Authored by Johnny Dunn in Forex Trading
Published on 03-11-2009
Recently, there has been a lot of talk about forex robots as to whether or not they actually do what they say and make money, or whether they’re just a very elaborate financial scam. In today’s troubled economic and financial times, many people are looking for an easy way to get rich, or even to make end’s meet. However, this also makes those same people very easy prey and targets for scams. As an investor, you should be very careful in what you put your money into.
As long as you know about forex robots and have researched about them, forex robots could potentially hold some massive rewards for you.
First, what exactly is a forex robot, and why do we need it? One of the most famous forex trading platforms is the Meta 4 platform. It is a very advanced program that allows the concept and process of forex trading to be easy and accessible to almost any investor. These tools let their clients create their very own forex robot, or they could just buy one from the internet and install it on the Meta 4 platform. Then it is all just a matter of running the robot and it will then be able to trade automatically.
Many of these forex robot companies claim that their robots are very advanced and that they have developed this through years of trial and error. According to such websites, it is as if an actual forex expert is doing these trades for you. But does history repeat itself and do past successes indicate future successes? Once again, do forex robots work?
Well, many tests have been performed and are still being performed about the actual success of these forex robots. Looking back at these results, it is safe to say that there is a moderately high success rates that these systems contain. Such success rates include winning over 70 percent of the trades and sometimes up to even 95 percent of these trades. While these rates are very high and positive, it is still important to remember that there is always risk involved in these systems.
The most deterring risk or factor is the fact that your money is at the mercy of one program. Although this program was made by expert traders and other knowledgeable persons, the program would still have to be programmed for certain marketing conditions; in other words, it may not be able to adapt to more difficult marketing conditions and issues, and this could very well lead to serious losses.
If you do decide to invest a forex robot, know that there are two main types of these robots. The first is used to help you extend a certain trade rather than identifying a good opportunity. Another type combines the forex robot and a paid subscription that obviously upgrades the functionality of a forex robot so it can change its parameters more accordingly to the current market conditions.
So yes, forex robots do have the potential to succeed and bring in lucrative profits, but it may not be as easy as the companies make it out to be, and it can bring you some severe losses.