Today there are more automatic Forex trading programs than ever sold online and most of them, promise you that you will get rich with no effort. They normally offer you a track record that looks to good to be true which shows huge growth, with very little in terms of draw down and the cost of this life long income? A mere 200 dollars or less. If you want to spot currency robot trading scams simply follow the enclosed check list.

If you see the following statements then, you are likely to be seeing a scam.

Promises the Forex Robot can Predict the Future with Science

No one can predict what will happen in the future because Forex markets are a game of odds not of science and its a stupid statement because - if you really could predict the future with scientific accuracy, we would all know the price in advance and there would be no market.

Claims of over 90% Accuracy with the Systems Trading Signals

Many robots claim even better accuracy than 90% and I have seen one automated software package claim no losses at all but the top traders in the world don't trade with over 90% accuracy and a cheap automatic Software has no chance of doing so either.

Most successful traders have success rates of between 30 – 50% but they still make money, because there profits are so much bigger than their losses.

Triple Digit Gains or More and Draw Down of Less Than 5%

No traders I know or have read about and this includes the best, claim 100% profits with under 5% draw down but some robots claim a 1,000% or more and less than 5% and the claims are rubbish.

With big gains, you get big draw downs and that's a fact.

Track Records with No Audit or Neutral Verification of Gains

Anyone can make big claims but the key is have they made any REAL Forex profits that are actually verified and all the robots who make unrealistic claims have never made the money they claim – so what do you get?

Most are based on back tested simulations over historical price data, knowing all the closing prices which is so easy a child could do it. You should pay no attention to claims that back testing will yield the same gains in real life as the CFTC disclaimer says:

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

And:

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. Hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.

You will find the above on most robots which make big claims. Others to get around the problem that traders don't trust simulations claim live results and then produce no audit – You have to take the word of the person selling the system!

Reputable Forex Robots

You will find reputable Forex trading robots and they will normally, present even balanced copy pointing out the risks as well as the rewards and not claiming that you can make money with no draw down. Furthermore, they will present an independent verification of results either from a reputable rating company or via an audit.

Final Words

There are numerous currency trading robot scams on the net and while the above points will help you spot them, all you really need to remember is - “if it looks to good to be true it probably is” and if there is no audit or verification of the Forex software's track record pass it by