After having a considerable hand on experience on a forex robot or an expert advisor (EA), you may discover the settings that may have proven to give you optimal actual returns using the EA. You may receive a decent 13% ROI on the trade using a robot. This accounts for 30-40% per annum. But don’t settle for that as yet. These trading returns do not reflect the full capability of the robot. You may settle for trade with an approximate ROI of 50% which renders a per annum profit of about 400% even while keeping aside the factor of compounding. By considering the possibility of achieving a return of 1% every trading day and adding to the account balance by continual increase of the lot size which delivers profit, makes achieving a per annum of 400% theoretically possible.
A compound interest of 2% for every trading day would make a $1000 investment into nearly $20 million over 2 years. Naturally via a robot the compounded interest is not as obvious, calculated or stable as is the interest calculated in banks. Generally it takes time to reach to a position where you start getting the profit from a trade, so the compounding effect suffers a lag. This signifies that the balance in an account would grow bumpily rather than steadily. Nonetheless, the compounding is there no matter how much. And considering the fact of getting a return of even, say, a million dollars over 2 years for an investment of $1000 as capital, is an astounding return.
Taking into account the obvious benefits of forex trading, there are still people who do not want to dirty their hands in this business. The hesitation may be based on some invalid psychological grounds or may be due to the risk forex trading involves. It is true that the trade is risky but given the output that may come your way the risk is not too much. The time and energy required in installing and supervising the robot can make some people quit the idea of going for it. It is true that the initial setting up process is not as easy as placing your money in a savings account that offers high interest. But beyond this first step of installation, the energy required is far less than the manual trade of stocks. As a matter of fact, the lifestyle that is generally believed to be associated to people who build a life by working in the financial market is not even required. You can keep your day time job and not stay up at nights observing the market trends, looking for opportunities to buy or sell. All required is a few minutes of your day to merely check the closing of stocks and adjust the lot size in accordance with the existing balance in the account.
An additional reason for the hesitation on part of an average worker could be of not having the determination to bet the hard earned two weeks salary of $1000 right away. This hesitation is valid for a person who has credit card debts, loans, mortgage etc. to pay off. And this trade certainly cannot be pulled off by investing $50 or $100 due to the risk management profile built for an account. Consider a situation in a market where the minimum lot size happens to be 0.01 corresponding to currency of $100. Over a period of time, a robot has, say, ten 0.01 trades open. In that case even a variation as low as10% would clear all your balance. And since reaching to this situation is not what a broker wants so your trades would be closed at a loss long before that.