The Death Of Automated Forex Systems

Automated Forex systems are notoriously unreliable these days, and it's almost a given that any program that you buy will fail in the first few months. Why? Since the developers said the system is costly shortcuts that seriously affect the trade performance of the program later. Obviously, they're just hoping and praying that it would not have found out before the money back guarantee expires? Here's why the death of the automated Forex system on us ...

Automated forex system seriously flawed!

Ever wonder why the historical trading data of any system looks picture perfect on the website, yet not so miserably in real trading? Well, for one, there are many hucksters out there trying to con you out of your money. That said, I believe there are many good honest developers out there that put their systems with the best intentions, but with one fatal flaw. They do not realize they inadvertently are developing systems that are doomed to fail miserably with his method!

Most creators of such systems, they think they can use historical price data to develop good systems, but the reality is that if this is what the system will be optimized to great trades in the past ... but creepy crafts in the future. That's right, they do not realize that they actually have finished their trading curve fitting model of historical price data, and the forex market history never repeats itself perfectly. Therefore, their systems look perfect when he "traded" in the past data, but not in epic proportions in the present and future.

In order to really develop an automated forex system to work properly

to develop trading programs that will last, the underlying price model must be robust. This means that it must be "rough" enough to withstand regular shift of the trending sideways back to calm volatile markets. To do this, the developer must begin with a strong understanding of market dynamics, and develop a basic philosophy that has nothing to do with observations of past market behavior to that point. Following the philosophy and system are well defined, then backtesting can be done to confirm the theory. Unless people stop developing automated forex system the wrong way around, you can expect the eventual death of the system as we know it today.