Automated Forex Robots - Why Professional Traders Don't Use Them

I have been a broker, worked in a fund management house and educate traders and I can tell you in my 25 years of trading experience, I have never seen any serious trader use the few hundred buck robots that are supposed to lead you to success - Why? Because they don't make money...


Of course if you look at there track records of must Forex robots they have better track records than the world's top traders who are on multi million pound salaries and yet, many robots claim you can double your money every month and all for the price of a night out. The reality of course is they never deliver and the reason is obvious.They lose money!

The track records are either back tests, (in simple terms this means made up knowing the closing prices) or presented by the vendor themselves with no independent verification, no audit by a third party is ever presented. Hardly inspires confidence does it?All Hype and No Substance

The hype in the copy is that you can make money in your sleep, while your playing golf or having a beer, simply switch the computer on, leave it and make money - but if this were true, the whole world would be trading and no one would bother to work.

In Forex trading lets make a point clear - you don't make money easily! 95% of traders lose and in the case of the cheap Forex robots it's 100%

The robots are all supposed to have been devised by whiz kids, nerds or insiders and one site I know actually took a few of the well known "traders" and showed where they had come from, a site of actors!

The systems present unrealistic gains which even Warren Buffet couldn't match and traders believe them.

Sensible people suddenly become blinded by greed. Now lets look at how to make money and what you have to do.How to Make Money In Forex

Serious traders know that like in all areas of life, you have to learn skills and learn to apply them with discipline. They don't buy into the myth that Forex is a walk in the park - because its not. Of course if you are prepared to get the right Forex education, learn skills and apply them, you can make huge rewards for your efforts.

If you take Forex trading seriously and put in effort you can win, think Forex trading is a walk in the park and you don't have to make any effort and you will lose, its as simple as that.NEW! 2 X FREE ESSENTIAL TRADER PDFSESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info and a RISK Course visit

Forex Market Overview

The following facts and figures relate to the foreign exchange market. Much of the information is drawn from the 2007 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2007. 54 central banks and monetary authorities participated in the survey, collecting information from approximately 1280 market participants.Excerpt from the BIS:"The 2007 survey shows an unprecedented rise in activity in traditional foreign exchange markets compared to 2004. Average daily turnover rose to $3.2 trillion in April 2007, an increase of 71% at current exchange rates and 65% at constant exchange rates...Against the background of low levels of financial market volatility and risk aversion, market participants point to a significant expansion in the activity of investor groups including hedge funds, which was partly facilitated by substantial growth in the use of prime brokerage, and retail investors...A marked increase in the levels of technical trading – most notably algorithmic trading – is also likely to have boosted turnover in the spot market...Transactions between reporting dealers and non-reporting financial institutions, such as hedge funds, mutual funds, pension funds and insurance companies, more than doubled between April 2004 and April 2007 and contributed more than half of the increase in aggregate turnover." - BISStructureDecentralised 'interbank' marketMain participants: Central Banks, commercial and investment banks, hedge funds, corporations & private speculatorsThe free-floating currency system arose from the collapse of the Bretton Woods agreement in 1971Online trading began in the mid to late 1990'sSource: BIS Triennial Survey 2007Trading Hours24 hour marketSunday 5pm EST through Friday 4pm EST.Trading begins in the Asia-Pacific region followed by the Middle East, Europe, and AmericaSizeOne of the largest financial markets in the world$3.2 trillion average daily turnover, equivalent to: More than 10 times the average daily turnover of global equity markets1More than 35 times the average daily turnover of the NYSE2Nearly $500 a day for every man, woman, and child on earth3An annual turnover more than 10 times world GDP4The spot market accounts for just under one-third of daily turnover1. About $280 billion - World Federation of Exchanges aggregate 2006 2. About $87 billion - World Federation of Exchanges 2006 3. Based on world population of 6.6 billion - US Census Bureau 4. About $48 trillion - World Bank 2006.Source: BIS Triennial Survey 2007Major MarketsThe US & UK markets account for just over 50% of turnoverMajor markets: London, New York, TokyoTrading activity is heaviest when major markets overlap5Nearly two-thirds of NY activity occurs in the morning hours while European markets are open65. The Foreign Exchange Market in the United States - NY Federal Reserve6. The Foreign Exchange Market in the United States - NY Federal ReserveAverage Daily Turnover by Geographic LocationSource: BIS Triennial Survey 2007Concentration in the Banking Industry12 banks account for 75% of turnover in the U.K.10 banks account for 75% of turnover in the U.S.3 banks account for 75% of turnover in Switzerland9 banks account for 75% of turnover in JapanSource: BIS Triennial Survey 2007Technical AnalysisCommonly used technical indicators:Moving averagesRSIFibonacci retracementsStochasticsMACDMomentumBollinger bandsPivot pointElliott WaveCurrenciesThe US dollar is involved in over 80% of all foreign exchange transactions, equivalent to over US$2.7 trillion per dayCurrency CodesUSD = US DollarEUR = EuroJPY = Japanese YenGBP = British PoundCHF = Swiss FrancCAD = Canadian Dollar (Sometimes referred to as the "Loonie")AUD = Australian DollarNZD = New Zealand DollarAverage Daily Turnover by CurrencyN.B. Because two currencies are involved in each transaction, the sum of the percentage shares of individual currencies totals 200% instead of 100%.Source: BIS Triennial Survey 2007Currency PairsMajors: EUR/USD (Euro-Dollar), USD/JPY, GBP/USD - (commonly referred to as the "Cable"), USD/CHFDollar bloc: USD/CAD, AUD/USD, NZD/USD - (commonly referred to as the "Kiwi")Major crosses: EUR/JPY, EUR/GBP, EUR/CHFAverage Daily Turnover by Currency Pair