The foreign exchange market has become the largest market in the world, with an estimated trillions of dollars changing hands everyday. With a market this size, practically anybody who knows what a pip is is looking for their share of the pie. And where the crowd is, you’ll also find those out to make a quick buck.
Forex robots are the buzz word nowadays. No longer must you sit and stare at the computer screen. Just install and run the robot, and it’ll do the dirty work for you. Should you be forex-challenged, no need to worry. The robot will handle every detail for you, just download, set some parameters, and the robot can make money for you as you sleep.
Many builders of trading robots do try to build a robot that can trade the market profitably. But, in a market where even the best minds can’t guarantee profit, that’s no mean feat. Oftentimes, the robot performs well initially, but fails miserably over time.
However there are many builders who build robots with the sole purpose of selling them. They know how easy it’s to build a robot that appears profitable. They build the robot, and make money from the sale, or the subscription fees.
This information is about ways to start designing and selling such a forex robot, and so the would-be investors will be more careful once they come across forex robots, and if they are doing choose to jump in, would do this with both eyes open.
Designing the Forex Robot
You don’t have to know anything about how exactly to trade the foreign exchange market. Keep in mind that this robot is about earning money from the sale of the robot, or even the subscription fees, and never from the foreign exchange market itself.
Let’s imagine you’ll need a robot with a good win-loss ratio of 2:1. Quite simply, the robot should be profitable for 2 trades from 3. Just program the robot to enter the market randomly, and exit with a take profit point of half or less of the stop loss. As an example, a take profit of 50 pips with a stop loss of 250 pips will definitely offer you at least a 66.7% win-loss ratio.
The Web Site
This is the most important part. Ensure that web site is designed to impress. Liberal use of jargon, charts and testimonials have been known to work wonders. And remember to include a disclaimer that all earnings aren’t guaranteed, and that past profits doesn’t translate to future profits. To seal the deal, provide a one month trial of the software. Your visitors pay nothing until they’ve had a test drive of the robot. Alternatively, you may also provide the first 5 trades free.
On average, let’s assume that the robot is only going to enter 5 trades in the trial period and that the trades may have a win-loss ratio of 66.7%, 13.2% of your customers will have all their trades show a profit while another 32.9% may have just one losing trade.
Looking at it one other way, 46.1% or nearly 1 / 2 of your customers will have 80% or even more of their trades earn money. So, you can be sure that a large portion of the 46.1% will subscribe to the paid service, which you will offer you at a high price. Keep in mind that the purpose of the free trial is to give your customers confidence in your system, so that they are going to pay a premium to your service.
You now understand how to make great money with an forex robot software, not by trading the marketplace, but by selling a subscription or the robot itself. You’ve also seen how a robot can be created to look profitable, even though it is basically entering and exiting the market at random, or using quite simple rules. The objective of this information is to show you the way easy it can be to come up with a “profitable” forex trading system or robot, to be able to be more careful when you find such claims. While I can not say it for all those robots, I’m quite sure many forex robots are built to be sold, and never for trading the markets.