When looking at legitimate Forex trading software programs online, many people fall victim to clever little tricks and methods employed by the Forex Robot owners to inflate or distort the program's effectiveness.
One such trick is by displaying the "back test" results.
The back test results represent the results of the software running in demo mode and although they can give a decent representation of how well the Forex Robot can perform, they also can be altered to fit the bill.
The thing you need to pay close attention to is the equity curve (revealing your potential rise in earnings each day / week / month).
So, in order to know whether a Forex Robot is legitimate or not, you need to consider two key factors:
1. Winning Percentage
The first and foremost key to a good Forex Robot is the winning percentage it produces. Now, lots of people take figures that are produced over a couple of weeks as golden, but the real secret is to look at long term figures for a better representation.
A potential Forex Robot should have a winning rate in the past 5 years of 95% on average, with live testing showing even better winning percentages.
Obviously, this kind of Forex Robot can make you money from this factor alone.
Drawdown is also an important consideration when choosing Forex Robot because it measures the maximum percent of capital that the software has lost you.
It's worth knowing that the average Forex trading software can have drawdowns of around 10 or even 20%. An impressive Forex Robot should have an average drawdown below 1%.
If you are new to Forex trading and the technicalities just discussed confused you, I suggest you read a free e-book called an Insiders Guide to Forex Trading so you can have a broker perspective of ins and outs of forex trading schemes.
Surprisingly, I found out during my extensive search online of available products in the market that meets the strict criteria of the two, there is one that stands out.
The Fab Turbo System has a winning rate of 95% on average for the fast 9 years and has an impressive drawdown rate of only.03%.
More importantly, FAP Turbo system looks to trade for long term rather than short term, and makes you money from trends that are more stable as a result (probably why the success rate is more predictable for lots of people).
I also noticed even before trying out the software that the videos, screenshots and other elements of proof on their website are pretty consistent that is the back test results and the live results share a similar pattern of equity growth.
When looking out for legitimate Forex Robot, look for performances that match the criteria in winning percentage and drawdowns before you think of investing.