October 20, 2008

Why Forex Robots Aren't The "Holy Grail"

You know what I would love, to be able to take one little pill and be able to eat massive amounts of junk food and never gain a pound.  And while we're at it, I want another pill that will make me irresistible to the opposite sex.  Oh yeah, here's one more for the wish list…  A pill that would give me six pack abs without ever having to set foot in the gym.

And when it comes to forex trading I want a forex robot that never has losses and makes me millions each year while I sit in my olympic sized pool sipping French champagne.  :-)

I am obviously doing this in a bit of a tongue in cheek manner but the truth is that there are a lot of people promising that their little pill will give these kind of miracle results.

Not too long ago there was a massive marketing campaign for a forex robot which showed that it never had a losing trade in something like 8 years.  Well this set off a buying frenzy and 9000 people paid for the little magic pill.

Guess what happened next?  The minute traders started using it it had losing trades.  How is that possible if it never had a losing trade in all those years?

I'll tell you how…

The people who have been flooding the markets with these forex robots are often not traders, but actually very clever marketers that realized they could make a killing by giving forex traders what they want - A little magic pill in the form of a trading robot.

Because they know that everyone secretly dreams of doing nothing and making piles of cash without any risk.

What they do next is create a system that has been overly-optimized so that it spits out jaw dropping results.  They do this by constantly tweaking the parameters until all losing trades are eliminated.  This is cheating and is totally misleading.  The bottom-line is that over-optimized systems always fail in the end.

And, think about this…  If you developed a forex robot that never loses why the heck would you sell it for only $97?  A bona-fide forex robot with no losers could easily be sold to a major brokerage firm or hedge fund for millions. 

The bottom-line is these slick marketers are appealing to our "get rich with no effort" desires.  Believe me when I tell you, I have purchased my share as well. :-(

Now heres's the crazy thing…  As traders we tend to be highly educated and very logical thinkers but…  Despite this, we get blind-sided when someone dangles the "Magic Little Forex Pill"  in front of us.  How can we be so silly to fall for it?

Simple, because we all want to believe that someone has finally "cracked the code". And why not…  It would certainly be the answer to our financial prayers and make our life a whole lot more fun.  :-)

It's time to stop chasing the "Holy Grail" and "Magic Little Forex Pills".  They do not exist!  At least not for $97.  What's more, even the best forex robots will have some losses and its just a part of trading.  If anyone boasts having no losses, then do what they said in the movie, "Forest Gump". 

 "Run Forest, Run!" 

About 5 weeks ago I emailed all my clients about a program called the "Black Dog".  It was only the 2nd forex program that I have personally endorsed in 5 years.  A lot of forex traders signed up and I have received a pile of thank you letters for referring this program.

Why?  Because the bottom-line is it works without all the hype and false promises.  It delivers a steady 70% winner rate without any big draw downs or drama.

Whats' better is that since I first recommended the program, Dave Atkinson the UK trader who created the Black Dog has just created another system that catches even more trades and has a slightly higher winning percentage.  So now you get 2 systems for the price of one.

Anyway, if somehow you are still  looking for the "Magic Pill" then please ignore this email, but…  If you want something that works as promised then this is worth at least taking a look at.  For more info…   http://tinyurl.com/5zv3tw

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