Do you want to know how to conduct independent testing of Forex robots to find out which are the most profitable currency trading software on the Internet today? There are now thousands of websites promoting the Ultimate Profit Solution use of automated Forex robots as the popularity of currency trading increases every day. Also, these websites are using very strong sales tactics to pressure visitors to buy, making you wonder if they really work.
1. How Do You Know How an Automated Forex Robot Performs in Live Trading?
The best method to know if a Forex software really works is to see its live trading results, otherwise known as forwarded testing. This type of testing takes into account all factors like fluctuating broker spreads that affect a real live trade. This also means that a single Forex robot can produce slightly different results with different brokers due to these factors. One of the most popular methods to conduct forward testing is to run the robot on a demo account with real live trading data.
2. What are Some Factors That Need to Be Taken Into Consideration When You Are Testing Forex Robots?
The most important factor has been highlighted above, which is live trading results. All robots that you use with real money needs to have proven profitable performance in a live trading environment. On top of that, even if the robot can perform well in forward testing, you also need to ensure that it has been profitable in its back tests.
The next things you want to look out for are customer testimonials and endorsements. Try to find more sources of reliable of information before concluding that the robot really works.
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Finally, there is one often overlooked factor that is the drawdown. Drawdown is a percentage figure that tells you the largest percentage of the bank that the software has ever lost on an account. For example if drawdown is 50%, it means that it had taken an account to half its value before. Everyone has different risk tolerance levels, so look for a robot that has drawdown safe enough for your risk tolerance.