Why Does My Forex Robot Fail?

Forex trading has become one of the most popular ways of making money online this decade. With its popularity has come the invention and release of automated forex software or forex robots. With every man and his dog trying to make a quick buck with the distribution of these artificial intelligence systems it is hard to know what is genuine.
In this article we are going to look at the reasons why most forex robots eventually fail, whether it takes a week or a month they will eventually fail, and how we can spot the genuine robots from the fakes and scams.

Forex robots are quite clever pieces of kit they are designed to look at the technical analysis of the market and establish repeating trends from previous price action. When you think about it all the indicators you use as a human trader do exactly the same thing.
The difference between human traders and robots is we sense the change in the market by underlying factors such as fundamental data or economic alerts. A forex robot is just designed to be programmed to carry out the equations that it assumes are going to be profitable trades. This does work for a time and can work brilliantly.

The difficulty is that the forex market is so vulnerable that it basically has its own personality and out of the blue can surprise even the most experienced forex trader. Doing a random action that goes against the past technical analysis, will simply cause a robot to crash and wipe out your account fairly quickly.The trade history that you read on the sales pages of these robots is, to say the least slightly, tailored to what the marketer wants you to see. Either the robot has been tested on trades that have already happened which it is programmed from, basically guaranteed success. Or in more extreme cases the downloaded account history has had a little photo shop work.

Meta Trader 4 is the trading platform used by most robots and there is a wonderful tool you can use to login to someone else's account and view the trades with read only rights. This is called an investors account; you have a specific username and password that allows you to log into any account to watch trades, view history and activity. You have no permissions and cannot change any details of the account or trades.

This is the way and the only way to see if a robot is doing what it says it should do. Watch it trade on a live account, no photo shopped results or back testing. Before you buy any forex trading software you should be able to view this as proof. Don't be tricked into buying a forex robot buy just looking at past trade history alone, demand to see it in action.

Resource: http://www.sooperarticles.com/finance-articles/currency-trading-articles/why-does-my-forex-robot-fail-280974.html