You dont have anything to lose What a fallacy !

In the time in which I have been reviewing and using automated trading systems I have come across a countless number of commercial expert advisor sellers and their websites. I would have to say that from all the things they say, one of the worst and most dangerous is their ultimate catch phrase "you dont have anything to lose". Today I decided to write a post about why this phrase is not only totally untrue but also exceedingly dangerous for new traders who dont know anything or too little about the way in which automated trading works.

First things first. The reason why this statement has become so popular amongst expert advisor sellers is because most of them offer money back guarantees. If you dont like their software after a given fixed period of time whatever money you used to buy the EA will be given back to you. So nothing to lose then ? right ? You buy the EA, you use it, if you dont like it, youll get your money back, no harm done, if it is junk you will get your money back.

Well my friends, this is a big mistake ! You have to take into account all the risks you expose yourself to when you buy an automated trading system. Since the objective of most people is to run the expert advisor on their live accounts for long periods of time, the long term profitability of the expert advisor plays a huge role. Take into account that most commercial junk experts out there are engineered to give you short term profits with a huge market exposure that will eventually cash on your account. If you are trading with your money and you lose it, you risk losing much more than the purchase price of the EA. There is no way in the world in which you should be able to know if the EA is long term profitable with just 6 weeks of testing which is what most of these experts offer as a long term guarantee.

So lets see. Joe buys the Superhype EA which has a 6 month guarantee. Joe trades this EA on demo for the 6 weeks and the expert has actually made significant profits, so no worry, Joe is satisfied with his product and does not want a refund. Now, Joe puts his real money on this EA and at month 3 of running it live the EA goes into consistent draw down and in month 5 Joe is down 85%. Joe lost the 100 USD that Superhype costed him plus 1000 USD he has on his live account. Nothing to lose ? Think again, you have everything to lose when you expose yourself to any automated trading system. The only thing that can give you assurance that this will not happen is to have an EA that fulfills well established criteria for long term profitability, something most commercial experts out there do not do (check my reviews to see what I mean !).

If you would like to learn more about how you can know which experts are long term profitable and how you can profit from automated trading using trading systems with realistic profit and draw down targets please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed this article !

Diposting oleh Unknown 19.31 0 komentar

What would you like to know about automated trading

Last week, I announced that I am working on a new version of my forex automated trading ebook. This version is not only an update but mainly a full rewrite of my efforts to help retail traders out there in the world of forex expert advisors. Before finishing my new ebook (which will be released on July the 19th) I want to make sure I include as many things as I can that may help the retail trader out there know the ins and outs about automated trading.

For this reason I decided to write this small post. The objective of this post is to ask you, fellow traders (both novice and experienced) , what would you like to know about forex automated trading ? If you want to cooperate and help me bring quality information to the world of retail forex traders please leave a comment answering one or as many as you want of the following questions (you can also email me at ekans_@hotmail.com if you find trouble leaving a comment).

• What has been the hardest for you in the world of automated trading ?
• What specific things would you have liked someone to explain to you before you ventured into this area.
• What questions do you find unanswered in your quest for automated trading profitability ?
• What would you definetely like to know about automated trading ?

I would like to thank the people who take the time to answer these quetions in advance, your help will most likely make my ebook much better for both experience and novice forex traders. It is my goal that with this new version of the ebook many people will be saved from losing their money and will have a much clearer idea of how much and how money can be made by using automated trading systems. I will also probably use your answers to write a few blog posts about the questions mentioned above :)

If you would like to purchase the actual ebook at a lower price (you get all future updates for free, including the one commented on this post) or learn more about automated trading systems please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. Thanks again for your answers !

Diposting oleh Unknown 05.32 0 komentar

So What is your edge in forex trading

I have always wondered if people are really aware at how difficult to trade the forex market actually is. Most of the time people seem to know that the foreign exchange is a place where most people lose their money but they seem to be a little bit away from the concept. Most people consider this does not apply to them. Now, the truth is that most people lose money in the market, specially the foreign exchange market and certainly there is a lot you have to do if you want to become one of the few that can actually profit from this beast in a regular basis. There are a few things that make this more complicated, something which I wanted to point out so that people really become aware of what they are going against.

1. Your competition is not retarded : This is a very important aspect that most traders seem to neglect. They often belive that most people that lose money out there are just ignorant people who dont know what they are doing in the forex market and lose every penny on their accounts due to them not knowing how to trade. Wrong. Of course, this people lose their money too, but most people trading the market are not so ignorant and often, know much more than the new retail trader. Some people out there who lose are economist and finance specialists, so knowlgedge perse is not a way to win in the forex market, experience is very important. I would say, experience and knowledge go hand in hand and both have extreme importance. So dont think you know better if you have not been trading for at least 10 years. It is very difficult to have an edge this way.

2. Your competition wants to win : Most people also neglect that their competition wants that money as hard as they do. If they want to belong to the top traders that take money frequently from the market they have to wonder what they can do to win in their own game. These traders have been taken money from the market for years, even decades, and they are not alone. They are usually teams of very trained proffessionals and experienced retail traders that just want that money as much or much more than you. So what is your edge against them ? Cause I am certain they have plenty of edge against you.

3. Trading a commercial Expert Advisor is NOT an edge : Why would you have an edge if you trade FAP turbo, a system that has been bought and is traded by about 30,000 people ? Thats right, that simply does not give you an edge because it is a tool many many traders are using to try to profit against the market and market eficiency most likely prevents this from happening. Since the trading system is mechanical and automated, it is easily overrun by top forex traders around the world. Sincerely, honestly, do you think that using something you do not understand and many other thousands use gives you an edge ? It simply doesnt, thats probably the truth. They also know how to google, and they too know the program exists and why not to trade it. As I said earlier, your competition is not retarded, every obvious thing you can do to profit, is already taken into account and it wont make you profitable.

4. Automated Trading Systems Need to be Understood to Consitute an Edge : Ok, trading an expert advisor everyone can get their hands into and trade and that is highly commercially hyped wont give you any edge. But that does not mean that automated systems cannot constitute an advantage. If you trade an automated system that exploits a genuine characteristic of the market and you truly understand the way this expert advisor works, then the expert can give you an edge against every trader out there losing money with a commercial EA. The system most be robust, be able to change against different market conditions and you must understand its code and the way it works, from A to Z.

5. You need to know Manual and Automated Trading for Automated Trading to be an Edge (probably programming too) : Yes, sorry to disappoint everyone out there, but if it was as easy as running a program made by Joe X and watching the money flow into your pockets then everybody would do it, right ? As I have said many times, being profitable with automated trading system is even HARDER than being profitable with manual trading systems because long term profitability in automated trading not only requires the regular knowledge of the market a successful forex trader has but it requires knowledge about which systems can be automated, what can really work, how to program the expert, how to debug, how to address the profitability of a system to know if it is long term profitable, etc. If you are just hopping to run an EA and become a millionaire, please, do NOT waste your time, you will only lose money with that attitude in the long run.

I hope this few parameters shine a little light into how hard the forex market really is and how you too can build your edge around a solid automated trading system. If you would like to learn more about ea profitability and automated trading, as well as expert advisors I have tested and reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Diposting oleh Unknown 16.45 0 komentar