Comments on: Paid Forex Robots — Why I Avoid Them? http://www.earnforex.com/blog/2009/09/paid-forex-robots-why-i-avoid-them/ My Forex experience and some Forex related information that might be useful to other traders Sat, 11 Feb 2012 18:14:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Andrei http://www.earnforex.com/blog/2009/09/paid-forex-robots-why-i-avoid-them/comment-page-1/#comment-152862 Andrei Mon, 28 Sep 2009 13:01:39 +0000 http://www.earnforex.com/blog/?p=1641#comment-152862 That's not only an additional income but a lot of additional problems and commercial risks to set up a sale of such software, while using the Forex robot to trade should be bringing unbelievable profits in short periods of time (or so the advertisements tell us). Those are non-comparable sources of income. That's like to win a million dollar lottery and continue working in McDonalds to "pay my living costs". That’s not only an additional income but a lot of additional problems and commercial risks to set up a sale of such software, while using the Forex robot to trade should be bringing unbelievable profits in short periods of time (or so the advertisements tell us). Those are non-comparable sources of income. That’s like to win a million dollar lottery and continue working in McDonalds to “pay my living costs”.

]]> By: Phil http://www.earnforex.com/blog/2009/09/paid-forex-robots-why-i-avoid-them/comment-page-1/#comment-152855 Phil Mon, 28 Sep 2009 10:24:44 +0000 http://www.earnforex.com/blog/?p=1641#comment-152855 I don't quite agree with the first point-you have no idea if the sellers use the system themselves or not. As a businessman and entrepreneur myself I know that if I had a formula for anything I know that it has value. If something has value it can have a price put on it. Sure, I can make tens of thousands trading my system and I will do. But I can also make an extra few thousand selling that system to other people. That could pay my living costs leaving me free to use my trading profits for extravagances. I think anyone who doesn't do that is missing out on additional income. And there's the argument of 'diversifying' - relying purely on trading profits isn't a good strategy. Supplementing that with any other venture is good sense. I don’t quite agree with the first point-you have no idea if the sellers use the system themselves or not.

As a businessman and entrepreneur myself I know that if I had a formula for anything I know that it has value. If something has value it can have a price put on it.

Sure, I can make tens of thousands trading my system and I will do. But I can also make an extra few thousand selling that system to other people. That could pay my living costs leaving me free to use my trading profits for extravagances.

I think anyone who doesn’t do that is missing out on additional income. And there’s the argument of ‘diversifying’ – relying purely on trading profits isn’t a good strategy. Supplementing that with any other venture is good sense.

]]> By: rick horsely http://www.earnforex.com/blog/2009/09/paid-forex-robots-why-i-avoid-them/comment-page-1/#comment-152685 rick horsely Sat, 26 Sep 2009 09:46:08 +0000 http://www.earnforex.com/blog/?p=1641#comment-152685 I agree ... good point Michael. Believe it or not I've found FAP Turbo to be working for me. Now this certainly needs clarification ... it is certainly NOT doubling my money every month as claimed. It does however seem to average about 1-1.5% per day over the past 3 months. But not with the default settings. I've been using the settings from the fap turbo expert guide instead. The guide seems to quite genuine about risk and realism and how to manage it properly. I've tried most of the other "popular" ones but never managed to get them tweaked enough to show a good expectancy over time. rick I agree … good point Michael.

Believe it or not I’ve found FAP Turbo to be working for me. Now this certainly needs clarification … it is certainly NOT doubling my money every month as claimed. It does however seem to average about 1-1.5% per day over the past 3 months. But not with the default settings. I’ve been using the settings from the fap turbo expert guide instead. The guide seems to quite genuine about risk and realism and how to manage it properly.

