Since the advent of forex trading systems also called “Forex Robots” on the web a few years back, people have become curious as to whether they actually work.
Going out and purchasing the first highly advertised and seemingly cheap Forex Robot is strictly ill-advised. Expert Advisors (that run inside a trading software) are comparatively new and many of the marketed Forex Trading systems are hasty formulations that do not give out results. With these products there is usually no option of trial testing before buying, and the money back guarantees some claim to offer are as proficient as the product itself.
There are Forex Robots out there that do actually give outcomes and perform employing the strategy of effective risk management. They realize that successful Forex Trading is beyond merely the prediction and execution of winning trades all the time. Prediction rate of a trade is never 100%. So the EA’s in these systems make small trades frequently. This is to ensure that the trade direction can be changed with a comparatively smaller loss when things are not going as predicted thus preserving the profit acquiring strategy.
The aim here is to bring home the idea that a relatively greater profit can be made by trading this EA rather than marketing it. Consider the following scenario;
Banks generally lend money with ‘per annum’ rates. Forex trading account offers the same lending rate with a slight benefit as Forex provide with wholesale rates while banks generally charge retail. Depending on the trading strategy you used, you can get a profit of 1-3% using Forex. On every trading day, the EA I use produces for me 1-2 such trades. So I end up earning at a daily rate by borrowing at an annual interest rate.
Now basing on a daily average compounding rate of 2%, trading 5 days of all 50 weeks of the year, $1000 would turn into $141,267.72 the first and mount to $19,956,569.14 the second year.
The loss and profit in a trade varies, so I cannot compound perfectly that I will build a fortune of $20 million in a time period of 2 years. But even a small division of this much can be worthwhile for an average worker barely making a life out of some insignificant hourly pay. On the other hand even those who’ve always wanted to spend time with families and do all those things that usually require a lot more time and money can use this income replacement method effectively. With Forex Auto trading, you can actually make your dreams come true!