So it all sounds pretty good! Too good to be true? For those whom have been following the Forex Robot World Cup (FRWC) some may be a little skeptical about it's reality.
There have been some experienced traders whom have been critical of
the FRWC. They simply don't believe it is possible to buy a automated
forex trading robot that consistently makes money on auto pilot. They
seem to discredit forex robots. I know of one forex guru whom calls them
all junk and then offers people the opportunity to learn to trade forex
through him. Is this a conflict of interest or what? Forex robots that
work will obviously be bad for HIS business.
So, what's the reality with robots offered through the FRWC? Are these automated robots really going to work?
Lets consider some possible issues with these robots;
1. Competition was run for only two months.
This is a short time to evaluate a trading system. A system that
is suited to market conditions within the two month period will do well.
For example, assume the market trended really well during the two month
period, then obviously the trend following systems will be in front of
the non-trend following systems. Hence, if the market stops trending in
month three then the system will not do so well from that point onwards.
At least until the market starts trending again.
It is possible to 'get lucky' within any two month period. Read about Jason Star's learning experience here.
2. Loss of liquidity
The second issue is that if "everyone" is using the same winning
automated robot, then it will stop working as there will be nobody to
take the opposite side of the trades.
Loss of liquidity can be a real possibility if a robot gets too popular. This was a problem within the first year of Fap Turbo's release to the public. The forex brokers were finding it hard to match buy and sell orders coming from thousands of traders at the same time. In the first year, sales of FAP Turbo were about fifty thousand. As it is a scalping system timely fills are important. The developers decided to introduce a "scatter" feature in which randomly delayed some buy and sell orders. Read more about FAP Turbo here.
So, it is true there are some possible issues with purchasing a winning forex robot from Forex Robot World Cup.
With a bit of time we will have to see how independent third party statistics pan out over a longer time frame.
There will be future competitions for the FRWC with leading systems offered for sale. So at least that will take off some pressure from everybody using the same robot.