Automated Forex Trading Systems – Can I Trust My Investments to Them?
An automated or robot trading software is simply a program written based on technical indicators which executes buy or sell trades when certain conditions are met.
There has often been a raging controversy in the past over whether currency traders could leave their trading activities in the hands of automated forex systems or not. In this article we would try to settle this controversy/clear the air over this.
Forex traders who have had many years of experience, have developed (or built) robust trading systems and have developed the discipline to follow their system's rules would definitely not wish to leave their trading decisions for robots to make. All traders know however that developing the psychological discipline to stick to a system's rules could be very difficult, especially during losing trades. Robot software, apart from offering this freedom from destructive emotions, are also not prone to the mental tiredness that a human would develop after sitting at the computer for long hours on end, and so could place a higher frequency of trades based on the trading system rules.
The problem however has been that, until recently, most automated programs have been written with inferior code - thus making errors in judgment which a human would not.
But any doubts about the effectiveness of a well-written forex robot program should be abolished on viewing the results of the last 2008 Automated Trading Championships. In these contests, forex trading software are installed on Demo Accounts with an initial account balance of $10,000. They are run 24/7 on a server for three months, and at the end of this period the robot with the highest account balance wins. The winner of the October to December Championship had grown its account to over $169,000!
The problem then would be how to find similarly well-written commercial robot software. But that would not be difficult, because one only needs to find one that would work well in forward-testing (i.e. in live trading conditions).
Most automated trading software results presented online are only limited to back-tests, in which the results could easily be curve-fit to show favorable results. When subjected to live trading they often fail woefully.
To learn more about how to find a forex robot that would perform satisfactorily in real-time, please visit my blog [http://secretforextruthsblogspot.com/] to learn more!
There has often been a raging controversy in the past over whether currency traders could leave their trading activities in the hands of automated forex systems or not. In this article we would try to settle this controversy/clear the air over this.
Forex traders who have had many years of experience, have developed (or built) robust trading systems and have developed the discipline to follow their system's rules would definitely not wish to leave their trading decisions for robots to make. All traders know however that developing the psychological discipline to stick to a system's rules could be very difficult, especially during losing trades. Robot software, apart from offering this freedom from destructive emotions, are also not prone to the mental tiredness that a human would develop after sitting at the computer for long hours on end, and so could place a higher frequency of trades based on the trading system rules.
The problem however has been that, until recently, most automated programs have been written with inferior code - thus making errors in judgment which a human would not.
But any doubts about the effectiveness of a well-written forex robot program should be abolished on viewing the results of the last 2008 Automated Trading Championships. In these contests, forex trading software are installed on Demo Accounts with an initial account balance of $10,000. They are run 24/7 on a server for three months, and at the end of this period the robot with the highest account balance wins. The winner of the October to December Championship had grown its account to over $169,000!
The problem then would be how to find similarly well-written commercial robot software. But that would not be difficult, because one only needs to find one that would work well in forward-testing (i.e. in live trading conditions).
Most automated trading software results presented online are only limited to back-tests, in which the results could easily be curve-fit to show favorable results. When subjected to live trading they often fail woefully.
To learn more about how to find a forex robot that would perform satisfactorily in real-time, please visit my blog [http://secretforextruthsblogspot.com/] to learn more!
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