Are Forex Robots Really Good?

In the last few years, automated trading systems have come off age

. Automated trading is the rage now! Especially in forex trading, development of the MetaTrader MT 4 platform has revolutionized everything. Automated forex trading system also known as Expert Advisors are now very easy to develop. These expert advisors are also popularly known as Forex Robots.

Any mechanical trading system can now be automated. Automation of trading systems have made trading easy for many people who had never traded before! The automted trading system or what you call the Expert Advisor trades automatically opening the trade when the conditions are right and closing when the profit targets are met or the market is showing too much volatility.

Previously forex trading used to be a laborious excercise with the trader all the time glued to the computer screen. Not any more! Installing an Expert Advisor on MT 4 allows you to trade forex on autopilot. Every month, a new forex robot is hitting the market with tall claims.

But the problem is most of the results that the developers show are based on backtesting. Backtesting means historical data has been used to test the performance of the forex robot. Good backtesting results can be easily achieved by curve fitting. Markets are organic beings always changing and evolving. Past is no guarantee of the future. Future is always unknown. No one could predict the stock market crash of 2008 and the ensuing global financial crisis.

This is the major problem with these Expert Advisors or automated trading systems. Most are simply two to three indicators hooked together to give a buy or sell signal. With this in mind, FXCM and Boston Technologies recently announced the first ever Forex Robot World Cup. All forex robot developers have been invited to take part in this competition. A huge cash prize of $100,000 will be given to the winner of this competition.

Many developers are taking part in this competition. Their robots will be tested under real live challenging conditions. The competition is ongoing. When the winners are going to be announced, this will be the first time that you can look at a list of forex robots and their live testing results done by a third party.

Over the next few years, better and better automated trading systems are going to hit the market. More and more people will be using these automated trading system to make money on autopilot while they sleep!

by: Ahmad Hassam

POST COMMENT

4 Steps Manifest Money Fast 500 Capacity Oak Black Jack Table Tray Review 5 Ways To Save Money on Brewing Your Own Beer Are Forex Robots Really Good? How Wearing A T-shirt Can Make You Money Prepaid Visa Credit Cards - A Closer Look Dow Futures Secret That Can Make Incredible Profits Give Work Its Proper Place The Currency Market And The Bond Market 5 Food Storage Tips That Will Save You Money Make $1m In 2010 With This Forex Robot Trading System! When Property Prices Fall Remortgages And Mortgages Also Fall. Obama: To Make Scholarships Available To Single Mothers