PostHeaderIcon Forex Auto Trading – Does It Work?


24/12/10 Top 3 Robots Update: #1: Primeval EA +$4017.24 in 59 days = +248% pa Proof

Ever since the first forex trading systems aka “Forex Robots” started appearing on the internet several years ago, people have been asking the question, do these Forex Auto Trading programs really work? Having had some success with automated forex trading systems, the author of this blog would say yes, some DO work.

Having said that however, I would strongly advise against simply going out and buying the first, the cheapest or the most heavily promoted Forex Robot you come across. Expert Advisors, as they are correctly known within the Metatrader software in which they run, are  relatively new, and there are a lot of hastily-thrown-together programs being aggressively marketed by fly-by-night internet marketers, which do NOT work. And you don’t get to test these dodgy programs before you part with your money. In many cases they come with money-back guarantees, however these guarantees are only as good as the people behind the websites. Fortunately, there is at least one good independent forum you can go to, to read reviews on these products, to try and weed out the good from the bad and the ugly in the Forex Robot market.

So there are a handful of good Forex AutoTrading programs out there which DO work, and the best of these recognize the fact that profitable forex trading is not just about predicting and executing winning trades. Even with the sophisticated algorithms employed by these Forex Robots, it is not possible to predict the outcome of a trade 100% of the time. What the best EA’s do is make frequent, small trades, so that when the market does move in the wrong direction, the trade can be closed with a relatively small loss, and the overall profit strategy is maintained. This is what is known as effective risk management.

Although I have an opinion on what I consider to be the best Forex Auto Trading system, and am happy to provide a link to the website, that is not the main purpose of this blog. In my opinion, there is far more money to be made by trading this EA than by selling it. To get some idea of the potential, consider the following:

Take a look at the interest rates in your local bank’s window. These are the per annum rates at which banks lend money. The margin lending rates on a forex trading account are in the same ball park, in fact they are cheaper as they are wholesale rates whereas your bank charges retail. Now, think about this: A winning forex trade can deliver a profit of between 1-3% per trade depending on how aggressive your trading strategy is . Now the expert advisor I am using churns out on average 1-2 such trades each trading day. So what I am effectively doing is borrowing at an annual interest rate and earning at a daily rate.

Albert Einstein

Albert Einstein was once quoted as saying, “The most powerful force in the universe is compound interest.”

Based on an average daily compounding rate of 2%, trading 5 days a week and 50 weeks in the year, $1000 would become $141,267.72 in the first year, but would climb to $19,956,569.14 in the second year.

robominerstats

To get some idea of how this works on a Forex Auto Trading account,  you may view a graph of some demo trading stats above.

Now I am not saying that I will have $20 million in 2 years time, as it is not possible to compound perfectly, there will be trading losses along the way, and the percentage gain in each trade will vary. And of course I will be drawing money out of the trading account as I go. But even a fraction of that kind of success is beyond the means of the average worker struggling to make ends meet on a meagre hourly rate, and most people would be happy simply to replace their income and have more time for their families and to follow pursuits they otherwise would have no time or money for.  It’s a dream worth pursuing and definitely achievable, to replace your income with Forex Auto Trading.

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