There are fancy ads on the internet showcasing fancy cars, helicopters and stacks of money if you use a particular trading robot. Today, Jason talks about Can Automated Forex Trading Make YOU Rich?!
These ads promote ‘Expert Advisors’ or ‘EA’s’, they are black-box algorithms that trade automatically on your behalf and claim they will make you rich overnight and some even claim within the first few hours of use! These claims are outlandish and most are rip-offs and scams. But there is some validity.
How They Work
The cost ranges from free to thousands of dollars. Most are a subscription based. There are monthly, yearly or even lifetime options.
Users do their homework and decide on the service that’s right for them. The EA’s have to be downloaded on a virtual server because they must run 24 hours a day, 5 1/2 days a week.
Unless you have a computer on 24 hours a day, you want to instill your program on a virtual private server or VPS. The average cost is about $20.oo per month.
Track Your Progress
Once you have purchased the EA and installed on a VPS, it’s time to track it. You can either log in and watch your results or you can link it to third-party software like myFXbook or FXBlue. There are a host of providers to search from. You then watch, track, study and adjust as needed.
Beware the Warning Signs
Demo trading on practice accounts is very rarely equal to the results in a live money account. Not only can the spreads between broker pricing make a difference but the data feed, the speed of the trade can as well. The established brokers are looking for 1 to 2 to 3 Pips of profit per trade. And they may only trade 1 time per week. It’s important to have an ECN broker that has a very small spread and maybe even a small commission to get the most bang for your buck.
To hear the rest of the warning signs and Jason’s take on EA’s, download and listen to Can Automated Forex Trading Make YOU Rich?!
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