These days, there is a lot of hype surrounding automated trading systems. If you are a regular subscriber to any Forex website, you have probably seen ads or received emails promoting trading systems. Every company claims to have the best approach and to be able to make massive returns. Of course, we all know that most of these are not even close to what they are made out to be. A majority of you have probably tried one or more systems and seen them fail. Of course, when you spend two thousand dollars on something to do your trading for you, you expect it to work and when it doesn’t, it is quite a disappointment. However, we shouldn’t really be surprised that these approaches don’t work.
First of all, it is sad to say that many people in the business of selling these systems do not really care about the success of their customers. They know that if they make it sound profitable and look cool that people will buy; and once they buy, what do they care if it doesn’t work at all?
Lack of Testing
Even if a company is honest and does care about their customers’ success, there is still several things that can make a system work like you expect. One common reason why even honest companies fail is a lack of testing. For instance, a company may develop a trading robot and test it on a master account and have very high profits for three or four months. They see the results and are so excited that they just can’t wait to get it out there so they immediately put it on the market for sale. The main reason this is not good for you, the customer, is because the testing was EXTREMELY narrow. A robot trading on one account, with one broker, and at the times that one trader happens to have it running does not give you a complete picture of whether or not this robot can be successful in the long run.
Current Market Conditions
Another way that companies go wrong is when they release trading software that is completely built around the current market conditions. Many times a company will discover a strategy that is raking in the cash and turn it into a automated trading system, do some quick testing and ship it out. When a customer buys the system, it may work for them for a while, but as soon as the market conditions change, the robot is useless. This is where you need optimization. A good trading system should be based on a proven strategy that has worked for many years and then is only slightly modified as the market conditions change.
With everything that I have talked about in this article in mind, we at Winner’s Edge Trading thought that we could build an automated system that actually works, and that people would consider a real investment when they saw that it truly made them money in the Forex market. Considering all of the things that these companies do wrong, we wanted to make sure we did a few things right:
1. Not claim that our system wins every trade and can turn a thousand dollars into a million dollars in a month – We understand that trading is not gambling. The way to truly succeed in Forex is to have larger winners than you have losers and win a solid percentage of your trades, and that is what we designed our system to do.
2. Test like crazy! – We understand that most approaches fail because they have not been tested in enough scenarios. Because of this, after we developed our system, we gave it to about 200 real traders, just like you, to test it. They all traded it their own way with whatever broker they chose, and gave us feedback constantly. With their feedback and testing results we optimized and critiqued the system until it reached its full potential.
3. Base it on a proven strategy that has worked for years – We based our system on Casey Stubbs’ personal strategy that has been successful for a long time and works in any market condition.
4. Make it optimizable – We created our system so that we could tweak the settings to make it more profitable when the market condition changes.
With some of those key components, the help of our 200 traders and hundreds of hours developing and optimizing, Winner’s Edge Trading came up with the Forex Catapult. The Catapult is, in fact, a trading robot; but unlike most of these other systems out there it has been properly built, tested and optimized to be successful both now and in the long term. It is not supposed to win a 100% of its trades or double the account size every week, but it continues to pull in profits week after week with solid strategy and money management just like a great trader does. This is why I believe that the Forex Catapult is truly the best trading system there is.
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