Forex Time Machine

Fx Time Machine

There are a ton of Forex expert advisors on the internet today, in fact hundreds of them. It virtually makes it almost impossible to spot the expert advisors that basically work. With so many decisions and such a lot of different Currency exchange robots trading on multiple currency pairs there must be an answer to identifying the right trading robot.

The first thing one must ask themselves when looking out for a quality Forex expert advisor is, what kind of previous performance will the trading robot have? What kind of trading accuracy are we dealing and which currency pairs will the trading robot trade on?

The worst cock up that most expert advisors make is making an attempt to supply a solution or mathematical formula that works for each currency pair. It’s simply not possible to have a Forex robot be an expert on each currency pair due to the fact that each pair has it’s own patterns and daily ranges. Thus when identifying a trading robot one of the first things we look for is an expert advisor that concentrates on only one currency. Secondly we investigate it’s previous performance over the last 5 years. If the trading robot has performed well with minimal draw down and has sustained profitable months, than we are 1/2 way there.

Next, we research the Foreign exchange robots money management. We’ve got to ask ourselves, what was the maximum drawdown over the past 5 years? Anything with less than 30 p.c draw down over the last 5 years is a definite positive. Another question we’d ask ourselves is, will the trading system employ a stop loss? Some trading systems will not employ a stop loss and agree with it not can be extraordinarily profitable. A system that doesn’t use a stop loss has to have a trading accuracy of 80% or higher where the winners clearly out weight the losers by more than half in terms of dollars.

Finally, determine how much risk you are willing to take. Trading with an expert advisor or any system at that matter does require a bit of risk, yet if handled properly can be extremely profitable. Never use a trading robot without first testing it in a demo account. Only after the trading robot is ready to sustain profits after 3 months should one think about employing the trading system in a live account. Be certain to find a system that has a very high success rate, uses correct money management and has been completely back tested and you’ll be bound to end up a winner.

Bill Poulos – Forex Time Machine

Why are such a lot of forex traders NOT succeeding?

I had an opportunity to discuss with Bill Poulos today and posed that query to him. Do you know what he said?

‘most experienced forex traders wait too long to move stops to guard their positions and often watch their profits disappear.’

And that wasn’t all — he went on to clarify a straightforward idea, similar to Gambler’s Ruin that permeates the forex trading world.

Basically, once a trader sees profit in a trade begin evaporating they get only focused on getting back the lost profits. They forget to understand the need to protect the profits that they still have in the trade. The result? A reversal continues, the once-profitable trade becomes a bad trade and the trader’s frustration mounts.

I have seen this myself and it is the easiest trap to fall into, because you persuade yourself the EU Buck just hit that intra-day high and it can get back up there! Except – it does not and it continues to drag back till your twenty or 30 pip gain turns into a twenty or thirty pip loss.

that could be a pretty dreadful example – but have you had that happen to you?

What do you do?

Bill had an answer for that, too!

he said most traders do not know what the available profit potential is for any single trading event — that is, they do not set profit targets which allow them to take what the market gives them and then exit the trade in multiple steps. And, without a method that protects capital first and manages profits second, there isn’t any way the average forex trader can survive in the foreign currency markets.

in order to position yourself correctly, traders MUST have a multi-part methodology — one that teaches them how to identify the BEST available trades, obviously sets out a profit target, helps manage the taking of those profits and from the outset, teaches traders how to guard their valuable capital!

He calls this handling risk first, taking profits second – and it’s really groundbreaking thinking.

Watch the first part of his new, free video series on this right here [*CO].