There is certainly no reason not to diligently test and refine your forex strategy, but using back-tested trading results is an extremely misleading way to sell a forex product.
Most people who enter the Forex Market to speculate on the normal fluctuations of the market rely on Expert Advisors, or commonly called Forex Robots to conduct the buying and selling of currencies automatically. Simply, the Expert Advisor or FX Robot use a pre-determines set of parameters to enter and exit the market seamlessly.
Most of the so called Forex systems that are being advertised today use a process called Back-Testing. These Back-Testing results are used to mislead the new Forex Trader into buying a product. I will get to how the entire process works in a bit, but first it is imperative for you to realize just how phony these phantom results are. Have you seen websites selling an expert advisor that produces ungodly amounts of money, or the very amusing 99% winning trades claims? How about the ones that will guarantee profits, or you will get your money back ? Now, why on earth would anyone with any sense sell such a profitable winning system for $97 dollars? Am I getting your attention yet?
These very shady system sellers are simply trying to entice the sheep to buy something that is basically worthless, and this is how the scam works.
First, they use a basic system with many inputs that can be adjusted as needed on past data to make the results appear excellent. Second, all the trade data is based on past data. Finally, these rodents adjust the expert advisors inputs on the past data to falsely advertise their system. Now, it is time for these folks to hire a marketing company to peddle this pile of dung to people who do not understand how it works. I can say this because I was a victim of their tactics.
The Metatrader Tester was created to test strategies and inputs, not too sell a product. Do not fear, because I have a few steps you can use to avoid buying worthless forex system’s.
You need to find a forex system seller willing to post all live trade results on a daily basis. Most people call this forward test results, but we like to call it live trade results. The Expert Advisor needs to provide a trial of their product before you commit to it. When you start trading currencies, nothing can be more important than excellent customer service to help in times of trouble. If you have to wait days for help, or to answer a few questions, that should give you an idea of who you are dealing with.