Question:
I’m a fairly new trader in forex and I’ve been paper trading since May of this year to find a strategy. Anyway, looking around on the Internet, I’ve come across several trading robots. Are these devices really what they are supposed to be, with several claiming wickedly high returns on their products? Could you indicate with some certainty that these devices can be a definite boon to forex trading or a total loss?
Leslie from Volatility Valley
Answer:
Leslie, congrats on taking the time to develop a strategy before putting the big bucks on the line.
As always, the first thing to do when discussing something is to clarify terms. The first thing to clarify here is your use of the word “device” when referring to “trading robots.” A trading robot is not a mechanical device; it is a software driven automated trading program.
As to their ability to produce profits … I cut my entrepreneurial “teeth” in the computer world back in the early 1980s. I’ve been closely involved since. One thing I know for certain is that software is still an inferior version of the human brain. We are still a ways from true artificial intelligence, which is what would make forex trading robots something other than just more of the same in the world of automated trading. Some software produces some of the time, some produces none of the time, but none produces all of the time.
As to the “wickedly high returns” … Keep in mind, if it sounds too good to be true, it probably is too good to be true. I don’t know how the software makers arrive at their claims, but I suspect some sleight of hand is going on. Ask yourself, if these returns are so good, why on earth would those who possess such a wonderful tool try to make money selling the tool?
I am not saying that the reputable automated trading systems are not good tools, nor am I saying that a trader should avoid any of them. Tools are tools, and good tools are better, but, as any carpenter knows, you can’t turn on your saw , walk away, and come back to a beautifully built house; there’s a whole bunch of work that goes on in between. Yes, a top-flight saw (and other tools) will make the work easier, but it can’t do it alone. A human needs to participate.
For more info on this subject, do an Internet search for “forex trading robots” and you will find reviews, analyses, and products with a wide range of pricing. Remember, paying more does not necessarily mean a better product. Try out some to see if any work for you.
Trade in the day; invest in your life …