I’ve tried most of the other “popular” ones but never managed to get them tweaked enough to show a good expectancy over time.

rick

]]> By: Andrei http://www.earnforex.com/blog/2009/09/paid-forex-robots-why-i-avoid-them/comment-page-1/#comment-152595 Andrei Fri, 25 Sep 2009 09:30:08 +0000 http://www.earnforex.com/blog/?p=1641#comment-152595 Good point, Michael! Do you mind telling us what paid robots do use? Just names, please, no need to give the links :). Good point, Michael! Do you mind telling us what paid robots do use? Just names, please, no need to give the links :).

]]> By: Michael http://www.earnforex.com/blog/2009/09/paid-forex-robots-why-i-avoid-them/comment-page-1/#comment-152593 Michael Fri, 25 Sep 2009 09:14:12 +0000 http://www.earnforex.com/blog/?p=1641#comment-152593 I use a few EAs/Robots that do earn me additional income. However, they do not earn the levels of return indicated in their advertising material unless you are prepared to take very high risks. Too dangerous for my liking! The key is to test the settings, and brokers, to get the best out of them, but grow your account little by little with good money management. I achieve 2% daily on average with robots. The other thing I have noticed on all the forums is that most users of the EAs are totally clueless about forex. Stupid questions such as "what is spread?", "what is a pip?" tend to give this away. These people are just looking for a get rich quick scheme, and with no clue on money management seem to lose all their money in a couple of days. I seriously believe that only abput 1% of those who purchase robots do their homework and with a prudent approach can make money from them. EAs are axactly what they say. Advisors, thought the expert bit can be questionable in some cases! At the end of the day you still have to understand the markets and work at it and out in a lot of effort. There is no such thing as a free lunch. I use a few EAs/Robots that do earn me additional income. However, they do not earn the levels of return indicated in their advertising material unless you are prepared to take very high risks. Too dangerous for my liking! The key is to test the settings, and brokers, to get the best out of them, but grow your account little by little with good money management. I achieve 2% daily on average with robots.

The other thing I have noticed on all the forums is that most users of the EAs are totally clueless about forex. Stupid questions such as “what is spread?”, “what is a pip?” tend to give this away. These people are just looking for a get rich quick scheme, and with no clue on money management seem to lose all their money in a couple of days.

I seriously believe that only abput 1% of those who purchase robots do their homework and with a prudent approach can make money from them. EAs are axactly what they say. Advisors, thought the expert bit can be questionable in some cases! At the end of the day you still have to understand the markets and work at it and out in a lot of effort. There is no such thing as a free lunch.

]]> By: Andrei http://www.earnforex.com/blog/2009/09/paid-forex-robots-why-i-avoid-them/comment-page-1/#comment-152384 Andrei Wed, 23 Sep 2009 18:28:39 +0000 http://www.earnforex.com/blog/?p=1641#comment-152384 Not all (even not the majority) of the Forex market participants are speculators that trade for the profit. The Forex market's primary objective is the exchange of currencies. Not all (even not the majority) of the Forex market participants are speculators that trade for the profit. The Forex market’s primary objective is the exchange of currencies.

]]> By: Javier http://www.earnforex.com/blog/2009/09/paid-forex-robots-why-i-avoid-them/comment-page-1/#comment-152382 Javier Wed, 23 Sep 2009 18:05:41 +0000 http://www.earnforex.com/blog/?p=1641#comment-152382 You forget the most important point: Heisenberg principle (abstracted). Even if you had a perfect prediction of the market, a simple reasoning shows that it would be cancelled out by itself as other market participants started using it, since the very edge is the information asymmetry between participants. As more people had these robots (and assuming they perform 100%), the number of loser participants would be scarce, reducing the benefit. In the limit, everybody making perfect decisions, there would be no market at all (everybody selling/buying at the same time). You forget the most important point: Heisenberg principle (abstracted).
Even if you had a perfect prediction of the market, a simple reasoning shows that it would be cancelled out by itself as other market participants started using it, since the very edge is the information asymmetry between participants. As more people had these robots (and assuming they perform 100%), the number of loser participants would be scarce, reducing the benefit. In the limit, everybody making perfect decisions, there would be no market at all (everybody selling/buying at the same time).

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