Should You Buy Forex Robots (EA)?

Hello, friends! The Internet is overflowed with offers to buy a “super-mega-profitable” Forex robot or Expert Advisor (EA). Every day in social networks you can see a dozen of sellers of “Forex Holy Grail”, who spam on social networks instead of enjoying life with the profit from a magic robot. So where is the truth? How to find the magical profitable robot? Should you waste your money on sweet promises of touts?

 

There’s a sucker born every minute

99.9% of the Forex robots that they are trying to sell online — a fierce thrash. Yes, that’s right, you heard right. This is industry of hype. Beautiful pictures, promises of millions of profit for just 100$…. It is oddly enough, but there are still gullible dupes who believe, and so the industry continues its work.

 

Why would they sell profitable Forex robot?

Very often you can find such an argument: “Why would they sell the robot if it brings good profit?”

It seems obvious that there is no need to do so. However…. Let’s suppose the EA gives 3-5% of profit per month. This is a good result, really. The author of the robot has 10000$, he opens the account and sets a robot. How much will he earn? 300-500$ per month. It is very good again, but how much will the author of the robot earn, if he sell it for $100 per a copy? Having sold just 10 copies per month, the developer would have earned 1000$. While not risking his own funds that he may not have.

But what if it’s the martingale type robot? I.e. can it lose the deposit at any time? In this case the motive to sell it, instead of applying it on the author’s account, is even more obvious.

There is another category of “demo-Grail”, i.e. robots that show profit on demo accounts, but they don’t on the real accounts… For example, EA Million Dollar Pips. Of course, such programs are more profitable for sell, because you can’t withdraw demo-money from the account.

So, we have found that the majority of the robots in the sale are rubbish, but occasionally there are worthwhile instances. How can we identify them?

 

How can we identify good Forex Robot?

So, how can we determine that the robot is worthy of our attention?

1. Backtests

This is the most dubious and unreliable part of the assessment of prospects of the EA. They can easily be faked. There were even the cases when the scammers installed the function of reading history of trades to show perfect results during the tests, since it knows where the price will move.

There is the only one advice I can give you— line of profitability on the tests must be sufficiently smooth and the tests should be with modelling quality of 99%.

2. Monitoring

Real account monitoring is an integral part of the assessment of trade bot. If there is no monitoring — feel free to close the page. Also you should check that this is monitoring of the real account, not demo.

Unfortunately, monitoring can also be faked.

3. Reviews

You should not pay attention at the reviews on the page of software sales, students –freelancers write it for a few of dollars.

You should pay attention to the discussions of the robots on the forums. One of the more or less adequate can be called this site, dedicated to the discussion of the commercial robots. But even there the users are not always okay with the perception of reality.

 

Calculation of payback

So, you believe that the trading robot worthy of attention and you are going to buy it. But do not forget about such criteria as return on investment.

Let’s say the robot is on sale for $200 and shows the average return of 5% per month on monitoring of real account. Accordingly, in order to recoup the cost of the robot within 3 months (this is the recommended period because of the variability of the market and that you need to earn something in addition to the cost of the EA) you need a minimum deposit of 1350 $. Can you afford such account only for trading this robot? If you can, then you can buy the software. If you can’t — you should consider other options.

 

All that glitters is not gold

So, what can we conclude? You shouldn’t believe the ads of miracle systems on the network. You can buy any robot for your hard-earned money only if you have experience in working with EA, understanding of what you do and if your intended deposit allows you to recoup the cost of the robot.

Overall, worthy of attention paid robots are free some time later and appears on the network. And there is a lot of interesting developments, that the authors share free of charge. Stay tuned for more new reviews of the robots in the Forex Robots Lab.

Take care,

Mykolas