Can Automated Forex Trading Systems Really Make Money Consistently?

February 27, 2014 by  
Filed under Automated Forex Trading

Forex profit

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..

Automatic Forex Trading Systems – The 3 Deadly Forex Mistakes That Will Destroy Your Trading Account

July 11, 2013 by  
Filed under Forex Trading System

Automatic Forex trading systems are often trumpeted as the way for beginner and veteran traders alike to eliminate emotional decision making and mental issues from their trading. The reality is that there are still many emotional and psychological traps that can hinder any trader’s Forex automatic trading operation, even with the best Forex trading systems.

There are 3 deadly Forex mistakes that can prevent the successful operation of automatic Forex trading systems and Forex robot traders, and by the end of this article you will be able to identify these deadly mistakes and eliminate them from your Forex automatic trading.

So where do most automatic Forex trading systems fail? Believe it or not, most Forex robot traders actually lose money because of the person running the Forex robot trader, and not the person who developed it. This failure stems from mistakes made by the operator of the automatic Forex trading system while affected by the following psychological factors:

Deadly Mistake #1: Greed

The first deadly mistake that prevents most Forex system traders from realizing the full potential of their automatic Forex trading system is greed. Many Forex robot traders allow the trader to adjust the money management rules of the system in relation to the account balance and the level of leverage available.

Greed causes many traders to make the mistake of trading lot sizes that are too big for their level of leverage, which often results in a rapid wipe out of the trading account. When determining trading lot sizes for your Forex robot trader, be sure to err on the side of safety so as not to fall into this trap of greed.

Deadly Mistake #2: Impatience

The second deadly mistake that prevents most Forex system traders from realizing the full potential of their automatic Forex trading system is impatience. Once they have bought their Forex robot trader, they just can’t wait to load it up with real funds and begin their Forex automatic trading right away.

This goes against the cardinal trading rule of always prioritizing capital protection. Every automatic Forex trading system must be tested on a demo account first to verify the results advertised by the developer, as well as to familiarize the user with the correct application of the Forex robot trader.

Deadly mistake #3: Fear

The third deadly mistake that prevents most Forex system traders from realizing the full potential of their automatic Forex trading system is fear. This is closely tied with mistake #2 and the lack of live demo testing before commencing Forex automatic trading. Without the experience of trading the Forex robot trader on the demo account, the trader will not know what to expect from the automatic Forex trading system and will be prone to prematurely shutting down the Forex robot trader and returning it for a refund.

To avoid lost profits on a perfectly functional Forex robot trader, every trader must trade it on a demo account for at least 30 days to determine the basic parameters of the system (e.g. average profit/loss, standard deviation & upper/lower range limits).

Are you making any one of the 3 deadly mistakes: greed, impatience and fear? If you are, stop trading immediately and take the necessary steps to correct these mistakes before you go any further. Otherwise, you are putting your trading account balance in grave danger of a blow out.

 

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What are automated forex trading software systems?

July 3, 2013 by  
Filed under Automated Forex Trading

Automated Forex Trading

Everyone who trades forex knows what are forex trading signals. At the same time everyone knows how to get forex signals. Generally most of them knows only two ways. They either get the forex trading signal by researching on the forex previous trend charts and various other subtle indicators or they simply subscribe for the forex trading signals with some forex signal providers by pouring more money every month. But very few know the third way to get the forex trading signals.

Where are we now?

Technology is developing at a rapid pace!

The third way to get the forex trading signals is by using the “advanced forex trading signal systems” also termed as “advanced automated forex trading signal generators”.

So what are these “advanced automated forex trading systems”?

Advanced forex trading signals generators are the advanced automated forex trading systems which generate the forex signals for forex traders. These are the stand alone trading systems which work with all types of currencies available. These advanced automated forex software systems generate forex signals if you just feed them with the data that is available with you. The data feed that it needs will be available free in the internet. Just get that data and feed it and simply say calculate. It gives you the complete data when to buy and when to sell in the other words it gives you the forex trading signals.

Advantages by having an “Advanced Automated Forex Trading Signal Generators” for your self are:

1. They are for one time purchase doesn’t need to pay every month like subscriptions.

2. They are stand alone and in future and if any new version comes in future, you are entitled to clain the new version at no extra cost.

3. They will work with any forex trading platform which your forex broker provides.

4. They will work on any currency pairs that you trade with.

5. You could be more independent with out depending on any of the forex signal trading providers.

6. You could be more efficient than earlier in getting more profits.

7. No need to worry all the time for trading signals. Whenever you want you can generate the trading signals.

8. No need to spend money on forex brokers or on any forex experts for monthly subscriptions to get forex trading signals.

