Hello everyone
I am a bit new to forex trading.
I started trading in this domain just a month back. Earlier I traded in stocks.
I have heard of an Algorithmic Forex Trading strategy to maximize profits. Could anyone tell me more about it?
I believe it takes the history of currency pair into consideration. I’d like to be guided as how to use it to get the best results!
Thanks
Alan
I also don’t know about this concept. Why don’t you complete Babypips school ??
An algorithmic trading system is not a name for a individual system, rather it is a set of formulas which are computed into a piece of trading software to auto execute trades when certain scenarios are met. Often called a “Black Box” as these algo’s are secret and designed by top level trading firms by extremely intelligent individuals. Some people joke about these guys suggesting that they are making new algo’s which find out what other algo’s people are also making (which is of course not possible)
A simple example of algorithmic trading could be considered when talking about high frequency trading (HFT)
Thanks Jezzode. I have heard there are analysts providing such services?
And even automated softwares which help with trading by using these formulas? Can you suggest me any?
There is a difference between algorithmic trading and that of automated trading software.
Algorithmic trading “black box” is used by commercial banks and trading organisations. These are not for sale to the public and used in house by the bank/firm in question. Because competition is high these are kept secret - period.
Automated trading software which can be purchased by the public is different. It’s designed by the general public for the general public. They have a very bad name and for a good reason to. Why would a individual sell you a auto trade script which is profitable (they would use it for them self and make huge sums of money). It’s a common scam with people selling auto trading software, I’ve never seen one work for any extended period of time and I started an interest in FX in 2008.
I would suggest you stay as far away from any person selling you auto trading software.
Learn how to trade yourself, even learn how to code software and design your own personal auto trade software. You will know how it works like the back of your hand, and when something fails you will know what it is. You will not know this when you have purchased it from a individual. There really is no short-cut when it comes to making money trading, regardless of it being FX or other forms.
Thanks Jezzode 
Actually I was a bit confused.
One of my friends uses forex-tradecopier for Online trading. He has generated pretty good profits.
They have explained the strategy and how they use it here.
Any ideas about this?
A “black box” trading system is simply a trading system where the rules are kept hidden from the user. Any EA you would purchase online that only supplies the compiled code is considered black box. “Gray box” algorithms are systems where parameters are changed and these includes retail, commercial systems. But again, the actual logic of the “gray box” is held in secret.
What you’re referring to is parasitic trading, James. It’s NOT a rumor, and has already been done. Do a quick search online, and you’ll find at least a decade of academic journals published on it. There are also commercial products that claim to do this, whether they actually do that, I doubt. But the large funds have already been trading it.
Here is your man, just ask Clark for more details. I knew it would only be a matter of time before he picked this thread up and dumped me, lol.