Part II. Forex Scam - Trading Bots, Signals, and Brokers. Commander in Pips: Let’s proceed with scam disclosure and potential traps that could appear in trading. Today we will start to talk about trading bots. Later we also touch the topic of trading signals services and more about scam brokers. Pipruit: Ok, I’m ready. Trading bots Commander in Pips: Once if you remember we already have discussed two different approaches to trading – mechanical systems and analytical ones. Today we will talk about first one, but not totally just in part related to scammers. What is a mechanical system or as it also often called bot, robot, expert advisor and so on? This is some kind of mathematical algorithm that is based purely on technical analysis and most often on indicators’ application which suggests entry/exit conditions and some money management – placing stop losses, changing lot sizes and so on. So, call it a bot, because it generates signals and open/close positions without human participation. You may sleep, swim, watch a movie or visit your grandma – no matter, the bot will continue to trade until you will stop it, or… until the margin call on your account. Yes! This is also possible. Pipruit: What is the problem with them? Commander in Pips: First, I suggest you to re-read the chapter, dedicated to comparison of analytical approach to trading and mechanical ones. Shortly speaking, there are two major problems with robots – past performance and optimization can’t guarantee success in the future. Second – robots do break sooner or later. The reason of both failures is the ceaseless market’s mutability.