There are a huge number of Currency trading robots and Expert Advisor's you can buy and we review the major ones in our Forex Robot section of this site and the fact is all the cheap automated currency trading systems which cost under two hundred dollars and claim to give you a better performance than the word's top traders lose money. There are some good trading systems out there though and here we will look at why most automated software packages lose and how to find the few that win.

As the internet age emerged, so to did a huge number of get rich quick schemes and in all areas of finance including FX trading. They all make gains which are to good to be true; make a more money than the world's top fund managers, with less draw down, make no effort while doing so and the cost to you, is no more than a good night out at the bar. So why do they lose? Lets find out:

Simulated Back Tests Which Don't Repeat Due to Curve Fitting

All the heavily promoted track records, base there track records on back tests or simulations. This means they bend the system to fit the data and simply keep bending it until they get a truly extraordinary performance. One trader likened this to shooting at a barn door, blinded folded and then, going and drawing a circle around every shot, to make it look like a bulls-eye! No two segments of data, ever repeat in the same way again and these systems lose in real time trading.

Forex Robots and Money Management

When a track record is heavily curve fitted, the area to suffer is money management. An I have never seen any of the heavily promoted robots, have money management which is based on sound principles which means the trading system can't win over the long term – in short, most automated software packages take to much risk and eventually, the market blows them out the water.

Where's the Audited REAL TIME Track Record?

You get simulations and live results which the vendor says are true but the one thing you don't get is - an audited track record of real time gains by a reputable outside source. It should be obvious to any trader, that you don't get a better track record than the world's top fund managers with less draw down, for the price of a good night out. You don't see the evidence in terms of a real time trading record because there isn't one!

Automated Trading Software Which Makes Money

There are some systems that make money and if you look at the advertisement on the right side of this site, you can get a profitable currency trading robot for free; Richard Donchian's 4 Week Rule. The system is easy to understand works and will make great long term gains. Sure it has draw down but all the best systems do but follow it, focus on the long term and you will do just fine. If you want to buy a Expert Advisor make sure the track record has been audited and the source of the audit is revealed, so you know if it's from a reputable source.

Final Words

If you see a an automated currency trading system with a track record which looks to good to be true, chances are it is and the way to confirm your suspicion, is to look at the track record.

If you are looking for the best currency trading software, use the above check list and you will find the right trading system, to use in your currency trading strategy which will enable you to make some great trading profits in around 30 minutes a day or less.