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Forex Trading Robot Softwares: Do They Work?

1 Comment March 15, 2009 – 10:07 am |   | Permalink |  Print This Post |

We received a few enquiries from Forex Trading Software Companies on the advertising rates on TheInflationist (very much to our surprise - can we add this revenue to our portfolio profits?), and since then have paid more attention to the dozens of “Get Rich Quick” Forex Trading Softwares flooding the market and adspace. Question is: Do they work? These softwares obviously rely on technical analyses without any fundamentals. Most Forex Trading Robots rely on trends and complex algorithms too complex to understand. We emailed a few Forex Software Companies hoping to find honest answers. Here’s what we found:

forexrobot

Q1: How much have you made using your software?

A: (The answers were mixed, but generally evasive and went along the lines of) “it varies on the individual and on how it is applied-our best trader did 600% in X months so far”. Fair enough. Possible, but even if that was true, how do we know the best traders performance was based solely on the software? How about all the other traders using the system who were making losses? If you treated 100 cancer patients with experimental drug X and one was cured whilst the rest had mixed results, what are the chances Drug X be approved by FDA for public use.

Q2: Why would you sell your software for $49/month instead of quietly making a fortune with it?

A (Most answered) Because it diversifies our revenue streams and is risk-free passive income. Great answer and very acceptable.

Q3: Being a zero sum game, would that not mean that the more winners you help create, the more likely it is for you to lose?

A: Technically yes, but the Forex market is huge. We doubt even having a few thousand subscribers would influence the market and our own profitability trading. Ok, possibly so.

Q4: Is it automatic or manual trading?

A: Manual.

Q5: We would like to invite you to TheInflationist to trade live to objectively quantify the efficacy of your software and system. Would you be interested?

A: No. We simply do not have the time. (Hmmm…do you smell a rat?)

Our Conclusion & Solution

As sceptics we are not keen to part with good money to fund their retirement, but feel that our platform would be the perfect ground to put different trading systems to the test. Objective live trades with quantifiable and repeatable outcomes. We invite all Forex/Stock Trading Software Developers to TheInflationist Challenge who believe in their product and are genuinely interested in putting their system to the test. (You may even trade anonymously - we are not here to police this unregulated market of Forex Trading Robots). We are only interested in one thing: finding a forex trading software that works.

The Forex Robot Trading Software Experiment

To kick off this experiment, we are researching on a few softwares we intend to test live. We will pay for subscription (reluctantly) simply for the purpose of the experiment. Not paper trading, but actual positions in attempt to create a more realistic environment influenced by the psychology of trading. Stay tuned for the first part of The Inflationist’s Forex Robot Trading Software Experiment.

How you can Help Us:

• If you are a subscriber of a Forex Robot Trading Software, please sign up (its free) and post your trades live. No need to blog about your reasoning if time is an issue. Just 5-10 words detailing your exact trades.
• If you developed a Forex Robot Trading Software and are happy to test it, please register to The Inflationist Challenge.
• If you developed a Forex Robot Trading Software, are happy to test it but have no time, and happy to give us free access for the purpose of testing it live: please email us at theinflationist (at) gmail (dot) com.
• If you do not fall into any of the above category but wish to see this experiment go ahead like us, please spread the word. Email this link to as many people as possible, spread the word on finance blogs or newspaper editors, and contact any Forex and Stock Experts you know (or are paying) to invite them to this Challenge.