The Myth Of Predictive Automated Forex Trading Software

One of the biggest myths in the Forex markets today is the existence of automated Forex trading software programs that can “predict” market movements and henceforth deliver a tidy profit to your trading account. Well I’m sorry to burst your bubble, but no one can predict the future, and that extends to automated systems as well. After all, even the best minds in the world cannot predict natural disasters, economic decisions and special events around the globe. All of these factors affect the markets, so if you can’t predict them you certainly can’t predict market movements.

The Myth Of Predictive Automated Forex Trading Software

Want further proof that “predictive” automated Forex trading software is a myth? The fact is, even if any software could predict what would happen in the market, the simple act of following those predictions will disrupt the balance of trading and nullify the predictions. In other words, no perfectly modeled system can remain perfectly modeled because the simple act of becoming a participant of the system will disrupt the modeling. This simple truth reinforces the fact that automated systems cannot in fact predict the market!

How Automated Forex Trading Software Wins Without Prediction

The truth is that profitable automated Forex trading software does not in fact need to predict market movements to make money! Successful software programs rely instead on replicating good decision making in situations where there is a higher probability of profit than usual. A good analogy of this situation in play is the phenomenon of card counting in the game of blackjack in the casino. Normally, the game favors the casino, but in special circumstances where the deck is “loaded” with favorable cards the player has the advantage. In the same way, Forex generally doesn’t favor the trader, but in special circumstances you can get the edge.

With that in mind, forget any system that claims that prediction is possible because it’s very likely that it’s a scam. After all, if someone lies to you once to try to convince you to buy to their system, can you really trust them? Of course not! Instead, look for programs that explain the true process to you and how they get the edge in their trading. If you can find a piece of automated Forex trading software that allows you to do just that, then you will have a potential gold mine on your hands!