One of the basics of Forex trading is to understand that to win you need a good education and here I want to look at Forex robots and Expert Advisors which a huge amount of new traders buy and lose with – the Forex robot scam is one you can easily spot and avoid.

Marketing companies are always on the look out for an area to sell get rich products and with more people than ever, wanting to be Forex traders these companies sell Forex robot scams. The industry is huge but there easy to spot and avoid and the first tip is common sense:

If it Looks to Good to be True it Probably is!

Forex robots present the idea that by paying them a small fee you get a Forex trading software package which you just turn on and then it makes trades for you, with its trading signals and you get a regular income. Do you really believe this is true?

If you think about it, making money is not that easy trading currencies or in any business venture in life. Lets look at the track records of these Forex trading robots and see why they are obviously, not telling the truth in terms of the profits they make.

The Track Record

You will normally be presented with, a graph of the performance by the vendor, of an automated trading system which will simply show a line going up and up, with very few pull backs orlosses. Most vendors are presenting track records, with several hundred percent or sometimes, more than a thousand percent profit per annum and the draw down is normally 10% or less.

These track records are scams – the best traders in the world could not make these gains with such low downside volatility with their trading strategies and cheap piece of software is not going to do it either so how are investors duped into buying these Expert Trading Advisors?

The Traders Secret Algorithm

These scam systems normally say they have discovered some secret code to currency price movement or they system was used in a hedge fund and made billions or some other ridiculous story to get the potential buyers attention but the trader doesn’t exit. 

Sometimes, you will get a video, where the so called trader appears telling you about the secret or his skills but its normally just an actor and you will see in many instances, one actor play the role of numerous traders!

Naive traders believe this nonsense without stopping to think that if the trader is so good at making money, why is he selling a system for so little? 

He could of course, just focus on trading his account and making a huge fortune.

The Real Track Record

Most system present track records which they claim are real trading but there not real at all and if you go to the bottom of the sales copy, you will normally see the worlds hypothetical or simulated in relation to the real track record just presented! 

If it's real time, it should mean its made money in the markets but none of these trading robots have made the money they claim. They simply try and give readers loads of statistics and hope, they don't read the disclaimer.

The Testimonials

You also get endless testimonial (Normally videos) where the so called user of the trading system tells you how wonderful it is – but are they real? No there not most of them come from sites like fiver.com, where you can pay someone 5 bucks and they will record a video endorsing your product.

Forex Expert Advisors – Experts at Losing

Expert Advisor is a great name in terms of projecting an image of an expert, who knows what there doing. When you trade currencies however, a Forex Expert Advisor is only an expert at generating losing trading signals and losses for your account and most sold under this name are simply scams.

Do Any Forex Robots Work?

There are of course mechanical trading systems which do make money but not the amounts claimed by the scam products. 

The legitimate Forex trading system seller will have a realistic track record and periods of draw down. They wont use the word expert or robot, to describe their trading system - it will just be called an automated trading system.

Myth and Reality of Algorithmic Trading Systems

There are always people who want to get rich with no effort and it applies in all walks of life – not just trading currencies online. The person who wants to learn how to trade currencies and is serious about making money will ignore these scams and focus on getting a good Forex trading education. 

The serious trader like the serious businessmen, knows he needs to learn the right information and use it, to build a trading strategy which is logical, based on reality and then, he applies it with discipline forlong term profits.

There will always be traders who believe in short cuts to success and secrets which can give them trading success and there are a huge amount of marketing companies to satisfy them. They sell secrets systems which are supposed to be based on artificial intelligence, neural networks or complex algorithms and the naïve trader believes them.

Final Words

If you want to make money trading Forex markets, ignore the huge amount of Forex trading robot scams, get yourself proper training and an education and you can enjoy, long term Forex trading success.