9. Saves a lot of time and can allocate for other activities.

10. They generate the best forex trading signals than that are provided by your forex signal provider.

11. They provides you the demo so that you can handle it more efficiently.

Lets don’t waste time and have the best “Advanced Automated Forex Trading system software” to grab more profits from forex market.

Clickhere to check the best automated forex trading system software ever!

Click here to get more information on “Automated Forex Trading System Software“.

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Forex Trading Systems Online – The Diamond In The Ruff

May 19, 2013 by  
Filed under Forex Trading System

The bottom line with any forex trading system is, does it work and will it give you monetary success? Finding the best forex trading system is usually the best way for a trader to learn how to use the Forex and achieve monetary success. If you only rely on experience and instinct, you may not likely succeed in forex trading. Therefore with an education in forex trading, you will be better equipped to handle the demands and the stress that comes along with the trade. While many of the systems on the market that claim to teach an effective forex trading system are very complicated, the best forex system should be commendably simple. It should be simple enough to both understand and use yet effective enough to produce results that would keep even the more experienced forex trader motivated. Hence, it should not be viewed as a system for beginners only.

The developers of the 5EMA Forex System explain that there are many advantages to trading in the forex market. Although there are many things to learn at first, with perseverance, forex trading can be rewarding to many. The forex trading market is the most volatile in the world and therefore can be a big risk. Some of the features of the 5EMA’s Forex System that make it enticing are usability, flexibility and versatility. We will discuss each of the features briefly to show you why this forex trading system is the ultimate forex trading system.

Why can you say that this accurate forex trading system has usability? As stated earlier, anyone can learn to gain maximum benefits or profits from forex trading, as long you are in the right frame-of-mind, and you learn to trust the best forex system trading tactics and techniques. This forex day trading system is easy to implement, as the complete user guide is worded with no technical jargon, and you can readily understand what is being relayed to you. The included software with templates is also user-friendly, and you will be able to easily manage with these as your forex trading tools. Also, this day forex signal system trading method is said to be flexible because it was developed and designed for the swing-trader or the day-trader.

It is safe to say that this forex trading system is versatile, because aside from catering to different types of forex traders, the system can also work well for persons who do not have the time to monitor trends all day. The 5EMA’s Forex System can also view long term signals to help the forex trader decide ahead, and to allow him to keep his normal job, while still being a forex trader in his part time.

With this forex trading system you can: know the classification of forex trading markets, find out who the big players are in this game, and how significant their moves can be, plus understand what the main concepts of the forex market are. Also, in sections of the trading system guide, you will learn the important prerequisites that you need to have before jumping in and starting to trade. You will also learn what types of methods and analytical tools that are used by professional forex traders, and how to apply these skills on your own.

Finally, this forex trading system is explained in detail, including, the rules of trading, screenshots and graphs of sample trends and how to interpret them. You will learn the terms commonly used by forex traders, as well as the main rules of forex trading. These are some of the reasons why this is one of the best forex trading systems online. And as the experienced forex traders have stressed, keeping the rules in mind will not only help you with your trading, but will allow you to reap maximum benefits in the long run..

Do Not Worry – Technical Analysis Will Be Done by Automated Forex Trading Signal Systems!

February 6, 2013 by  
Filed under Forex Trading Strategies

Forex (Foreign Exchange, Forex currency exchange) simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve trading of the major currencies.

Forex trading requires a constant monitoring. You can win the forex market if you can monitor the forex market all the time and should be able to analyze it. Trading forex needs a lot of research. Forex trading needs full time effort. Its not so easy to win the forex market just by being a part time trader.

Whether it is full time trader or a part time trader, forex market needs a lot of technical analysis and fundamental analysis. Doing fundamental analysis is really very easier than doing the technical analysis.

A technical analysis is founded on three suppositions:

1. Movement of the market considers everything;

2. Movement of prices is purposeful;

3. History repeats itself.

Basically technical analysis should be viewed as the study of historical prices at the market in order to forecast or even know with greater probability in what direction the future prices will move. Technical analysis needs various technical indicators, different types of charts, graphical methods and analytical methods.

Technical analysis needs a lot of time, concentration and patience. At the end of technical analysis, you get an idea when to buy the forex and when to sell the forex in order make the profits.

