Is there such a thing as a no loss Forex robot? Many Forex robot sellers would have you believe that their automatic Forex trading system can look into the future and avoid all losing trades, but the truth is that it's impossible to build a system that will never lose. In fact, you don't need a no loss Forex robot to make money in Forex trading. Believe it or not, there are many profitable Forex trading systems that suffer losses up to 50% and even 90% of the time! By the end of this article, you'll know why you don't need a no loss Forex robot to be wildly profitable in the Forex markets.
The Myth Of A No Loss Forex Robot
The myth of a no loss Forex robot has been conveniently propagated by Forex robot sellers for years to sell more systems. It's such a big selling point because let's be honest, we don't like to lose! Forex robot sellers know that, and so they try to design their automatic Forex trading systems in such a way that they appear to be the real deal... until it's too late.
If you're thinking, "But Thad, I've seen their live trading account records and it's had no losses in the last 3 months!" You're right, they haven't had a loss yet, but if you look at their profits per trade, chances are that they're only bringing in 3-5 pips in profit, and at the same time risking a 200-500 pip loss because the system uses a wide stop. These automatic Forex trading systems can go for weeks and even months without a loss, but when it comes, you'll lose all your profits and may even blow up your account!
Do You Really Need A No Loss Forex Robot?
When the whole world seems like it's going crazy, then it's often time to change your assumptions. In this mad world of automatic Forex trading systems, most people don't want to lose... and lose big as a result. But do you really need to have a no loss Forex robot to make lots of money trading Forex? Well, no, of course not! In fact, you can have a system that makes losing trades 50% of the time and still make money. Wait, let me take that one step further. You can have a system that makes losing trades 90% of the time and still make money.
How does that work? In the world of automatic Forex trading systems, the percentage of winners and losers aren't the only thing that affects the profitability of the system. For example, let's say your system has 10 winners and 10 losers. Is it a profitable system? Well, it really depends on the average size of your winners, and the average size of your losers. If your average winning trade is twice as big as your average losing trade, then you have a profitable system!
A Profitable Forex Trading System With 90% Losers?
What about the system that has 9 losers and 1 winner, the 90% loss system. Well, if you only lost $100 on each losing trade, but made $2,000 with the winning trade, then you would be $1,100 to the good and have a very profitable Forex trading system. As you can see, you don't need a no loss Forex robot to make lots of money, because the winning percentage of the system is not the only factor that determines whether you have a profitable Forex trading system or not.
Another key factor that most Forex robot sellers don't want you to know about is the relative size of the winning trades to the losing trades, known in professional trading circles as the win to loss ratio. If you have a good enough win to loss ratio, then the winning percentage doesn't matter. So, when you're searching for a profitable Forex trading system, forget about getting a no loss Forex robot. Make sure you have a great win to loss ratio to go along with your winning percentage, and you'll be laughing your way to the bank!
Thad B. is a Professional Trading Systems Developer who has developed and managed dozens of profitable trading systems over the years for a private hedge fund. Forex trading systems are his passion and expertise, and he has a wealth of helpful resources available for any serious Forex systems trader.
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