Do automatic FX trading systems really work, or are they just scams? These automated trading software machines, otherwise known as forex robots or EA’a (Expert Advisors), have attracted a lot of attention recently. Most people are very skeptical about them as the promises they make seem too good to be true, such as making money automatically while you sleep. So is it possible to really make money automatically with Forex auto trading robots?

I set about looking at systems that would work with my forex trading account which is based on Meta Trader and allows EA’s. Most of the ones that I checked into had huge losses in the back testing results, and so I crossed them off the list. When I was through looking at back testing results, my list of potential robots had grown very small with only a few making the cut.

With the most up to date automated forex trading software, losses are still unavoidable and will be made occasionally just like any form of investment. However, it is that the risk-reward ratio of currency trading, especially with robot trading, that make the risk of making losses on some weeks is well worth taking, because of the massive potential amount of profits that can be made.

The systems all have different criteria for taking trades, moving averages, fib levels, stochastic levels, etc. Some are shooting for the big wins and others are just taking a few pips every day. The later group is what I found to be the most effective, as it keeps the losing to a bare minimum.

One good way to check whether any auto forex trading software is too risky would be to look at how much maximum it has lost on its back test results. Back test results are usually available on the robot’s main website. The really good ones also have live trading results the update daily or every several hours.

An area that separates the really good EA’s from the so-so is if the EA can factor in the spread your dealer is offering. This is especially important if you are just trying to get your 10 pips and the dealer just raised the spread from 4 pips to 10.

The systems that provide live results are the ones with the most to lose, they are putting it out for the world to see. They also are the ones that will offer your money back if it does not work for you. I have found several automatic forex trading systems that have proven they can make a profit over and over again.

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