As a part time trader, you cannot keep much time for technical analysis. It’s the work of full time traders. But in that case, how could a part time trader win the forex market?

Forex market is growing faster and faster than any other market in the world. Many latest tools have also evolved for the forex market. The solution for the part time traders is to get the forex trading signals.

Trading signals are time-tested indicators of trends in the forex market. Breakouts, support levels and resistance levels, envelope patterns, currency pairs near moving averages, stochastic lines, oscillators, Fibonacci levels – application of these indicators enable forex traders to make a profitable entry into the market. There are about 26 such indicators – reason enough for investors to rely on seasoned forex brokers.

In other words, Forex Trading Signals are selling and buying recommendations given by any third party. Such parties could be brokers, brokerage firms, analysts, traders, forex related software tools, etc. Different parties offer different signals, tips, and trends for trading in forex markets. It is best to collect daily Forex signals from reliable sources. A combination of fundamental and technical analysis forms the foundation of accurate Forex signals.

In the other way, the part time traders should either subscribe for signals with any forex expert organization or they should have some software tool which would do the technical analysis for them and give the signals.

If you subscribe for forex signals with any forex expert organization, the forex signals cost anywhere from $50 to $200 a month. It’s up to the individual trader to decide if the cost is worth it. Don’t think that signals can take the place of trader education: they are advice, and if you don’t have the knowledge to analyze the advice, you should go back to the books before using a signal service.

Now coming to the forex trading software tools, there are some tools which will be available to you provided by your forex broker and also some independent tools (automated forex trading systems) which are independent on any of the brokers. These automated forex trading systems generate the signals for the day that when to buy the forex and when to sell the forex and automatically place orders for your broker without your presence

Coming to the automated forex trading systems that generate the trading signals, they are more handy. Generally the tools that are provided by forex brokers, they will be restricted to only particular currencies, but that would not be the case with the independent automated forex trading systems. These tools will be available in the internet market and that too for a low and affordable price. There is no need for you to pay every month for these tools; it’s just a one time purchase. There tools generally doesn’t cost more than $100.

The main advantage of these automated forex trading systems is that there is no need for you to depend on any other forex signal providing organizations or on the forex brokers who serves you. There are many chances that your forex brokers systems may also get down due to some other reasons. They can even trade for you even while you sleep!

To catch up with fast growing forex market and to make good profits in forex trading, I prefer the automated forex trading systems. These automated forex trading systems will be of more useful to both part time and full time forex traders..

Best AUTOMATED FOREX TRADING SYSTEMS and SOFTWARES That Are Used By Investors

January 31, 2013 by  
Filed under Automated Forex Trading

Before we get to the automated Forex trading software, it is essential to know more about trading and the Forex market. The word Forex is basically derived from the phrase, ‘Foreign Exchange’. The Foreign exchange market originated in the Imperial era and was significantly modernized in the post World War 2 era, with its modern conception being largely based upon the stock exchanges and money markets. The Forex market, which is sometimes also known as a currency trading was basically set up in order to help people and companies to convert one currency into another. Just like stock markets, people also trade for profit in the stock exchanges. The mechanism to obtain profit is simple. A United States trader can invest into the Euro of the same value. When the Euro apprises the US trader can immediately convert the Euros into dollars which would be plus something. The only difference in automated Forex trading systems is that this transaction is totally automated.

About Automated Trading Software
There are several Forex trading strategies, that can be implemented by people to obtain profit. However, the Forex market is a huge one with almost all national currencies being traded on the market. The market is basically twofold, with brokers and investors being the two folds. The automated Forex trading systems are basically programs that can be installed on your computers, that can trade currencies automatically, without human supervision.

The working of an automated Forex trading software is simple, the software scans the market for low priced currencies and purchases and then sells them into high priced currencies. Of course the program is designed in such a manner that it ensures a profit for the investor. There are several different strategies that you can implement with the help of the automated Forex trading strategies, such as arbitrage trading or day trading strategies. Some features of the automated Forex trading software go as follows:

Automated trading software gives updates regarding potential currency pairing, such as USD and Euro. Usually the trader already owns some USDs or Euros from earlier trades. In such cases, the price difference can be profited. In some cases, the program can also automatically purchase or sell the currencies without human supervision.
Often there is a chance to have an arbitrage trade, i.e., purchase at lower price, and then sell at a higher price simultaneously. This transaction can operate at a much faster rate as the automated Forex trading software has much better reflexes than the human investor.
Thirdly, the automated Forex day trader also brings updates and advises from across the web and globe at the end of the day which can be easily used by investors.
Another operational feature of all Forex software is that they show composite graphs of the projection of several currencies. What more, the graphs are authentic. Such graphs can be used for a comparative study of all the different economies and their currencies.
Some Forex day trading systems can be instructed to buy and sell currencies on their own, upon the breach of a particular upper or lower limit of the currency projection.

