Hi everyone! happy new year,
I have heard some different opinions about automated Forex trading,
Is it safe? or do you take a risk while using these?
Do you know any good and reliable one?
It is very risky to automate trading because it can mean you have overlooked time of day or news announcements. The only one out there that I know works some of the time is called Trendsignal. The developers and company directors are actually traders themselves but you have to emulate their trading style bearing in mind these guys trade off 2m accounts. So many are not and rely upon robotic fib lines for entry and exit. Also there is no such thing as a “Black Box”.
You’re asking two very separate questions. Automation of anything has been proven safe since the 70s. Computers perform operations, drive trains, regulate nuclear power stations and land planes. If a good strategy has been outlined, computers are 1,000,000 times better than humans at executing these strategies 99% of the time. One day you can even expect expert systems to diagnose patients and preside as judges over court cases - its not about computers, it’s about capturing complex concepts in discernible and reliable steps and feeding these into machines so asking about believing in automation is with respect non sensical.
Your second questions is a very important one - about knowing any “good ones” (automated trading systems). But the question is also focussing on the wrong aspect. That a system has been automated provides no warranties as to the effectiveness of the system until it is tested in a live environment.
Consider this. Would Airbus finish writing a new auto pilot and auto lander and test it on a commercial plane in the first instance? Even the original programmers wouldn’t take the flight without testing - which could be done first on a real physics simulator then on unmanned test flights over the desert.
When you buy an Expert Advisor or other robot the second biggest problem is many have not been tested in a live environment for a six months or a whole year but quite amusingly even if they were, last year would be no indication as to performance this year. The biggest problem is you do not know what strategy is inside it so how can you believe in a system you didn’t write and don’t even know? Much less put your money to it? Same question applies to human fund managers also mind you.
Bottom line strategies work.
Strategies can be automated.
Whether the $97 dollar system you buy will make a million is another story?
Can a teenage hacker in his bedroom write an auto lander for an Airbus? Sure. Do you want to fly with it after he “backtests” in a simulator? It’s up to you.
Believe in strategies.
Believe in automation.
It’s best if the strategy is your own.
And best if you at least can read basic code to see that your strategy has been automated faithfully.
The real insanity in forex is buying a robot and managing it yourself. Use a money manager with a credible record instead. You cannot learn anything mirroring a robot so leave it to an invested money manager. As you didn’t write the robot you cannot optimise it for your broker and platform nor can you modify it as per your observations or trading wisdom.
People need to learn forex or put their cash in managed fund. There is no logic whatsoever in buying an EA - indicators yes but not a trading bot - as u cannot control it or manage as its guts are a complete mystery.
More here: 301 Moved Permanently
Automated inspiration and success stories: http://abrahamtrading.com/files/File/BloombergLarge.pdf
Also look up AHL managing $23billion with computers.
Just my 2 pence.
No. I do not believe in automated Forex trading.
There are different opinions to your question,
If say it is risky as most people think but if you do want to try it or hear
more about there is information here.
DailyForex | Automated Forex Trading
So, “believe in”…interesting way to put things. I know buckscoder makes a income, and has for over a year now, using bots of his own design.
I know of others who use semi automation or full automation and do extremely well.
there are hundreds (a few thousand?) computer software based trading firms. some are hedge funds…some exist in other capacities. This has been around since the 70’s, as stated above.
Check out Ronald Ray Gun over at forexfactor.com he ran a few hundreed up to i think 20K in about 2 months using his own self created trading bots.
from program trading to HFT models, PHD mathmaticians have long been creating computerized trading systems. by the way…some of these models are profitable nearly every week…for years at a time. They are so common…they even have their own slang nickname: “Quants” hee hee! 
I know OF a guy who sold a computer trading system to a major investment bank for 20 million…this was back around 2001
as for retail forex? well…here’s a link to the automated trading championship results:
Automated Trading Championship 2008
From 2008.
This is old hat guys. no belief necessary. the amount of proof that auotmated trading works exceeds the amount of proof that you are indeed exisiting in whatever room you are existing in, and that your name is what you say it is, and you are sitting in whatever chair you are sitting…reading this right now.
But… like all that fancy schmantzy stuff… don’t expect to go buy your own for $50 online and make money. A good bot is worth potentially millions. And a good one is the result of someone who can marry the ability to create very robust trading methods…with very specific computer programming skills.
Trading is hard enough already. figure that out first…and then u can think abou ttrying to create a bot to do it for you.
Jay
Well, I really don’t believe in manual trading if the person is just like me - kamikaze type :56:
kamikaze type? you are the worst 
http://i1108.photobucket.com/albums/h405/FXPips/sundayeatest.jpg
Here is my EA that I have been working on this week…
Results backtest From Nov8th, thru today… And, this is generous figures, with small TP
I cant figureout how to get the pic focused better
NVRSleeps… Modelling quality of “n/a”… If you want 99% quality let me know. I do automation as well. May be able to help you there. Just don’t think you can make 10%/day.
That would be great Clark, I will be back in an hour, got some things to do,
But so far, this is a monster, Its my strat I usually try to follow,
Don’t be surprised when the 99% quality makes you think otherwise of the system. I’m not saying your system is crap… Simply that the quality kind of matters…
yeah, Im curious
Follow up to IKOS FX link I posted earlier:
http://m.hedgefundsreview.com/hedge-funds-review/interview/1648722/the-ikos-fx-fund-ikos
Edit: this is a review of their managed futures fund (and strategy) started in 2008 not their spot/cash activities and older strategies which go way back.
I have seen it somewhere… it kind of helps
no i dont believe in automated trading though it takes the emotions away. Manual trading is the way to go
“Different strokes for different folks.” Automated trading works.
Saying you don’t believe in automated trading is like saying you don’t believe in gravity. Big trading firms spend absolute fortunes on algos and quants to write and maintain them. They don’t spend all this hard cash expecting no return. It’s a lot tougher for us retail lot though. Most don’t have the requisite skills to write, properly test and maintain over time to retain profitability. I know I don’t so stick to manual trading.
SUPERFUND.COM - Completely automated fund since the 90s
http://www.superfund.com/HP11/Main.aspx
CORRECTED - CORRECTED-(OFFICIAL) Superfund shuts 6 offices including S’pore, | Reuters
I heared radio today as much as 70% of equities volume are being traded by computers…