| Automated Expert Advisors (EAs) Are They Worth Considering? |
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| Written by Ash Naeck |
| Wednesday, 14 October 2009 20:23 |
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If you are familiar with Forex, I bet this is one of those questions that got your brain juices running.
If you are familiar with Forex, I bet this is one of those questions that got your brain juices running. My trading career begun when, Expert Advisors were becoming popular among the retail traders. The hype and results surrounding those systems were so mind-blowing that I believed Forex would be an easy trading game. I wasted a lot of time and money in search of the best Expert Advisor out there. I bought literally every EA that hit the market. They all promised the sky but in the end I was left with nothing. It took me a while to come to terms that most of those systems were no definite solution to currency trading. Why are we so obsessed about Automated Expert Advisors? These are the main points why traders use EA's: - System is on autopilot - Less emotion - More time to relax - Easy to install and use - Easy to use - No thinking required - Improve trading system These are the main features that attract us to trading on auto-pilot and I have to admit, they are all very tempting in hind sight. However, the trading world is not as perfect as it seems. Many a time things that, "look too good to be true'' turn out to be greatly deceptive. There are thousands of automated Forex providers on the net nowadays. This number is increasing day by day and funnily enough they all seem to have insane winning rate some even with a 100% success rate (hmmm). The common sales pitches used by those providers are: - Make a killing trading with this robot - No losing Forex Robot that can turn $500 into $5000 in less than a month - Make a ton of Money with no experience - Robot with 100% success rate turns $100 to $1000 in a month If half of the above were true I would be sitting on a nice beach as we speak enjoying the sun and sipping on a cocktail, however, here I am sharing with you my experiences about automated expert advisors. Systems that promise to make you thousands overnight or 500%+ return per month are simply B.S. You are more likely to lose than actually make money. I do hope you are lucky enough to have come across this article before making any hasty decisions in purchasing a Forex Robot that promises to make you 500%+ return a month. If such a robot existed all the major banks and financial institutions would sack their FX traders and use those systems instead. They will save a colossal amount of money on man power and on top of it all will be making astounding returns every month. However, that is not the case. Banks and major financial institutions rely solely on their human minds (traders) to make money day in and day out on the market, not on the so called Robot traders. Those major institutions understand the fact that market conditions are not always in harmony and that price is highly unpredictable. No mathematician or engineer can outperform the market with mere Forex robots that do not take into account change in market conditions. Above all, results generated from back testing are not in no means a reliable way to assess how good a system is. Here are some of the points to take into account when investing in a Forex Robot: - Who developed the system? (make sure he/she is a well-known Forex trader with substantial experience in Forex trading) - Live account results of the system (very important as the basis of your decision will rely heavily on that point) - How long has the system been in operation?(2+ years) - What is the maximum risk exposure? - Maximum draw-downs on each trade. If all the above questions are ticked then you got yourself a potential winner. In my early days, I spent a considerable amount of money searching for the right expert advisor. To cut a long story short I ended up with less money than what was promised by the people selling those robots. I hit rock bottom at that stage and nearly gave up on those so called Expert Advisors when a veteran trader I knew advised me to try a product designed by a guy named Ashkan bolour. At this point I had no clue who this guy was, so after some research I came to know that he was a highly respected and successful Forex trader. He had featured in many trading shows and books and was a veteran money manager. He had an automated system that had good reviews and which seemed fairly priced. So I decided to give it a shot. Wellto cut the story short I never looked back. If you are serious about trading and looking to make some consistent and realistic profit every month with minimum draw-down, Ashkan Bolour's system, the FXprofit Mountain, is highly recommended. This is the only Forex Robot you will ever need. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. To see this system in action go to the Forex Expert Advisors section of Forex Trading Domain for a review of all the Forex Systems. |