There are countless automated Forex trading systems and software, that can be used by investors. Often brokers also provide the software so that the communication for trading can become faster. There are also several free automated Forex trading software packages that can be downloaded.

It must be noted that these software have ‘settings’, that is, they have to be instructed over what to buy and sell or what should be the total quantity of this purchase and sale. Thus, your own study of the different economies and well thought out anticipations must be a commanding factor of the software. It must be also noted that even the best automated Forex trading software packages do not have a totally loss free mechanism. Automated Forex trading is also loss prone, hence be sure that you have a good analysis of the different economies. Apart from that, there are also several scandals and illegal activities regarding such systems and facilities, that have been reported, hence have a look at some automated Forex trading software reviews before installing or purchasing one.

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Forex Trading Systems With Forex Trading Tips and Tools

December 28, 2012 by  
Filed under Forex Trading System

Realforexresults provides solid information that you can count on to make decisions about your investments.  It provides forex factory information and forex India information that is timely and accurate.Realforexresults provides articles, information, and forex results that will help you make important decisions regarding your investments.  All the relevant forex related information is available in concise, easy to read articles that are dated for your convenience.

Realforexresults.com has a very clean look and feel.  There is a convenient clickable calendar.  Clicking on a date will retrieve articles written on that date.   This is a nice easy feature that gives you the information you want with a simple click.  With roughly trillion traded on the foreign exchange daily it pays to have the most up to date research available.  Realforexresults provides you critical forex information on a global basis.

Time is money and knowledge is power.  Realforexresults.com provides the information that lets you to control both. The foreign exchange market is global and has no address.  Forex information is the key to making money on the exchange market.  Realforexresults.com is all about providing the latest information from around the globe.   Bookmark realforexresults.com today and stay abreast of all the breaking forex news from around the globe.

The foreign exchange arena can change very quickly.  Information and current events regarding foreign exchange markets is the key to making good investments.   Forex is the only market that operates on a 24 hour basis and spans the globe.   Having real time forex information is the key to success in the global currency exchange market..

Forex Trading Software – The Best Way to Build Forex Trading Systems

July 30, 2012 by  
Filed under Forex Trading Software

Like practically everything else, the world of forex trading is computerized. If you want to make decent money from your forex investments, you will need to have good forex trading software.Building forex trading systems may seem completely overwhelming, but it doesn’t have to be. Yes, the world of forex trading is very risky; a simple mistake can cost you a great deal of money. However, the best way to build forex trading systems is to get educated – learn the forex ins and outs, get the right forex tips from the right experts, and get the best forex trading software that you can.Many times, you can get forex trading software right from your broker. However, to get it, you usually have to have an account with them that is large enough. But, if your broker won’t give it to you, all is not lost. You can buy forex trading software on your own; just be prepared to spend a good chunk of change for it.Is forex trading software really worth the investment?Yes.Good forex trading software allows you to make deals with the click of a mouse, and get real-time updates on the forex market. Depending on your software, it may give you charts and background research. Since there is no opening or closing bell like there is in the stock market, forex information is constantly changing. However, you do not have to stay up all night, waiting for the newest information and deals. Instead, you can leave it all up to your forex trading software.Good forex trading software offers automated trading, which can make your life much easier. Automated trading is exactly what it sounds like; you turn over the decision-making to automated ‘robots’. Your forex trading software comes with settings – so that your robot knows exactly what types of deals you’re looking for, and how much you are willing to spend.How much decision-making you give these robots is up to you. If you simply need a way to keep track of the forex market while you’re asleep, your software can handle it. Or, if you need to go to work all day, you won’t have to worry about missing a great deal; your robot can handle it.Your robots can also handle areas of your forex trading systems that you don’t know much about. Instead of guessing on a deal, let your robot handle it. It’s like letting an expert temporarily take over!

