How to Choose the Best Auto Forex System Trading Software
An Auto Forex system trading can be a great way to increase your profits, but choosing the right auto Forex system for your needs can be difficult. In this article we look at some of the things to consider and what to avoid when buying an auto Forex system. When evaluating an automated Forex system, the following 2 important things should be considered: 1. Backtesting Results
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Most auto Forex systems available today run on the Metatrader Forex trading platform, which includes a very helpful tool for backtesting called the "Strategy Tester". Using the strategy tester, the system can be tested against historical data in order to see how the it would have performed in the past. The strategy tester report gives you a detailed breakdown of all the trades, as well as various other performance indicators that show how successful the system was during the test. These backtesting reports are often published on product sales pages in order to show off how successful the system could be, but if you look past the hype you can also learn a lot about the auto Forex system itself.
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The backtesting report shows a lot of interesting statistics like the number trades performed, the winning versus losing trade percentages and an equity graph showing how the the initial investment grew. One of the important values to look at is the maximal drawdown - this shows the maximum loss that was incurred during the testing period. The higher the maximal drawdown, the bigger the risk for you as the trader. Aim for a maximal drawdown of 15% or less. While a high percentage of winning trades is an important factor, it is more important to see a smooth, upward equity graph that has no large drawdowns or periods of volatility. The number of trades performed in testing could also be important. Some auto Forex systems trade 5 times a day, while others trade twice a week. Make sure you select a system that suits your trading style and personality. 2. User Feedback If the backtesting report of an automated Forex system shows promise, then the next step is to look for feedback from customers who actually use the product under current market conditions. However, because of the fact that Forex programs usually pay referral fees, it is not so easy to find honest feedback. The internet is full of false reviews and fake trading results so you need to be aware of this and take everything you read with a pinch of salt.
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