Can Automated Forex Trading Systems Really Make Money Consistently?

Many outlandish claims have been made about automated forex trading systems.  They have been touted as your key to untold riches or an automatic money making machine.  All you need to do is to let it loose on the forex markets, and the profits are yours.

So, are the claims really as good as the reality?  Well, from what I know of the financial markets, and I have been trading the markets for quite sometime, I have to reply with an emphatic “no”.  Automated forex trading systems are no different from a human entering a trade using a certain set of rules.  If your set of rules are flawed, no amount of automation can make it profitable.  But if your set of rules are sound, an automated trading system simply duplicates what you do manually.

In the following paragraphs I would try to give you a better idea of what an automated trading system can and cannot do, so that you can make a better evaluation.

Can an automated forex trading system make money?
Yes, but so can somebody who knows nothing about the forex markets.  Looking at it at its most basic level, trading is simply a decision of whether to buy or to sell.  And you do have a decent chance of being right even if you were to make a random choice.  So, even if an automated trading system was programmed to enter and exit the forex markets at random, it is possible that this system can make money.

Can an automated forex trading system make money consistently?
For the experienced trader, this is the crucial question.  Any trader or automated system, regardless of experience or quality, can make money over a period of time.  This period of time is profitable as the set of trading rules used might be suitable for the trading environment at the time.  However, as soon as the character of the market changes, so will the profitability of the trading system or trader.  More often than not, I suspect that the portfolio will suffer a drastic change in fortunes, from mildly profitable to losing serious money.

Financial markets go through trending and non trending phases.  To judge if an automated forex trading system can profit consistently, you have to trade the system through both phases of the market and the net result must be profitable.

The automated trading system performs great on past data.  It’s going to make me a ton of money, right?
You wish.  While I can’t speak for all trading systems, I can confidently say that the statement is absolutely false for most automated systems.  As a computer programmer, I know that it is not difficult to come up with a set of rules that can fit any set of past data so that the system buys and sells at just the right time.  Look at it as having the benefit of hindsight.

But, in all probability, the set of rules inferred would tend to be too well fitted to the data, and does not have any real predictive power when applied to trading in real time.

If an automated forex trading system is profitable, why do their programmers want to sell it and not trade it themselves?
Call me a cynic but I have the following answers for you:
- As traders themselves, they know that their system can trade very profitably during certain phases of the market, but will fail miserably during other phases.  And they know that the system will probably generate a net loss over the long run.
- Their trading system was created to be sold.  Everything about the system has been optimized to make it look good, but it is really quite useless in actual trading.

Conclusion
Don’t buy into the hype surrounding automated forex trading systems.  While they do have their advantages, they are not automatic avenues to wealth.  You can use them to fine tune your system or to automate trades, but ultimately, whether you make money consistently in the forex markets depends on only one thing, namely you.

Resources
1.  Building An Automated Forex Trading System For Sale

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Just Released: Automated Forex Trading Robot That Doubles Money in 30 Days!

Article by Kari Larson

Nov. 25, 2008 — This morning, at 9 a.m. EST, when trader-developers Steve, Mike and Ulrich released FAP Turbo, folks got to see something that could change trading, and how to think about trading, forever.

The FAP Turbo trading robot has an advantage over just about anything else out there, because it has been battle-tested. You can see how the “secret logic” behind this simple software that has dramatically doubled accounts in real time here:

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Don’t Let Anyone Tell You That You Can’t Trade!

Here’s the mind-blowing thing about this new software: You don’t need to know anything about trading to use it. The FAP Turbo robot trades the Forex market for you.

I have really been impressed with just how well this thing works. You see results every day. You don’t have to wait weeks to see your account take off like a rocket.

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The Ultimate Trading Alternative

Look, it doesn’t suit everyone. Not all traders like to have a piece of software trade for them. I totally get that. I used to be like that too. I would have felt almost let down if someone did all the hard work for me. I wanted to do it myself. I needed to prove to myself that I could do it.

Now that I am older, though — with more responsibilities, commitments, interests, etc. — I don’t really care whether I do it or a piece of software does it… just as long as it does it. I use these robots as part of my overall trading strategy, and FAP Turbo is a good one.

