If you look around online you will see everyone talking about Forex robots and saying you can make huge gains with no effort and most new Forex traders use software to trade but what is the reality of trading with Forex software? Lets find out.

The advantages of using an automatic buy and sell software program to trade currencies are:

You don't have to do any real work after setting up the system, you just let it trade via it's rules.

Because the software has set rules your emotions cannot get involved if you traded yourself.

Finally, you can make big gains with the best robots.

So what are the disadvantages and limitations of using software?

The first disadvantage is that most of the Forex software sold online is junk. You get people who have never traded in their lives selling software packages they claim can make huge gains with low risk but they never present, a real time track record of gains to support the track record. You get simulations going backwards ( knowing all the highs and lows) or figures which are unaudited.

Beware of Sharks

If you see a currency trading software program with a track record of huge gains and low risk, costing under $200.00 – pass it by as the old saying is:

“If it looks to good to be true it probably is” and that applies to the bulk of the software sold online.

You can get good automatic currency trading systems and there is a free one on this site which works , called Richard Donchians 4 week rule and you will get some programs which present real time track records but you have to keep in mind the following points when using these systems

What to Expect When using Currency Trading Software

ALL systems will have long periods of draw down which can last many weeks or even months – sure they make gains long term but you must be patient and ride out these short term periods of losses

The bigger the gain, the bigger the draw down. For example, the best robots make between 50 – 100% and you can expect a draw down at some point of 25 – 50%. Don't believe anyone who tells you that you can make big gains, with minuscule downside volatility – its not true.

As you can see, if you are careful and get the right system and have confidence in it and follow it long term, you can make a great long term income but you don't get rich overnight.

Fantasy and Reality

As for the robots and software programs telling you you can enjoy over 90% accuracy with your trades, make several hundred percent in profit, with draw downs below 10% - There likely to lose you money because the track records are not real money.

Final words

Software has its advantages and limitations and if you keep in mind the above points, you can decide whether you should use a software program or trade for yourself