Forex Trading Robots - Why Banks and Serious Traders Don't Use Them
Author: Monica Hendrix
Forex trading robots are sold as an easy way to make money with no effort so, why don't banks and major dealing houses sack their dealing teams and save millions in annual salaries - Why? Because Forex robots lose money...
It never seems to occur to traders that the Forex robots sold heavily online, say they have better track records than the world's top fund managers and yet, anyone can get instant wealth (if you believe the sales copy) by spending just a few hundred dollars. Doesn't add up does it?
The reality of Forex Robot trading is that users quickly lose money, because the robots don't work and are based on unsound logic.
They use back tested simulations over historical data and then a make hypothetical track record of gains but this is easy, as you know all the closing prices and when they trade forward not knowing this key data, they fail and lose money.
Because these systems have bent a track record to fit the data in hindsight, don't have any proper money management rules. Losses are huge and as money management is the key element of successful Forex trading, a wipe out of equity soon occurs.
As yet, no major banks, brokerages or fund managers, have sacked there dealing teams on millions of dollars in salaries and replaced them with a team of Forex robots.
The buyers of these robots tend to be naïve or greedy investors, who dream of instant riches and are rewarded with a wipe out of equity.
If you want to win at Forex trading, get yourself a decent Forex education, learn skills and your efforts will be well rewarded.
Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-robots-why-banks-and-serious-traders-dont-use-them-771508.html
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