Trading forex online is a complicated venture because the forex market itself is complicated as well as constantly changing. Since more and more everyday people enter the retail forex market as traders, wishing to make some much needed money, to invest, save for their old age or supplement their current income, these people need some sort of expert advice or guidance in order to be able to place trades, since they do not have the adequate previous knowledge or experience.
Here is where automated systems, such as forex robots come into play. These could have been a useful tool under certain conditions, but alas more often that not they are just another great way of scamming unsuspecting forex traders. It is possible for forex robots to be profitable but you should always remember that you cannot consider them as a “set-and- forget” easy solution to trading, although they are usually being marketed as such.
You need to bear in mind that robots must be monitored by you frequently and closely that even then they are still likely to be yielding both long profitable runs as well as long losing strings or be hobbling in middle ground, simply because they are usually built for a specific set of conditions.
Forex robots are automated programs that enters trades on your behalf based on technical signals that are derived through mathematical algorithms applied to past price history. However, since the highly volatile market environment means that prices can either go up, down or sideways, relying on an automated forex robot could result in huge loses since the programs themselves cannot recognise and/or adjust to sudden changes to the market conditions and the trading environment.
The truth is that provided they are watched and managed closely the limitations of forex robots not being able to adjust to the dynamic market conditions due to their pre-wired thinking could be perhaps overcome.
Therefore, the scam when it comes to forex robots is not usually to do with the programs themselves but rather with the misleading and cunningly inaccurate way in which they are marketed.
Those trying to sell you an automated forex robot will price it affordably in order not to deter you from signing up to it but at the same time they will have you believe that the robot is some king of all powerful “holy grail” that will instantly lead you to huge profits through its accurate trading action. Moreover, they will also try to convince you by citing an impressive record of past successes for their automated robot.
The scam signs here are obvious to those applying simple common sense and having the cool head to recognise that they did not just discover an incredible bargain. For starts, if the robot creator did indeed have such a sure money making solution, then why would they be willing to share it with you for just a small fee?
Moreover, how can you be certain that the past success record they claim to have is real and not made up? Even if it is real, it is no guarantee for similar future successes since the several variables in the dynamic forex market keep changing.
In a nutshell, unless you have significant experience and know how as a trader to be able to remain in control you should stay away from automated forex robots as the chances are far greater for you to fall victim of scam by using them than making any kind of decent profits.
Allowing an automated program, that has no brain, to take full control of your money and take all your trading decisions on your behalf is a certain disaster recipe.
Forex robots can only be a useful tool provided you posses the adequate understanding of how the market environment works and how the robot program itself works to be able to intervene and make the necessary tweaks and adjustments to it as the market conditions change.
So, to be safe, until you have mastered those two, it is safer to keep away from automated forex robots to avoid being scammed.