Forex Robots have to be one of the most talked about subjects on the forex market. But are people actually making money with them? If you really do your due diligence, you’ll see that many people are not. Many people have lost a lot of money on these automated systems. There is a very simple reason for that.
The markets are complicated creatures. The idea of a system that can be programmed into succeeding throughout any kind of market condition without any kind of human interaction is a bit bold.
You’ve got to remember in the forex market, we get important news every single day. Do you think the programmable robot has the capacity to understand conditions such as the Non-Farm Payroll numbers or an Interest Rate Decisions?
The majority of traders don’t even know how to handle these news events, and to let a forex robot just blindly trade for you, seems a little dangerous.
The other obvious flaw with forex robots is that you have to trust your broker as well. Now, I like my broker, but there is no way in the world I would let a robot trade in a live account with real money, just for the simple reason that I would have to trust my broker to comply with the robot’s trade signals. This can be completely manipulated by the broker.
If you don’t believe me, go on any forex forum and look up threads on forex robots. I guarantee that you’ll find threads where people have made pips (sometimes a lot) on demos with the forex robots, but the moment they start trading with real money, things suddenly change for the worse. It’s funny how that works.
By: John Templeton