Black box is a familiar term used to described a number of different things, it gives connotations of reliability and trust but also at other times the impression of mysteriousness and magic, but always an element of not knowing what goes on inside, and as far as forex is concerned it’s the latter we need to worry about.
Forex Black Boxes.
When you come across a forex black box, you need to be very careful and think about in which context the black box element is in. Take the aviation industry’s black box, this is seen as an essential piece of kit that will reveal all that will have happened preceding a crash, nobody knows what’s in the black box until it is retrieved and analysed. Take a magical mystical black box though, and nobody will ever know what goes on inside, and a forex black box is not much different. A Black Box in forex is used as an alternative term for a forex robot or automated trading, a program that will execute trades on a system on your behalf, but you have no idea what goes on inside. And this is the main thing you need to be aware of, you are letting something loose on your money and you have no idea what it might do.
What A Black Box Could Do To Your Forex Account.
Of course your ‘super duper forex black box system’ could do what it says it will, it could turn your modest trading capital in to a financial rock, but the likelihood of this happening is slim. The most likely thing to happen is that you will loose money straight from the off, you will probably put this down to the settings, so you need to tweak them, you might then make some profit, but soon you’ll be incurring losses again, so more tweaks. But what do you tweak, you have no real idea of what kind of code there is in this program so how will you know what effect changing some of the settings will really make? What’s more is that the program might well have a bug in it, it’s quite tricky to identify bugs in a program as it is, let alone when your are looking for bugs in a program that will never give you consistent results. The other possibility is that the software that you are entrusting with your hard earned forex capital is fraudulent, it is quite easy to create a Metatrder4 EA that can be remote controlled by the seller, and that leaves you open to just about anything happening to your account including withdrawing the money and depositing it elsewhere. It is actually very difficult to get a program that will just steal your money but it is far from impossible, and I’m sure some virus developers are on the case.