Thursday, December 11, 2008

Automated Forex Robots - Which Has the Best Mathematical Theory For Profits?

Automated Forex Robots are big business online and sell the concept that they can make huge gains and keep risk low, by using mathematical algorithms to make big long term profits - but which is the best system? Let's take a look...

Firstly, let's define a mathematical theory:

It's a theory that works all the time by definition and no automated Forex Trading system makes money all of the time and the reason is simple markets don't move to mathematics and of course if they did, we would all know the price in advance and there would be no market!

Now we have learned that markets don't move to maths, are there any robots which have a good sound theory that can make money most of the time?

The answer is yes - but only on paper looking backwards!

Look at any of the systems sold heavily online and look at the disclaimer and you will always see "simulated in hindsight" and these systems always make money - but there is a problem with a back tested track record and it's the following:

Curve fitting and System Wipe-out

What the vendors do is take a segment of data and bend the rules of the system until they make a profit. Of course this is doomed to failure in the market, as no two data sequences ever repeat exactly the same again. The system rules cannot be bent in real time and the result IS losses.

Of all the heavily promoted Robots sold online, there is not one I would trust with my money and as the vendor never presents a real time track record he doesn't either! You don't get an income for life for $100 - if only it was that simple to make money however the good news is you can make money with forex trading systems and we will now look at how.

The Real Way to Win With Forex Trading Systems

Forget about complex maths and look for simple odds based trading system.

The simpler the system the more robust it is likely to be and you are looking for one which trades the odds successfully.

The appliance of mathematics doesn't work because markets don't move to certainties just probabilities and the more complicated the theory is, the more likely it is to break and fail in the market.

Forex trading is essentially simple, so get a simple, robust system, don't look for perfection, trade the odds and enjoy currency trading success.


For 2 essential free trading Pdf's and for more on a successful Successful Currency Trading Systems and an exclusive RISK FREE Forex Trading Course visit our website.

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