We all know that there there are automated trading championships which take place every year. And we also know that there are eas created for those championships which trade hands-free for 3 whole months and the winning ones actually do really well. So then my question is then why havent any of these robots been available on the market because frankly I would trust them more than some of these fapturbos and mdps and megadroid eas sold on the market which I think are overhyped by marketers.
I don’t know much about the 3 month trading challenges; the ones I watch (and enter) are the one month ones. Here are a few things I have observed and perhaps it also applies to other championships and partly answers your questions. The first day leader and the first week leader very seldom win the competition. In fact, they usually blow their accounts out within a few days of leading. They are going for broke and not using smart risk management. They are hoping to get on a hot streak that will last the whole month. The other thing I have noticed is that there are no back to back winners. That tells me that their EAs hit the optimal conditions once and aren’t suited for the long haul. Think of a grid or Martingale type of EA that can survive for a month or two.
The other factor to consider is that these competitions are held in demo accounts. Some scalping strategies will perform spectacularly in demo. In live accounts, they get hit too often with slippage, requotes and spread widening which kills them. The creators of these EAs are probably aware of this and get a kick out of competing, but don’t want the hassle of selling and supporting their work.
I watched these EAs, almost all the advisors involved in the competition, after that lose the money, even if occupy the first place. It seems like simply to fortune.
The winning EAs are bogus. If you have a ton of EAs entered in a contest, you are bound to have a few that perform well. It’s not that the strategies are any good, its just that you only see the luckiest strategies at the top of leaderboard at the end of the month. Beware. That’s my two cents.
XIV
I guess quick profits!= consistent steady profits
I absolutely agree with you. Exactly the same opinion.
I just wonder if there are some folks out there so much more aware than the rest of us. I mean - for example - if the markets respond in a cyclical type of environement - where generally speaking from Dec - March - it usually rises, then sometime in March through June -it typically falls - etc. . … wouldn’t you think that
writing an ea for competition - can in fact be just for that - the competition - I mean if you’re trying to win a prize of $x.xxx dollars – - what would you care if the thing works past the competition timeframe - it met it’s goal.
I’d ‘beware’ of anything that I cannot understand my own self.
Huh?
The currency markets are never up or down. Individual currencies might be trending up or down and I have heard of the Yen having some cyclical behaviour, but overall it is impossible for the currency markets to be “up” in the same sense as the stock market which you seem be confused with.
Quite frankly, I doubt if anybody writing EAs takes the fundamentals into consideration, but perhaps your research has uncovered something different than mine. Every article and interview I have read on robots deals with technicals and price action.