Should you use an automated currency trading system? This article is all about how to choose the best currency trading robots and what gains you can expect.

The vast majority of automated currency trading systems sold on the internet are junk and they are designed by marketing companies, who employ programmers to test system rules over historical data and make a profit. The problem is these systems are bent to fit the data and as no two data sequences ever repeat the same way again, the system collapses in real time trading. If you want to spot a losing system, simply follow the tips below:

Spotting a Currency Trading Robot that Losses Money

If a trading system has claims any of the following it's likely it will lose you money

• A track record that shows huge gains with little or no drawdown – You don't get Big Gains without drawdown and that's a fact. If you see thousands of percent in gains and under 10% drawdown, the system will lose

• Any system that claims more than 90% accuracy or telling you it can predict the future with accuracy is also lying

• Also you should look at the developers background and see if you can find anything on him, normally you can't and the mysterious genius behind the system doesn't exist

- A track record which has the word simulated on it, is demo account results or provides figures from the vendor without substantiation

How to Spot a Good Currency Trading System

So how do you spot a good currency trading system and what gains can you expect?

• The best currency trading systems will return you 50 – 100% per annum and the drawdown will normally be 25 – 40% for at least a few weeks or possibly a couple of months at some point. While this is a great return, you can see system trading is long term

• The accuracy figure is irrelevant and good systems tend to win 30 – 50% of the time but the profit per trade is normally far bigger than the loss and this means it can still make huge gains

   

• Look to see the system has been developed by a real trader and look up their background on the web

• Only accept a track record which is in real time supported by checks from an independent ratings agency, audited account or broker statements

• Look for the logic to be revealed and don't trade so called “Black Box Systems” where the logic is not revealed, you need to understand the logic the system is based on to trade it with confidence and discipline

   

Is Automated FX Trading For You?

Automated currency trading suits the trader who wants to spend 30 minutes or less a day on their trading and is of a disciplined nature and wants to make a great income long term. If you want to spend as little time on your trading as possible and want to make great gains and your not interested in the excitement of currency trading, a good automated currency trading system can help you enjoy trading success.

Just make sure when trading a system, you get the right one and you can find them by following the simple tips in this article.

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