Must-Know Details About FAP Turbo

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Marcus B. Leary, Automatic Trading pioneer of expert advisor [EA] programming and developer of the popular Forex AutoPilot Robot [forexautopilot.com], had this to say about FAP Turbo: “The shocking outcome of technology and genius working together is the most advanced live Forex Robot in existence.”

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FAP Turbo Is Your Income Solution

Whether you’re gainfully employed, underemployed, employed part-time, work at home, or simply seek a passive income stream, FAP Turbo can help. In a nutshell: FAP Turbo isn’t just a great trading product — it’s a complete income solution:

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NOTE: Information, charts or examples contained in this review are for illustration and educational purposes only. It should not be considered as advice or an endorsement to purchase or sell any security or financial instrument. We do not and cannot give investment advice.

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About the Author

Kari Larson is a free-agent writer, small-business champion, health journalist, investor and publisher [e.g., ProsperNOW -- http://prospernow-foolish1.blogspot.com] who’s focused on creating total health *and* artistic, personal, professional and financial freedom — for herself and others.

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Best Ways to Make Money Online Using a Forex Calendar

Article by Daniel Su

Do you know what a forex calendar or economic calendar can do for you? And are you using it to the full potential in your forex trading? The economic calendar can be found at some of the forex websites, an example will be Forex Factory. It will help forex traders and investors about the upcoming major news and events. Here are some of the best ways to make money using a forex calendar.

Some of the very important and common economic information is interest rate announcements, non-farm pay roll, consumer price index, unemployment rates(which is the main concern in the financial world right now), retail sales, manufacturing PMI and lots more. There are news release almost everyday.

If you are trading on technicals and does not keep up with recent economics events, then you are missing out on a big part of the financial world. You will need to know the forex market conditions even if you are using technical analysis for your forex trading.

For example, you have a good forex strategy and it makes you nice profits consistently, but the strategy does not tell you when is a choppy market. Then how do you judge when is a choppy market? Here comes the market conditions that you will need to know. By keeping tabs on the forex calendar, you will be handed an extra edge on how your forex trading systems should be trading.

By knowing the timing of economic news release, it is not a forex signal for trading. In fact, you should not be trading 2 to 3 hours before any data is released which has got to do to the related currency pairs. For example, when there is going to be a interest rate announcement (a very big event) for U.S, then you should not be trading pairs like EUR/USD, USD/CHF, AUD/USD etc. This is to help you filter out those whipsaws that might happen when the announcement is being made.

Sometimes when a news is released, there will be a huge movement for a few minutes before the trend reverses again, those are fake signals that you would not want to take in. It is recommended that you take in trading signals around 15 minutes to 30 minutes only after the market is stabilized.

Without the aid of a forex calendar, you will hardly know when to act because you will have to be sure what is happening around and when is it happening. It’s very usual for a trader to check the forex calendar for a few times a day as it is one of the criteria in a trading plan.

So do you want to get the most out of your trading account? If yes, then you better start checking a economic calendar if you have not done so for your forex trading.

About the Author

To learn the best way to make money online,click here to download my FREE56-page ebook Forex Trading To Riches.The author, Daniel Su, is the founder ofForexTradingPower.com where youcan get free premium forex trading tips and resources.

The Best Forex Trading Strategies Make Your Money Work for You

Article by Ken Cunningham

Your money should work for you. This should also be true with your investments. With any great success, you need to have strategies. Having strategies is not enough. You must have strategies that work.

Forex investments are widely used by both investors and brokers. Knowing what strategies to use when investing is significant to the amount of return a trader will get for the investment. The strategies used most often are Forex investment plans courses, AC-Markets charts, Forex software, and Forex investment companies. The Forex trading strategies that work are purely dependent on your trading and investment knowledge coupled with the type of investments you choose.

How Forex Investments Plans Effect Forex Trading Strategies

There are several Forex investment plans in the trading world. These plans are set up to help the investor make informed decisions based on the trader’s needs, investment type, broker relationship and the best Forex trading strategies for your risk aversion level. Making sense of these Forex investment plans is a job for seasoned Forex investors and or brokers.

