When you are reading through all that blurb (although, after reading The 20 Second Check you won’t have to read any of the blurb) what you should be thinking is, “if I am going to spend some of my hard-earned money on this Forex robot, how can I satisfy myself that it really will work?”
So what you should be looking for is genuine proof that it works. When you click on the link to the sales page you can ignore all the hype and just concentrate on the “Live Proof” – if there is any.
So what does live proof really mean?
There are only two forms of live proof:
- Access to a MetaTrader account via the “Investor Password”
- Access to live published statements
But more about those later.
First of all let’s see some examples of the sort of “Live Proof” you will see on FOREX robot sales pages:
LIVE PROOF – $1,140 in just one trade
LIVE PROOF – $8,229 in just 2 months – almost double the account
Looks impressive doesn’t it? Would you buy my system based on that?
I sincerely hope not!
The above “proofs” took me about 10 minutes to fabricate. The graph is simply a graph from MetaTrader (for my FREE review of MetaTrader click here); the line on the graph was created using “Insert, Line” and the text – you guessed it – “Insert, Text”.
The following took 20 minutes to create.
LIVE PROOF – $23,742 in just 2 months – OVER 400% PROFIT
Despite just showing the beginning and the end of the statement (so I could fit it onto a single page) this is actually taken from a real (demo) account. All I have done is export my statement to Excel and multiplied the profits by 10. So, although this actually is a profitable account, I exaggerated it so that the profits look huge – doesn’t 400% profit look a lot better than 47%?
So, 25 minutes and I have fabricated 4 different “Live Proof” examples that look exactly like those you will see on the sales pages of many Forex robot websites.
Other editing tricks include deleting most of the losing trades from a statement, removing most of the minus signs from a statement and showing back test results as live results. I have even seen a statement snapshot where the exchange rates were altered – that must have taken a lot of time and effort, but not many people, certainly not newcomers to Forex Trading, would know how to check to that level.
Now that I’ve mentioned it, let me talk about back testing for a moment.
Back testing is a function available on the MetaTrader platform that allows you to test a robot against historical data. Historical data can go back 10 years, so, if a robot can show huge profits over the last 10 years, that’s good, right? Well, no, not really. You see, the FOREX market is constantly changing. It is a totally different animal to what it was 10, or even 5 years ago. Actually it’s even different now to what it was last year. You will see a disclaimer (or should do) on every FOREX robot sales page that goes along the lines of “…Past results are not a guarantee of future earnings….”. Take note, that warning is not there for fun. Even if you find a robot or strategy that works now, it may stop working, or even work against you at some point in the future. If you see back test results for last year showing impressive results that’s just not good enough, it is not proof that it is still achieving those sorts of results today.
Another trick I have seen is hiding the starting size of the account and the size of each trade. Large trades, usually 2 or more lots, will produce huge profits for relatively small changes in the exchange rates. I have even seen one site where they used a demo account set up with $1 million as the basis for their claims! With a small/medium sized account it is possible the trade to get closed by the broker if the losses get too large while you are waiting for a change in direction. With a large/huge account, this becomes less of a problem.
In fact, the hiding and editing of any part/parts of either statements of screen shots or even video shots, is the main feature of forex robot scams. After all, thinking about it logically, if the damn thing works, why hide anything?
Conversely, if nothing is hidden, the damn thing obviously works.
So, what you are looking for on a sales page is “Live Proof”. But not just something labelled “Live Proof” as you saw above.
Check out What Constitutes Live Proof.
If you are interested in learning more and seeing the test results of Forex robots I have used, then sign up for my weekly newsletter by entering your name and email address in the form on the right.