In this article, we'll tell you all nooks and crannies of robot trading-buyers-beware; what to do and not to do when you're going to buy one.
Why Traders Must be Wary Before Buying Expert Advisor?
Caveat emptor, an old adage you’ll most likely find in a free market. In essence, that remarks expressed a concern where buyer must scrutinize offered items before purchasing. Generally, you as a buyer should be really cautious at what you're going to buy. Especially when you're about to buy a trading robot.
When you buy an Expert Advisor a.k.a trading robot what you're actually buying is a digital copy of its original copy. Fortunately, all the copies work the same way, unless told otherwise by its developer. What we try to imply here is the fact that the developer can sell virtually limitless supply of his/her trading robot to anyone.
So, what's the point of buying one if its supply is virtually limitless? Well, the digital market is completely different from conventional markets. By conventional market, the price is mostly dictated from supply versus demand. However, digital market threw that basic principle out of the window because you're spending the money not on its material cost, but mainly on its development and marketing costs of trading robots.
In other words, the money from every copy bought will be used to advance the original copy to perform better or (most likely) to prolong the marketing campaigns. That is the best scenario, in a nutshell. Worse off, you can imagine all sorts of scams and hacks you don't want to deal with.
Sorting Out The Good, The Bad And The Scams
You can readily bump into all sorts of Expert Advisors on the internet. But only few trading robots are actually worth the look. How can you tell them apart, you ask? Here's how:
a. Don't be tricked by its ads.
Advertising is arguably the strongest sales force every developer to build a Forex Trading System from Expert Advisor a.k.a trading robot can exploit to attract customers. Be cautious though, NOT all the fantastic claims and promises of huge profit is actually achievable.
If it seems too good to be true or your gut feeling is telling you to step away, you're most likely right! Simple logic would imply such super-efficient Forex trading system from Expert Advisor can privately fund the developer to be wealthy and self-sufficient without the hassle to propagate it to others.
That's why you need to ask yourself, "does this Expert Advisor campaign have actual achievable profit gains?" or "what is the actual purpose of this marketing campaign?" You'll be surprised when you found out other foreign products piggybacking aforementioned trading robot package. It can be other Adwares or the sorts of unlicensed beta products "forced" to you, or worse (Malwares).
b. Good Expert Advisor sells itself
It's true, a good Expert Advisor that can generate a steady stream of profits doesn't need try-hard marketing campaigns. It will practically sell itself. A real, sustainable community usually revolves around that good trading robot. You can find them showing off their actual trading results (can be either positive or negative result) while using said Expert Advisors. That community is the marketing force of good trading robot instead of Ads campaign.
Be wary though. You need to discern the sincerity and actuality of that community and its members. Don't get fooled by fake community filled with made-up testimonials.
c. 24/5 product support isn't a myth
There's no perfect trading robot, a slight hiccup may happen every now and then. That's why you'll need product support to consult or troubleshoot your purchased Expert Advisor. Unfortunately, not every developer supports it.
On developer's end, maintaining 24/5 product support (or customer support) can be a major headache if they're understaffed or underfunded. And also, it's a good indicator for you as a buyer, whether the product is actually bona-fide or not. Go ahead and test it yourself, ask everything you need to know before purchasing an expert advisor. If their answer is beneficial and factual for you, it's a good sign. Otherwise, you can consider putting them on your blacklist.
d. Window-shop like a woman
No, you don't have to be as nitpicky as an actual woman on a shopping frenzy (you've been there, we know your pain). What we point out here is your attention to detail when comparing one offered Expert Advisor to another.
Step one; you can cross-check particular details of an Expert Advisor, in term of what is being advertised compared to its actual performance (look it up on google with keyword "review").
Step two; compare it to other trading robot with similar trading strategy, find out which one performs better. It may take a little bit of patience, but in the end you'd be satisfied with your best finding.
e. Skim the dreaded EULA
No one likes to read un-fun wall-o'-text scribbled endlessly on an EULA. However, if the developer provides one, you shall at least skim it and find the most impactful clauses. Those impactful clauses may range to standard notification like "CFDs and Forex trading is risky, losses can exceed initial deposit" to something specific like "these products is NOT reimbursable upon purchase". You can always refer to those clauses if you find any discrepancies or disputes pertaining to provided product.
However, extra precautions need to be exercised if you want to buy an Expert Advisor without EULA or any form of user agreements. You can end up being scammed and have no protection against it. All the points described above are the only basic method of sorting out good expert advisor from lesser, underperforming ones. You can always improvise your own method or consult it to your trading acquaintances.
Before you continue to read this article, please make sure that you are fully understand what expert advisor is. If you still don’t get it please read Anatomy of Expert Advisor.
Avoid these Common Mistakes
These lists of mistakes are commonly misconducted by beginners. Watch it out, don't let it happen to you!
You have to be very careful NOT to click on external URLs that may lead to foreign sites with traps like Adwares. This vicious cycle of unethical practice of aggressive advertising campaign may further bring yourself to "dark places" where you can find all sorts of dangerous executable files like spyware or trojan virus.
Believe us, it's a nasty business when you eventually got your account being hijacked by irresponsible third parties. That's why you need to check every clickable link. Don't get attracted by the flashy, wrong one. You can use Google Chrome as a browser. Hover on a link and you'll see a line of address on bottom left corner, that's the URL you'll go.
Rush-buying without further product study is commonly caused by an impulsive need to make profit or time-limited discount offered by developers. Such decision, more often than not, will cost you unnecessary expense. Calm your head, think with composed mind. Rushing never is a good thing in trading.
c. Freeware Malware
This one often attracts unsuspecting beginner to download an alleged "free" trading robot laced with malwares. Once the malware entered your computer system, your last resort to stop the malware is to reformat your computer from the beginning again.
That's why you have to be careful with free Expert Advisor that comes with unrealistic offers. Backdooring programs awaits you to fell into their trap. Not only beginner trader, even experts will have to exert cautions with an offered Expert Advisor. That's why the old adage "Caveat Emptor!" is true for all buyers.