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Forex trading robots sound great, don't they? There's currently a lot of hype surrounding them that makes them appear to be the perfect way to earn an income on autopilot. When you look a little deeper, the truth is very different. Before you get burned, it is wise to consider something about these "robots". In this article we'll look specifically at what a forex robot is and the issue with them that most people ignore when caught up in all the hype.

Is it really a robot?

A forex robot is not an actual robot. It is a computer program with some predefined algorithms. Those algorithms tell the software how to trade currency markets. For example, the algorithms might contain information such as daily trading limits and risk settings. Often these settings can be changed to suit an individual investor (high risk investor versus a conservative one).

Backtests are not a good indicator of future performance

Most forex robots out there only use backtests as evidence of a trading history.

If you are looking at a forex robot that has only got performance results through backtests then you should be very careful. Backtesting is a process of gathering past market data, then using computers to check the performance of algorithms across that data. Often, an algorithm is discovered that performs very well across the data. However, because market conditions are not constant, there is no guarantee that the algorithm will perform well in the future. Some forex trading robots are being sold with only one algorithm that has only been exercised using backtesting!

There are good forex trading robots available, however my strong advice is to investigate the performance results before you commit to buying one.

IvyBot at http://www.IvyBot.org right now.

Is FAP Turbo a scam? Its creator Steve Carletti has made some pretty bold claims, but is he speaking the truth? In this article, I will look at some of FAP Turbo's features, and at the bottom, I have a link that you can use to check out this product for yourself.

Here are the best features of Forex Autopilot Turbo:

* It's the only Forex trading robot that provides you with live trading proof of its performance, and there are updates every 15 minutes. Most Forex trading robots just show results of back tests, which tend to be much different than real life trades

* With this program, you are given the option of hosting it on a remote server. This way you don't need to have your computer on, in order for the software to work

* FAP Turbo is very easy to install

* You can start trading with a small amount of money, even 50 dollars

* It has a low drawdown. Most systems have a drawdown that is in the 10 to 20 percent range, but FAP Turbo's is only .35%! It also has a winning rate of 96%

* It caters to those who are both experienced and a novice

* It has very tight risk controls, which is just as important as making money

Some of the conclusions on the product's home page may be a little exaggerated. Since I started using it, I have not doubled my money, but I have done well. It is the best foreign currency trading robot that I have ever usedFAP Turbo at http://www.moneytradingadvice.com/forexturbo.html. You can also get the FREE ebook Forex Cheat Sheet

In forex trading the exit strategy really is very important. Many people spend all of their time developing a winning system, and then once they've done so they will employ a strict stop loss policy to minimize their losses. However they will then neglect the exit strategy because they are just happy to be making some money, but in the long run you really do need to develop an exit strategy that will maximize your gains.

One of the very best strategies you can use is the two part exit strategy. This is the exit strategy I use myself when I'm trading my 4 hour trading system, and it's arguably the main reason why this system is so profitable.

I mainly trade the GBP/USD, EUR/USD and USD/JPY pairs using this method and my exit strategy is always the same. As soon as the position is in profit by 50 points (or 40 points if trading the USD/JPY pair) I will close half the position and let the other half run, moving my stop loss up to break-even.

This way not only do you guarantee a profit from nearly every trade you enter, but you can also get yourself into a free trade position with the second half of the position very early on, so you can hold out for the really big gains if you so wish.

The great thing about this strategy is that even if a trade doesn't work out, it will nearly always move at least 50 points in your favour before reversing, so you will often profit from the bad trades as well as the good ones.

This is exactly what happened yesterday on the GBP/USD pair. The EMAs that I use for this particular strategy crossed upwards on the 4 hour chart and I went long at 1.6402. This trade didn't work out as planned but it still went up around 70 points which was more than enough to bank my usual 50 point profit with half the position. The stop loss for the second half of the position was then moved up to break-even and it was later triggered, but this was still a profitable trade overall because of the two part exit strategy that I use.

