No single type of product has grown in popularity as rapidly as auto pilot Forex trading systems. Just the thought of having your own personal Forex trading robot make your trading decisions for you, place your trades, and allow you to do nothing is extremely appealing to a large number of beginning Forex traders.
Here are a number of things to consider when deciding whether or not to use and auto pilot Forex trading system.
Broker Forex trading platform compatibility — in order for your auto pilot Forex trading system to function properly your Forex broker will need to have a platform that is compatible with your Forex robot. In most cases this means running MetaTrader, which most Forex trading robots are built for.
The auto pilot Forex trading system developer — clearly the most important thing about any Forex trading system is whether or not it works. Forex trading systems simply cannot be created by anyone, they must be created by people with experience in Forex trading as well as Forex trading system development. If a trading system developer isn’t experienced they can easily create a sense of false hope by designing a trading system which only worked for a particular period of time. For instance, if a system developer has focused on designing a system that works well in a bull market, the system will most likely fail miserably when a bear market comes around.
Need to know the systems logic — if you’re the type of Forex trader that must know how and why your Forex trading system functions then and auto pilot Forex trading system may not be for you. Most auto pilot Forex trading systems are “black box” systems. This means that the system logic is known only to the system developer and not to you the Forex trader. Black box systems are not ideal for those who actually are smart enough to want to learn to trade Forex. Without knowing anything about the Forex trading systems logic you are essentially flying in the dark.
Trading system track record — a lot can be learned about a Forex trading system by looking at its track record. The track record is also known as the performance summary or performance report. This report contains such information as win loss ratio, total net profit, maximum drawdown, etc. The more detailed the track record is the more information we will have at our disposal to be able to evaluate how good a Forex trading system is. Keep in mind that short-term track records are basically useless. A two or three month track record or even a year track record is simply not long enough to provide us with the necessary insight into a trading system.
In theory, an auto pilot Forex trading system sounds like a great idea. In reality beginning traders become more fascinated with the thoughts of automation and freedom from actually having to actively participate in trading, that they fail to evaluate the most important criteria for Forex trading success.
