The Bad News About Forex Automated Trading
September 3, 2008 by Trader Rich
I’ve read a lot about how automated forex trading systems just don’t work in the long run but I can’t conclude this from personal experience. I’ve never seriously traded forex using automation. The following is an email from a trader who can conclude this from his experience. I found it totally worth sharing.
I came across your blog this afternoon whilst casually surfing the various forums in lieu of watching rubbish on TV.
I find your search for trading success an interesting one as in many respects it mirrors my own experience in many ways.
I spent well over two years, pretty much full time, searching for automated solutions to trading, having been in the process automation business for 25 years. To summarise, I have concluded it is a futile exercise with the technologies currently open to the average retail trader. I have yet to find any expert that is reliable enough to be left trading on its own and have pretty much concluded that most are really curve fitting solutions. I have seen no strategies posted anywhere that are consistent or reliable and capable of being automated without significant risk. I see some that pertain to be profitable (Artemis would be an example) but it needs constant adjustment and tuning which makes it akin to semi automation, not full automation.
However, there are manual strategies that are available that are profitable; they just do not lend themselves to automation due to the ability of the human braoin to make decisons based on proce movement that are pretty much impossible for any expert to make. So I abandoned my search for full automation solutions a year ago and concluded semi - automation was probably the right route. I trade manually today, with a few automated aids.
Linked with that, money management and certainly trading psychology are massive keys to success, the first to ensure you are alive to trade tomorrow and the latter because it takes time to get your mental state right to be able to trade at all, and that is what takes the time Rich. Sure, you need to understand the basics of trading, but without the right mental state, you’ll never be consistently profitable.
Your target of 50% per annum is achievable so keep up your search.
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Great Post! I am just barely getting started with the Forex Trading and it was a huge help!
http://www.ino.com/info/107/CD3116/&dp=0&l=0&campaignid=3
What is this Artemis thing? I haven’t seen it and I’m searching for much the same thing- a Semi Automated system.
I’ve just started to study forex trading as it started to gain popularity in my country and many young traders are able to retire early by just trading. Mostly are done without robot.
thanks for the sharing.
I like the idea of automated trading systems, especially ones based around the Metatrader (MT4) trading platform. There are some pretty good ones out there and I reviewed a few I have on my http://www.forexboost.com site. The problem with these programs however it that they can be undependable. You really need to watch them to make sure you agree with the trades they execute. For example if price appears to be peaking out and your automated robot executes a buy trade, sometimes it’s best to close it. The best way trade, in my opinion, is to find yourself a nice forex trading strategy and make trades yourself. That was, you’re in full control and you don’t need to worry about what some program is doing on your behalf. Also, in the longer term, I do agree that these automated trading systems are pretty much break even if you’re lucky.
Thanks for confirming my thoughts all this while about robots.
Human brains, and human minds, are the best tools for fx!
I have had up and down success with automated forex software. I find if I can pick the right times to run them, I can stay in profit. But you really need to run them on a demo account first and monitor when its successful and when its not, and translate that data to a live account…
I hope this isn’t considered spam, but here is a great review of one that is giving me the most consistent success right now called forex funnel.
http://www.forexfunnelreviews.com
Forex Funnel is a scam !
they also made forex killer ! and forex razor and a few other B.S Trading system we ALL do not work, your just another click bank system product pedal ! go away ! there are a lot of reviews “MOST ARE Negative about that stuff http://www.forexscamcheck.com [b]Forex Scam Check[/b] has been around going on 2 years now
Hi there,
I’m a newbie to Forex Trading & friends told me auto-trading don’t work.
He got to review the following Software that looks at Forex Trading on a Mathematical perspective.
And they’ve shown that the program works and earn your profit every trading days.
Don’t take my word for it. Do check it out and let others know if it works or not.
http://mlnetbiz.com/hedgecow
Martin Lee
I think semi automation wil work best.
Hi guys,
I’m hoping someone can help me out here. I’m pretty new to trading. I’m looking for a semi automated forex software program that will make calculations to my inputed formula and make them pending orders one at a time and will also delate pending orders when certain stop losses or take profits are reached.
Any help would be much appreciated
Cheers
Anaru
I for one know a hedge fund that has been making 30% p.a. for five or six years using an automated forex system. I would not discard automated trading just because junk expert advisors donwloadable for free from random online fora do not bring (surprisingly!) any long-term profit. I think it is a question of sophistication. As to the manual trading, if you can say precisely why you did or did not eneter a particular trade, your system can be translated into an algorithm. Only the number of rules may be higher in this case than in most automated systems.
I have also not too good experience with Automated forex trade. I agree with the reply that you have received. ti is better to plan out strategies before you actually start forex trading, because it not just save you but it also lets you to make forex earn for you.