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Automated Forex Systems Make Trading Easier

May 17, 2012 by  
Filed under Forex Trading System

If you’re serious about Forex trading, or foreign currency exchange trading, you’ll need a way to monitor and control your transactions without having to keep up with it around the clock. That’s where automated Forex systems can help a great deal. Many automated Forex software programs have been developed to make trading life easier. Let’s explore the benefits of these systems and see how they can work for you.Save Time on Forex MonitoringWith automated Forex, you can analyze your Forex trading in real time and make changes to your real account – all through one application. Many newer systems will connect to Forex signals that are generated by the trading systems. The signals go to your real account so you can know your open positions and manage your Forex trading from one place. These easy day trade signals make management much easier from day to day when you are unable to take time to monitor all your trading systems or to open and close positions as needed. It’s like having an expert advisor system right in your computer!No Hands-On Trading NeededWith automated Forex, there’s no need to do hands-on Forex trading. The software does it for you. And the good news is it keeps on working while you sleep! It takes trades day or night so you can rest easy while the software keeps your Forex trades up-to-date and profitable.Save and Make More Money with Forex AutomationTime management is one of the keys to Forex success. Automated Forex gives you an opportunity to save and make more money because you won’t miss important Forex trading opportunities as you would when you have to monitor your trading systems all on your own. As a professional trader, you can have multiple trading systems in different markets (EUR-USD and others) and still keep up with them all successfully when you automate. The software will trade multiple systems for you, which enables you to reduce your trading risks and level out your equity curve.Practice Forex TradingSome automated Forex systems will allow you to create practice accounts so you can learn how to use the system properly without risk. It’s much better to make mistakes with a dummy account and virtual money than to lose your real money as you’re learning! If you are unable to create a practice account with your automated system, find a separate software program or an online application with which you can practice.Trader Psychology Not a FactorAutomated Forex goes beyond your own thinking and analyzes the market using real data related to the Forex market. Your own trading psychology might cause you to make costly decisions due to emotions or rash thoughts about the market. You might be too emotionally involved to do your own trading at times. But automated Forex will do it for you, helping you overcome this issue.With automated Forex trading, you can have peace of mind knowing that your little “expert advisor” is always watching and trading for you!

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Can Automated Forex Trading Systems really make thousands of dollars per day?

January 19, 2012 by  
Filed under Forex Trading System

Today in the forex market, there are many automated forex trading system software’s available. All those automated trading pilots announce that anyone can use them to make thousands of dollars everyday. But how far all these are true?

I believe that an automated forex trading system can make some profits but not thousands of dollars everyday. You can make consistent profits by forex trading systems if and only if you know, “how to use it” and “when to use it”.

Everyone thinks that by using automated forex trading system software all the time round the clock can make huge profits and can become a millionaire in a night. But it is not the fact. If you do not know how to use it and when to use it then you will be finally left out with empty hands. Forex is a very dangerous market. You should be very careful while taking any decision. So any decision to use automated forex trading system should be taken with care!

I think you might know about the terms technical analysis on forex market and fundamental analysis on forex market! Any automated forex trading system software can do the technical analysis because technical analysis is nothing but finding the trends, when will that trend repeats. Since automated forex trading system software is built up with software consisting of mathematical algorithms it can do the technical analysis using the mathematical algorithms with which it is built up. But it can not do the fundamental analysis for you.

Fundamental analysis is nothing but analyzing the economic strength of a country with which the currency you trade. The economic strength of any country can be down either directly or indirectly. May be directly because of internal issues of that country or may be because of external issues with relation to other countries, indirectly. The issues relating to fundamental analysis can never be anticipated by any automated forex trading system software. So, fundamental analysis is totally different to technical analysis. Fundamental analysis is something like the other side of a coin. So fundamental analysis is always important whether you trade the forex manually or you trade the forex with any automated forex trading system software.

I think now you would have come to understand when to use automated forex trading system software! Before you use any automated forex trading system software, you always need to have fundamental analysis. If your fundamental analysis is positive, then you can keep your automated forex trading system software all the time and round the clock to work for you to make profits. If your fundamental analysis is negative you should never use automated forex trading system software.

Now let’s come to “How to use an automated forex trading system software”? I do not mean how to make an automated forex trading system software “On” and “Off”! Its the strategy how you deal with automated forex trading system software! You need to have a specific strategy how to make your automated forex trading software work for you to make profits. A specific strategy is always needed when you trade with forex trading systems.

I summarize that, no forex trading system software can make you millionaire in a day by making thousands of dollars per day. Using automated forex trading systems make you earn consistent profits but you need to know how to use it with your strategy and when to use it with your fundamental analysis!

Clickhere to check the best automated forex trading system software ever!

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