Automated Forex Trading System Limitaions

I have been using an automate trading system. While trading with automated system, I have realized that it has limitaions too. It is an unfortunate thing that not all EAs handle errors and other unexpected events corerctly and lead to huge loss. There are multiple chart patterns or way analysis and most of the fundamentals are extremely hard to code into our trading program. Also, it is hard to achieve sunning expert advisors from your home because it will need some dedicated servers to run tarding robots. The main concern is programs do not have any mystical human gut feeling. There are many traders who would not be pleased with it.

You guys may give your opinions too !!

If you can’t handle with these limitations, why you are use this kind of trading?

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Applications are only as good as developer made them. That is why I use only automations I’ve written myself :slight_smile: Error handling and having protocol for unexpected events should be implemented in the code. If you use black box EA from untrusted source, your money is on the line.

EAs also require MT to be ran on server, which is not easy for free. Still, with GOOD strategy you should be able to buy monthly VPS subscription and run it through cloud saving yourself some burden.

Python is quite good alternative for EAs. It has some ready to go modules for backtesting, technical analysis and works well with variety of data feeds. Even coding chart patterns, candlestick patterns is not a big issue. Additionally fundamentals are also a possibility, given you have data source. Without data source it is technically possible, but may become huge project on itself (using web scraping, natural language processing with a hint of machine learning).

Gut feeling? Should it be part of strategy at all? :wink:

To sum up. My opinion is, that every well defined strategy should be possible to automate and every automation can be reliable. Reliability here is a function of effort and sometimes money → VPS, hiring developer, learning to code yourself, running brainstorming with trading buddies etc. Definitely I would not say, that these are limitations :slight_smile: These “limitations” are flaws - flaws in process, flaws in the code.

I’ve never used an EA but I subscribe to the view that the best strategy must be as strictly definable as if it was going to be run by an EA.

However, it seems to me that many of these systems are red hot on recognising entry signals quickly and accurately, but they take less account of “signals” to stay out. “Stay-out signals” are the ones I actually put more faith in.

The concern is not of handling it, but yes there are few things which can be improved and can be more compatible. No I am not using any EA for trading, this is the solution I guess.

I have came on to a decision i.e. not to use an EA for trading

Every kind of trading have pros and cons, trading via EA’s is one of many solutions and it is trader job to find what work for him.