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Common misconceptions related to functioning of forex robots

Published on 8 January 2022

Several forex robots are present nowadays, but many of them come with disclaimers that state that their software results depend on simulated results. Therefore, if you are looking at similar forex software, we would advise you not to use it since the software has been utilized for actual trading.

Forex Robots and Results

Several software provides disclaimers mentioning limitations with regards to the simulated results & that such results don’t correspond to actual trading. Additionally, since no trading occurs, the achieved results could be over or under-compensated for the likely impact of any particular forex market factors such as low liquidity.

Most such trading programs are based on simulations and designed based on hindsight. It will be hard to find a representation that tells that at the time of real trading, a person will achieve similar profits as the software makes at the time of simulated runs.

 

Misconceptions regarding robots

You will find several misconceptions about forex robots & in the next section, let us look at a few of those misconceptions.

  1. The first misconception about forex robots is that they need to be very clever, but it has to be such that they can utilize the right trading signals.
  2. Next misconception about them is that software working on predictive systems function well like those relying on Gann or Fibonacci, but such systems do not assure a win every time. In addition to it, it is quite hard to predict price movements & assuming those predictive systems can give good results can cost you dearly.
  3. Another misconception about them is that a person can evade drawdown periods by utilizing these forex robots. But it is worth mentioning that several well-known& reputed forex traders go through drawdowns as well, and these are hard to avoid even if they are using software like the forex robots.
  4. The Last misconception is that a person needs only to start such an automated system & instantly begin earning money. But this is not what happens when you use an automated system. In almost every available trading system, it is necessary to provide details about your choices as well as preferences plus show restraint in using the system. Only then good results can be expected.

We now know that many software is present for affordable rates. Still, many of them hardly function in any actual world scenario. If you plan to gain by utilizing a working forex robot that gives results, then it will be necessary to invest & that investment goes into a few thousand dollars.

Additionally, you will find some free forex robot software also that are present in the market, and you can get them to understand how such software systems work and then only invest funds to buy good working software.

 

Conclusion

In conclusion, we can say that many forex robots claim a very high percentage of gains. Still, almost all such software relies on specific simulated results & in live trading conditions, it is certain that they will fail. Therefore, by properly studying the functioning of these systems & checking performance in live forex trading conditions, you will be able to select the right software.