Knowing which investment plan is appropriate for you, like any other important decision, takes time, effort and research. You then have to compile Forex trading strategies that fit within the perimeters of the outcome you expect. Once you have learned which strategies work best for you, you can then start deciding what investment plans and strategies will work best together.

Now You Have a Plan and a Strategy–What’s Next?

The next step is to start researching what ACM Forex trading platform will work best with your Forex investment plans and Forex trading strategies.

Just as every person is different, each investor is different. They have unique plans, struggle to find the best Forex trading strategies and, of course, want a Forex trading platform that is easy to learn and to use – they even have unique reasons for their investments. The reason for the investment might be to help offset the economic impact that resulted in loss of retirement by so many. In this case the investor may already be seasoned and my not need a broker; they may just need a great Forex investment software.

Others may have little or no knowledge of the Forex market and may need a broker along with a Forex investment course just to learn the basics so they can supplement the missing income the economic crisis has caused. In this case, the platform they use could be one that is guided by a broker, a Forex investment firm, or a hands-on-learning course.

Whatever the reason the investor is taking a risk. This risk should be one that the investor feels comfortable making rather the investor in doing it solo–without a broker–or with one. Knowing which Forex trading platform is right for you will increase the success of your investment. Keep in mind that knowledge is power, and that your money should be working for you. Just like most other major decisions, you should always research any investment. Make sure that the strategies, investment plans and the platform you choose is one that is easy for you to understand, viable, and most of all–proven successful.

About the Author

Ken Cunningham is an MBA graduate who has decades of experience in entrepreneurship in the mining, stock and Forex trading, real estate, and health care and telecommunications industries. His goal is to provide helpful and informative information to readers in the home business, Forex and investments areas. Please visit The Biz Hunter for more articles and reviews.

3 Best Forex Trading Strategies To Help You Make More Money Trading Currencies

Article by satrap

Forex trading is without a doubt one of the best and fastest ways to make money online, if you follow a winning strategy. You can not become successful in trading foreign currencies by making decisions blindly. Forex is a very risky business. If you want to profit from Forex trading, you need to follow a strategy that will maximize your earnings, while minimizing your risks. Here are 3 such a strategy that have been around for a long time, and have proven to be the winning strategies when it comes to Forex trading.

Leverage StrategyOne of the most successful and well-know Forex trading strategies Forex trading is leverage. A strategy based on leverage, allows you to make hundred or even thousand times the amount of money you have in your Forex account for trading. It’s a great strategy if you can master it. There are many success stories from Forex traders who have used the leverage strategy to make record breaking profits. But before you start applying this strategy, you will need to learn as much as you can about Forex market, and what and how effects the prices to rise and fall.

Stop-loss order Forex Trading StrategyStop-loss order is another great strategy for Forex trading. Stop-loss order strategy works simply by identifying a point where you will not trade. Meaning it will identify this point before you begin the trading. Be careful when using this strategy. Make sure you are able to analyze trading signals, and avoid mistakes in prediction. Making a mistake in predicting Forex market, no matter how small, could cost you dearly. So, make decisions wisely.

Automated Forex Trading SystemAutomated Forex trading is the favorite Forex trading system of many successful traders. It makes trading Forex a whole a lot easier, by automatically determining when to enter a trad, or when to exit one. Of course, the price and the point where the program would enter or exit a trade is predetermined. Automated Forex trading has its own risks as well, but the rewards are far greater that the risks. There are many great automated Forex trading system for a reasonable price, that will make trading in Forex market joyful. And if you use the right automated Forex trading system, you can make unbelievable profits. There are many software out there that can automated your tradings for you, but one of the newer ones that have generated quite a buzz recently is Forex Neutrino. It’s a little costly(about 0), but if you are a serious investor, its worth it

These Forex trading strategies can give you much better trade opportunities in the Forex market. But remember, no matter what system or strategy you use, there is no guaranty for succeeding by 100%. You need to keep in mind that no strategy alone is going to give you the perfect trading system. These strategies are here to help you maximize your success rate while minimizing your risks. Testing and constantly adapting your strategies for the better, will ensure your success in making money with Forex trading.

About the Author

Satrap is the founder and author of controversial blog, blogstash.com. A blog full of great how-tos and information about making money online. Visit blogstash today to get your share of this valuable information and learn different ways to make money online.

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