Most novice traders buy automated Forex trading software and while most systems sold lose, even traders who buy the good ones still manage to lose. Let’s look at how to find the best systems and what you need to do to win with them.



The first point to keep in mind is, forget all the cheap heavily advertised robots they won’t make you any money. The advertising message is one of gains better than the worlds top find managers (with little or no drawdown) and you get all this for the price of a night out!





It looks to good to be true and it is.



The vendors back up their claims, by producing on back tested track records (done knowing the closing prices) or records they give you with no checks from an independent source, avoid these systems or you lose.



Now you can either buy a system or you can even get some good free ones (and we will look at a good free one in a moment for now, let’s look at what you can realistically make and what you need to do to do to win with the good ones.



The best systems, will make 50 - 100% annual gains which are great but clearly understand this:



These systems will have losing periods of weeks and drawdown by 20 - 30% from peak equity.



The fact is most traders can’t follow even a good system, because they cannot accept drawdown, if you can’t accept losses don’t try automated Forex trading, because it’s going to happen to you like it does to every other trader.



To cope with a period of drawdown study the system and get confidence in its methodology and accept you have to have short term losses to enjoy long term success.



A good free system is the 4 Week Rule, devised by trading great Richard Donchian and it’s a system all traders should study.



If you want to win with an automated Forex trading system, ignore the hype of the cheap systems which are advertised heavily online and get yourself a simple robust one with a real track record.



You then need to study the logic and trade it with confidence and discipline, accept short term drawdown and keep your eye on the long term. If you do this, you will be on the road to profits and enjoy Forex trading success.