Take Cover, Here Come The Robots
October 9, 2009 by admin
Filed under Featured, Forex Information
If you ever hear someone telling you that they have made a tidy profit in stock trading with the help of a robot, you may well be tempted to smile sympathetically at them, say “Really? That’s nice!” and move on to other business. However, it might be worth asking some more questions, because there are a number of people doing exactly what your friend has told you about. Bear in mind that this is the Internet, and Internet activity is always heavy with metaphors, so in reality your friend probably hasn’t been taking stock tips from C3PO. What they have been doing, in all likelihood, is using a stock market simulator to get tips on how to trade based on market patterns.
Do these simulators, or “Forex Robots” actually work? Honestly, it is difficult to give a full answer to this, but the shortest, simplest answer is “Yes, sometimes”, or perhaps more accurately “it depends which one you use”. At the start of the vogue for using these predictor programs, there were only a few and they were, generally, quite accurate in their predictions. As time has gone on, there has been a recognition of the lucrative nature of marketing a Forex Robot and as a result some people are, quite cynically, marketing ones which have no more predictive capability than you, your best friend or even your pets. These generaly come with a well-hidden but quite sweeping disclaimer at the point of offer, so look out for them.
Some Forex robots do have a good track record with predictions. However, to get one that works based on anything more than a fairly shallow analysis of limited information, you will need to pay for it. There is a lot of data involved in Forex trading and a shallow analysis could point you in any one of a number of directions, all but one of which would be incorrect. If you are to use a robotic prediction program, bear in mind who is giving you the information and what credentials they have to pass it on. Chances are, in many cases, that the only person who will make money from what they are selling is the salesman himself.
