Forex Trading Software - 4 Claims Vendors Make Which If You Believe, Will See You Lose

In terms of Forex trading software you need to beware of 4 claims made by most Forex vendors as they are simply myths and will see you lose money. To select the best automated Forex software use the checklist enclosed.

You never see a system sold which doesn't claim big gains in the past and you need to start with this key point

1. The Software has made Huge Gains in the Past

To find this out, you need to look for audited performance figures from a third party source.

You will see a lot of cheap software costing a hundred dollars or so, claiming they can make triple digit gains but there normally back tests on paper or they give you unaudited figures from themselves. Always get an independent audit, by a respected third party organization, over at least two years before buying any system.

2. The Software can Make Big Gains with Low Drawdowns

I have seen automated software packages claim they can make 100% + per annum with drawdown below 1 - 2%, this is pure fantasy and its a known fact that in Forex trading if you have big gains, you will have big drawdown at some point.

Not even the top traders in the world, could manage to make 100%+ gains with so little drawdown, so don't expect a hundred dollar software package to do it either.

3. The Software can predict with 90% Accuracy

You normally see a winning trade ratio of over 90% but the only way they can do this is on back tested figures.

Again the best traders in the world, on millions in salary don't do this so do you believe a $100 piece of software can? No one can predict what Forex markets will do in the future and never will be able to because humans are not predictable!

4. The Software Limits Risk

All the cheap automated Forex Software packages I have seen, simply do not have proper money management. They either trade to much with stops inside random volatility, take to much risk per trade, or cut profits to soon. Far from being a low risk way of trading the lack of good money management, means they are odds on to lose.

Are there any Good Packages?

Yes you will find some good ones which don't make claims like the above. These systems can give you solid gains over time, most cost more than a few hundred dollars and don't have hyped copy but you can find some really good ones if you do your research.

So avoid any which make the above claims and remember the saying - if it looks to good to be true, it probably is.