Forex Robot Scams List

Forex Robot Scams List

The Great Forex Robot Scam

My ultimate dream would be a super intelligent forex-trading robot capable of making money around the clock. A machine that generates lots and lots of cash while I sleep, take holidays, wine and dine, and live a full life without financial limitations.

A lifestyle without limits!

Luxury cruises in the Caribbean, carefree shopping in Paris, my soft-top Mercedes sports, New York penthouse, private jet, and luxury private yacht anchored in Monte Carlo.

Just look at me now!

And yet, just a few short months ago I had nothing. Then I discovered the Forex Robot that enabled me to get started with just a few hundred dollars, push the start button, and wait for results. And wow, look at these results…all you have to do is buy this Forex Robot and you too can be part of this rich and famous lifestyle.

Still not convinced?

Of course not, so I go on to provide a list of backtest results to prove that the Forex Robot works, and I back this up with testimonials from “real” people who’s lives I have changed. I tell you about the years of research put into the Forex Robot, the list of guru’s that have revealed their secrets to me, and the sophisticated programming that makes “this” robot different from all the others that have let you down in the past.

You’re tempted, but still not sure, which is a problem because I cannot make the Forex Robot available to everyone. I have only a limited quantity available, after which this offer will not be repeated, so you had better jump onboard now or miss out forever.

What to do?

You have nothing to lose because I back my Forex Robot with a 60-day money back guarantee, so you can trial it and judge for yourself. If you are not completely convinced I’ll give you your money back, no questions asked.

Gotcha!

So you pay for, receive, and install the Forex Robot on a demo account. You read, and read again, the user guide, making sure that everything is set-up just right, and you wait for results. A few trades later you have some winners and losers, but you expect this to be the case because the user guide said so. A few weeks pass and you are still getting winners and losers, but have not yet experienced the steady gains shown in the backtest results.

Maybe your settings are wrong?

A flurry of emails back and forth between you and the Forex Robot vendor explore the settings, the timeframes used, the currency pairs traded, your broker spreads, and 101 other possibilities. Over the next few weeks you implement suggestions given, and over this same period you receive the vendors’ newsletter with more testimonials, hints, and tips, and although you have had some really good trades, you have also taken losses and your account seems to be going backwards. You persevere convinced that you can take those “really good trades” much more often than those losing trades, but still your account goes backwards.

After 3-months of frustration, and a blown account, you give up. If this is your first experience with a Forex Robot you most likely feel that you are not cut out for forex trading, and that this negative experience is in some way connected to your inability to grasp what others seem to be grasping quickly, and successfully. Of course, it’s too late to request a refund.

You dummy!

How can so many others achieve such outstanding success with the Forex Robot, the very same Forex Robot that you had at your disposal and yet failed to use correctly? Are you so dumb that you cannot grasp this simple concept?

Hang on a second. This was supposed to be a robot, right? It was supposed to automate the task of forex trading “while I sleep, take holidays, wine and dine, and live a full life without financial limitations”, right? I had the impression that this was a “set and forget” forex trading system. Isn’t that what I purchased?

Yes you did, but that’s not what you got!

You paid for the Forex Robot, and that is exactly what you got, but the robot failed to deliver on its promise to you. Yes, it did trade automatically. It opened and closed trades without you lifting a finger. It made some winning trades, and it made some losing trades. It done everything it was supposed to do except make you a steady and consistent profit capable of growing your account and giving you the lifestyle promised.

Why?

In 1977 our flight landed at Singapore airport on autopilot. It was one of the smoothest landings that I can recall, but what if something had gone wrong? You guessed it, a human would have taken over control and landed the aircraft manually.

Today, millions of passengers fly around the globe every day on autopilot. The aircraft computer is configured prior to take-off to take account of things like weather conditions, jet streams, and navigation, ensuring the smoothest flight possible and most efficient use of fuel. The pilot can take-off manually, switch to autopilot to manage the flight, then switch to manual control for landing, although a modern aircraft can quite literally fly entirely on autopilot, including take-off and landing.

So why do we need pilots? Because a computer, no matter how sophisticated and powerful, remains to this day far inferior to the sophistication and power of the human brain. Only the human brain has the power of intuition, instinct, thought, and perception. Would you board an aircraft without a pilot?

Would you trust your money to a robot?

Effectively a computer program is a series of decision gateways. At each gateway a decision is made whether to proceed or stop. If a condition is not met, a decision to stop is made. If a condition is met, a decision to proceed is made. So by programming a series of conditions (parameters) we can control what happens. These parameters can be in the form of a series of Technical Analysis indicators like Moving Averages, Relative Strength Index, and Stochastic, and by grouping these together into a series of gateways we can control when to enter and exit a trade. For example, at the first gateway we ask if the fast moving average has crossed the slow moving average. If yes, then proceed, but if no then stop. If yes, we move to the second gateway and ask if the Relative Strength Index is 50 or more. If yes, then proceed, but if no then stop. If yes, we move to the third gateway and ask if Stochastic has crossed up. If yes, then proceed, but if no then stop. If yes, then all parameters agree, and a buy order is opened on the assumption that an uptrend is underway.

Simple. Except that our program has no way of knowing whether an uptrend is truly underway, or if prices are simply within a sideways ranging market. Both market conditions will trigger a buy order in this case. One will generate a profit, whilst the other could result in a series of losses.

This is the risk you take when trusting your money to a robot, and why forex robots have such great difficulty in delivering consistent long-term results. The removal of human intelligence, and our ability to think, perceive, and reason, leaves your money exposed to a machine that blindly follows a set of pre-programmed instructions regardless of changes occurring within the environment in which it operates.

And the environment does change frequently. Think about your GPS navigator, and what happens when a new road is opened, or a two-way street is changed to a one-way street, or a road is simply closed. Imagine using your GPS to drive on autopilot? Now look at the forex environment. Central banks change policy settings, the USA enters recession, trouble in the Middle East sparks oil price rises, earthquake hits Japan!

The truth is that as a forex trader you must constantly rework your navigation to ensure safe passage. A robot can’t do that.

So what will work?

Is there real money to be made trading forex? Yes, absolutely, but first you need to know how to combine automation with human input to control your money effectively. To do this you need trading software similar to an aircraft autopilot, which allows you to take-off and land, but which you can switch to autopilot to control the flight once airborne.

In the forex market there are Robots and there are Expert Advisors. A Robot is simply an Expert Advisor that has been automated. Both are software programs that operate on the Metatrader 4 Client Terminal (a forex trading platform) that is free to download.

Your starting point is an expert advisor that gives you control and authority over which trades to enter, when to enter, and how much capital to risk. You decide when it is time to enter a trade, not the Expert Advisor. You instruct and authorize the Expert Advisor, thus maintaining ultimate control over your money at all times!

About the Author

My trading experience extends back to 1983 when I began trading financial futures contracts. Over the years I have traded all types of futures, stocks, options, and forex, and during that time I have seen many scam newsletters, subscription services, and forex robot operators come and go. I have also come across some top performing legitimate vendors. My goal here is to connect would-be traders to legitimate sources.

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