Can You Rely On Back-Tests And Demo Results When Buying A Forex Robot?

Get A Forex Robot That Is Capable Of Doubling Your Money Every Single Month…

Those outrageous claims that so many forex robot developers make about their products hardly ever come from live trading accounts and that makes it hard for potential buyers to discern just how good that forex robot may be.

There are quite a few pitfalls to relying on data derived from back tests and simulated accounts and that’s why we always advocate trying out your forex robot on a live account. Even if it’s just a mini or micro forex account, the results you get trading a forex robot in a live account or simply beyond comparison.

Demo accounts are a fine place for an individual trader that doesn’t intend to use a forex robot to hammer out some strategies and learn a lot about forex trading. In fact, no rookie trader should just run into forex trading without trading in a demo account first. That in itself is a losing a recipe for disaster and no seasoned trader would disagree with that statement.

Problems Abound When You Don’t Trade Live

Everything is groovy with a forex robot when you look at its performance from a back-test. In fact, it would be downright startling to see a forex robot that didn’t have stellar back-test results. Keep in mind that back-tests are just that: A test based on something that has already happened. An additional hazard to relying on back-tests is the fact that a lot of forex robot developers don’t mention how long the back test ran for. If a back test is only a few months long, it likely doesn’t encompass every kind of  market condition and that could confound your forex robot when it has to trade through a set circumstances it’s not familiar with.

On the other hand, a back-test with too much data may mean the forex robot is only slightly familiar with certain market conditions and this could render some big losses or cut profits at all the wrong times. The point is, back-tests don’t give you all the information you need about your forex robot.

Don’t Trust Demo Accounts Either

By now, you know the deal with demo accounts. You get a ton of free play money from a forex broker that wants you to try the platform so you give them your business. This may seem like a winning scenario for you, but what about your forex robot? What are the chances that you’re going to open a live account with $50,000? You need to try your forex robot out with an amount of money you actually could see yourself trading with. Anything more and you’re just fooling your forex robot and that will lead to problems.



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