The world of forex robots is home to some of the most aggressive sales pitches you’ll ever come across, regardless of what kind of product you’re shopping for. Fortunately, we shop for forex robots over the Internet and don’t have to deal directly with a sales person. If we did have to deal with a forex robot sales pitch in person, one could only imagine how far the forex robot sales team would go to sell us a new forex robot.

Since the forex robot developers can’t hook us on their product in person, they rely on a couple of other tactics, not the least of which is using back-test and demo account trade results on their sales pages to give us the impression that their forex robots are nearly unbeatable.

But when you buy the forex robot and test out for yourself, are back-tests and simulated trades enough to teach you everything you need to know about your forex robot? The simple answer is no, you cannot rely on these methods for getting an optimal sense of your forex robot’s performance and we’re going to explain to you why can’t trust these methods.

Everything Works In A Demo Account…If You Want It To

Perhaps you’ve tried trading in a demo or simulated forex account and that’s a good idea for new traders that are testing out strategies and trying to identify problem areas within their trading. Or maybe you have a system like Meta Trader 4 and you’ve back-tested some strategies and they’ve worked out well. Everything looks great, but hold on for a minute. Here’s the problem with back-testing: It only shows how a particular trading strategy would’ve worked in the past. Back-testing is no indication as to how a trading methodology will perform in the future, and unless you have very expensive and sophisticated equipment, it’s nearly impossible to simulate every possible market condition in a back-test.

And just as you would face these challenges, so would a forex robot. At least the ones available to retail traders. This is why it’s imperative you don’t rely on back-test results. It’s easy to make any forex robot look good during a back-test, but it’s a lot harder to make that same forex robot perform at the same level in live trading, let alone expect it to peer into the future and predict the market’s next move.

When it comes to demo accounts, you can take all kinds of risks you would never consider with real money. You can hold trades for as long as you want and they’ll all eventually become winners. A forex robot can do the same thing, and take some big losses along the way, but who wants to take big losses with real money and how is this realistic preparation for your forex robot? It’s not and that’s the truth.

Stick With Live Accounts

The reality is that back-test and simulated results are fodder used to sell a product, that product being a forex robot. These methods are not enough to depend when evaluating a forex robot. Trust only verifiable live results. Even better, trust only the results you’ve seen for yourself.

Author Bio: Francisco Pizarro G. made a career from Forex and left my profession as a Translator almost 4 years ago; since then I work from home in my small office trading the Asiatic markets during night time, where I found a good niche. I am a fan of Forex Robots

Category: Finances
Keywords: Forex Robots, Day Trading, Forex, Forex Brokers, Finacial Advisors, Expert Advisors