameters as and when necessary.

When you look at the ever-expanding range of Forex Robots appearing on the internet, all making fantastic claims of turning you into a millionaire in under a year, and all costing around $95 for an outright purchase, who do you really think is making all the big money.

I would suspect that the authors of all of these expert advisors are sitting quite pretty, as once your name appears on a 'Forex Interest' list, you will probably get a new promotion every week!

This is not to say that Forex Robots don't have an important part to play in assisting traders to make a little extra income. In fact, there are two types that are usually of great assistance to the average trader, and even 'armchair' Forex investors.

The first type is where they are used to assist traders to extend a particularly trade, as opposed to identifying a good opportunity.

For instance, I use a very good proactive charting system to identify trades, and when I place a trade, to maximise on its success, I will often use a Robot to help me progress the trade. If I enter a particularly good trade, that may go on for hundreds, or even thousands of pips ( I wish), then rather than use a trailing stop, and a fixed 'Take Profit' point, I would rather move my stops manually, and also move up my take profit pointer.

I have a very good EA that I can use that is brilliant at just that sort of constant manipulation, so I don't have to spend days staring at my screen, and possibly losing out right at the crucial time when I just have to sleep!

The second type I find very useful (and usually highly profitable) is a combination of a Forex Robot, in conjunction with a paid subscription for a managed service that will change the parameters as market conditions dictate.

Forex Robots have their place in this lucrative market, but like all tools, they must be used with a little caution. Always try and see if there is an active user group for the Robot you want to play with.
Bear in mind also that there is no real substitute for a bit of hard work and learning techniques to make a really great Forex income.

Try it - and be impressed.

Seed Newsvine

Bookmark this article in your preferred program

Comments

Add Comment

Popular Articles in this cathegory

This article is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.