The hardest part is deciding where to exit the second half of your position when trades do move in your favour. This is probably where my system could be improved slightly, because I usually exit a position based on gut instinct mainly, using a few technical indicators in conjunction with established support and resistance levels as guidance.

However the overall point I want to get across is that you really should consider using a two part exit strategy when trading forex because this will allow you to target the really big points gains whilst also ensuring that you still make some money from the less successful trades as well.

This is a strategy that many of the professional traders use, and if you want further proof of this you only have to look at the new Forex Income Engine 2.0 course from Bill Poulos. Each of the three day trading methods included in this course use a two part exit strategy in much the same way.

Forex Income Engine 2.0 is a day trading course from Bill Poulos that provides you with 3 separate intraday trading methods. These methods can be used in any time frame so are therefore ideal for day traders, or people who only have a limited amount of time to trade every day.

I was lucky enough to receive a review copy of the Forex Income Engine 2.0 course prior to it's official launch so let me give you my full review of this product:


Forex Income Engine 2.0 Course Contents

The course itself is a physical product that is delivered directly to your door. It consists of 7 CD-ROMs, full colour reference manuals in a 3-ring binder, trading blueprints that summarise each of the 3 trading methods and a quick start guide to get you up and running.

The 7 CD-ROMs are as follows:

- Bonus Module - Forex And Trading Basics (51 minutes)
- Module 1 - Background And Overview (39 minutes)
- Module 2 - Ignition Method (98 minutes)
- Module 3 - Overdrive Method (62 minutes)
- Module 4 - Spring Method (67 minutes)
- Module 5 - Forex Brokers, Charting Software And Trading Platforms (85 minutes)
- Module 6 - Bringing It All Together (46 minutes)

Trading Method 1 - Ignition Method

The Ignition Method is a simple trading method that targets short-term continuation trends. Trades typically last between 2 and 6 bars and the profit objective can be anywhere between 10 and 50 pips, depending on the time frame you are trading and the set-up conditions of the trade.

This method, just like the two methods below, employs a two-part exit strategy which helps you to maximise your profits, whilst using a strict stop loss policy to minimize your losses.

Trading Method 2 - Overdrive Method

The Overdrive Method is my favourite method because it's gets you into a trade near the beginning of some of the strongest trends that occur throughout the day. Profit objectives are in the region of 25-100 pips (depending on which time frame you use) and I have to say that most of the time these objectives are fulfilled.

I've been testing this method out on various time frames from 5 minutes up to 30 minutes and my overall success rate is extremely high, particularly on the 15 minute and 30 minute charts where the trends are a lot stronger.

Trading Method 3 - Spring Method

The final method included in the Forex Income Engine 2.0 course is the Spring Method. This method looks for trend reversals and typical profit targets are again between 25 and 100 pips.

The problem with this method is that you don't tend to get as many set-ups as the previous two methods. However from the limited amount of back-testing I've done on this method, it does nevertheless appear to generate some decent profits when set-ups do occur.

I don't personally think I will be using this method as much as the previous two methods, but it's certainly a set-up that you need to keep your eye on because as Bill points out in his course, when a Spring Method trend reversal is in progress, you obviously don't want to be trading either of the other trend-following methods because they will usually fail.

As I've already said, these specific reversal patterns do not occur that often so most of the time you can concentrate on trading the Ignition Method and the Overdrive Method, which is what I've been doing.

Additional Modules

One thing I like about the Forex Income Engine 2.0 course is that as well as the 3 profitable trading methods, there are also modules covering risk management and discipline, which are two crucial elements of successful forex trading. Plus if you are a relatively inexperienced trader, there is also a bonus module that will teach you everything you need to know about forex trading. So this course really does cater for all traders, regardless of their experience.

Learning The Methods

The methods themselves are relatively straight forward. They all use the same 4 technical indicators and these indicators are commonly found in any charting platform.

