[Visit our site sponsor FP Markets winner 36 industry awards]
Is this expensive software worth it? ... In most cases NO.
A lot of traders wonder if they should buy some fantastic software or indicator that can predict market movements and thereby make them a lot of money. A question was asked of me recently about a particular software brand. The principles I have outlined in the answer cover most if not all of this type of software being sold on the internet today. I have deleted any reference to the particular software inquired about as the principle behind it all is important and obviously some software is better / or worse than others and I don't want to publicly put down any one particular brand without having tested it. Here is the question and answer follows;
Hey Brainy Fritz,
I have a question for you. I have received a lot emails from N... H..., the creator of H... software. Is this guy for real and do u know anything about H... Traders Software. It sounds interesting and revolutionary for forex. And can be used for futures, stocks, options. Interested in your opinion because I have some trust with you. And it is expensive! Is it worth it?
Thanks for your email. I took a look at NH's.. H.. software by looking at his concepts as explained by his video's for some of his indicators. I can see that his idea's are very detailed and deep. I have seen such indepth software in the past and spent $3,000 on a complex piece of software that I wish with hide-sight that I had not. There are many smart people like mathematicians, nasa rocket scientists and similar whom come up with intricate trading concepts by very complex means. These complex trading idea's can be replicated and even improved upon by simpler means.
For example using an exponential moving average crossover, paying attention to volume and considering larger time frames and candlestick patterns. For example look at a chart where volume is increasing and see what happens when price closes above or below the prior bar high or low. If the larger time frames agree, the market will move in the direction of the 'bar close' in which a profit can be captured by using say a 3 & 7 ema crossover. Or say a 7 & 21 ema crossover.
I have noticed that a lot of software developers don't show live or demo proof of their trading concepts. To the software developers advantage the more complex the method the better because then when you can't make a profit you think the problem could be with you? The problem is that the method is so complex that the system just cannot be traded as you would have to watch the screen for 12 hours straight. You just cannot wait for all the indicators to LINE up. And the nature of the market is that, the market will still move up or down even if only half or just one or two indicators show this. (Because some large institution dumps a ton of stock all at once - and whom could have predicted this?) So that you will miss opportunities because there were too many indicators that you were waiting for. And by the time you realize that you just wasted thousands of dollars on the software and you want your money back it's too late because the refund period has expired!
I took a look at NH's..H.. software refund policy. They don't offer refunds unless in exceptional cases. This should ring warning bells! If their software works why would they not have a decent refund policy?
Personally, I would avoid expensive indicators selling for thousands of dollars. There is no need for vendors to price these indicators at such high prices. (This is the technological age were the cost to make and distribute this software is inexpensive). The only reason I believe these vendors do so is to make you believe their software is high value and works and also to provide a handsome profit for themselves.
Whatever you do, don't believe the testimonials or other sales hype any vendor offers. Only consider trading statement proof and a good refund policy. Ask them to prove to you that it works!
Hope that helps
Click here to post comments
Join in and write your own page! It's easy to do. How? Simply click here to return to General Forex Question - Not Fit Above Topics .