Each method is explained in great detail and is demonstrated numerous times using lots of different examples of live trades. However I personally had to watch each video about four or five times before I became fully familiar with the intricacies of each method. It's the little things like learning where to place your stops, and where to move your stops as trades move in your favour that take the most time to learn.

If you do buy the course, however, you do have an advantage because you are given trading blueprints of each individual method which you can keep next to your computer for easy reference. (I didn't have this luxury when I received a review copy of this course which is probably why it took longer to learn each method).

How Profitable Are The Forex Income Engine Methods?

I've now had time to test out all of the methods and overall the success rate seems to be very high for each of the methods, and best of all they do genuinely seem to be profitable on all the intraday time frames (although I find the 15 minute time frame to be the most profitable).

It's obvious to me that each of these methods has been tested over and over again because the stop losses and exit points have clearly been designed to extract maximum profits from each and every trade.

In my experience the Overdrive Method is the one with the highest success rate and is easily my favourite method of the three. I've been trading this method on the 15 minute charts of the GBP/USD, EUR/USD and USD/JPY pairs and I've been experiencing a winning ratio of over 90% in the last week or so. After a while you get to know which set-ups are most likely to be profitable so it almost becomes second nature.

The Ignition Method isn't quite as reliable, particularly on the shorter time frames, but nevertheless it can still boast a success rate of around 60% in my experience, and even higher if you use the 15 minute chart or above. Therefore it's still very profitable because you have to remember that the profitable trades will more than compensate for any losses that you may incur because of the two part exit strategy that is employed. Therefore this method still has the potential to increase your account in the long run and I will certainly be continuing to use it on the 15 minute charts.

The Spring Method also appears to be profitable but I haven't tested it out that much to be honest. You wouldn't want to be trading this method in isolation because there are very few set-ups that meet the criteria, but to be fair the price does seem to reverse nicely, and therefore generate some decent returns, on the rare occasions when these conditions are met.

Final Comments On The Forex Income Engine 2.0 Course

I've always been slightly critical about day trading because I've never found any trading methods that have been able to generate consistent returns on these shorter time frames. However I have to say that Forex Income Engine 2.0 is easily the best day trading course I've ever come across because the methods themselves, particularly the Overdrive and Ignition Methods, are actually profitable.

What I like about these systems is there is a clear logic behind them. Any losses you incur are kept small whilst the winning trades employ a two part exit strategy, just like I do with my 4 hour trading strategy, in that half the position is closed for a small profit, and the second half of the position is left to run until it's conclusion, and essentially becomes a free position because you will have moved the stop loss up to break-even by this point.

Another reason why I'm a big fan of this course is that the methods themselves can be used throughout the day if you so wish because they trade a variety of different trading conditions. For example you can use the Overdrive Method to get you into a trade at the start of any strong trends, then you can use the Ignition Method to trade any continuation trends that may occur after a brief pull-back. Finally if the right conditions are met you can then use the Spring Method to trade any trend reversals.

So overall I can highly recommend the Forex Income Engine 2.0 course. It's not cheap by any means but I think that in this case the price really does reflect the quality of the product. You are paying for 3 profitable day trading methods that you can use for the rest of your life, so in the long run it could easily turn out to be a fantastic investment.

If you're not entirely satisfied with the product you can always return it within 90 days and receive a full refund, but if you take the time to go through all of the materials and learn each of the methods, I really don't think you will want to return the product.

Anyway I think I'm ready to wrap up this review now. I didn't intend it to be this long but I really am very enthusiastic about this course and wanted to get across all of the main points.

If you do have any questions about the course you are given unlimited email support for a year after purchasing the course and if you buy the course from the link below, I will be happy to assist you myself as well via email because I'm now using these methods myself on a daily basis.

Here's the link to the Forex Income Engine 2.0 course:

—> Forex Income Engine 2.0

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