doesnt matter if its automated. it has to WORK. in other words: it has to be profitable. all boils down to intelligence and approach. no matter is the process of trading is auto.ated or not.
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There is a book by Kevin Davey, “Building Winning Algorithmic Trading Systems” - it talks mostly about analyzing automated strategies.
The author states clearly that all automated strategies eventually stop working and need to be retired. Thus - a trader has to develop criteria on when to stop running a particular strategy.
Kevin Davey suggests using walkforward analysis, Monte Carlo analysis and monkey analysis.
According to him, walkforward analysis results can forecast the real trading results reasonably well.
Monte Carlo analysis can tell statistics about the expected behavior of the system (probabilities of various drawdowns, earnings, being profitable in a month, etc.)
Monte Carlo + monkey analyses are used to determine when a strategy does not work anymore (goes beyond its statistical boundaries) and needs to be retired.
Personally - I like how this testing process rips to shreds most (but not all) of my strategies. It’s better this way than the market does it. I have ‘retired’ one XAUUSD strategy last year but I am still hesitating if the boundaries I put were too restrictive.
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Automated trading can work for some while fail for others at the same time. Can’t say anything.
I’ve been using an EA for the past few months and I’ve been so surprised by the results. I don’t think I’ll ever look back now honestly
Im using this penny robot EA for a month now. Some days it closes more profits, some days lesser, but overall, still a gain. I’ve blew up account doing copy trading from some masters. But since I’ve found this EA, I don’t think I’ll go back to manual trading, at least not so soon.
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Hi,
Yes, i am following a bot called LBF Platinum for 4,5 months and it made me 34% Gain.
The bot is managed by a team and charges only 20% performance fee.
I am very satisfied, and as the team is bringing out more bots in the future, i will be able to spread risks over several bots with different strategies.
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I’ve been doing automated trading for some time, there are some good EAs out there, I’ve been using Penny Robot in the past few weeks and with decent performace. They are not only cheap but also offer a free trial if you care to try…
no matter how perfect your EA technique is, as long as your EA doesn’t provide anti news API, it won’t last. But I know an EA that uses that kind of thing.
I bet that no, I have had experience year ago not with forex but more like with some local coin on local market anyway and it shouldn’t really work there for such matter anyway. IT’s all failed projects from start to finish, nothing can beat manual trades.
I have been using EA`s for about ten years to good success.
They require management, good management.
There is a lot involved and always upgrading to do.
It is not a simple way to make money.
My 2 cents…
That’s how the big banks and hedge funds do it so yes, it has to work somewhere! FX retail traders are fighting against institutional machines that have access to much deeper information and technology. The game is rigged here.
However, automated trading is not entirely inaccessible to us mere mortals. It’s just a little more complicated, as it’s not a matter of putting usual technical analysis approaches in a machine’s responsibility. The models are different and based on statistical techniques involving machine learning, in some cases.
A good place to start is quantstart.com. The proverbial rabbit hole goes deeper than you can ever imagine!
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Normally, a bot or code to work will only work in once current market condition which is why you experience winning for a certain period of time. Markets go though cycles or different market conditions which a piece of software cant normally cope with. I dont see a reason why one couldn’t be written but it would have to be intelligent enough to identify these market conditions and adapt to these (possibly by the use of AI) but i an not aware of anything retails traders like you are me can purchase. In terms of algo trading, its all done at really high speed with trading houses sometime moving their networks closer to the exchanges to take advantage of milliseconds worth of delay ! so i’m using common sense here that something you buy for a bit of cash over the internet wont have long term success.
I need this automated system, who knows a good one ?
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Can you advise me what name website EA and what to start
I’m using Proquant atm (combined with trading212).
It is some kind of social network where you can also follow other peoples strats.
You indeed need to watch the strategies, as most of them cannot adapt to market changes.
But yoi can go back as far as 16 years backtest (system does it all for you and shows you average profit in % a month, max drawdown and many more parameters).
So far it’s giving me roughly 20% return a month, but you need to keep an eye on your running strats because your winners eventualy turn into losers, so you’ll need to be in time to replace them
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What website you using
Having read your post last week I am half way through the book you have referred. This has taken away about 90% of the questions I had about “how to” document a strategy and plan that I can live with as a guide to my Forex trading third time around. I opened the new Forex account (live and dummy) 24Sep19 and have so far not been tempted to put on any real trades. Last time around in 2010, I couldn’t wait to lose money. I traded before I had set up my strategy and plan. This time around I am a lot more patient to want to get it right by making sure my plan accords with this book. I am peaceful following this path. Last time around I was agitated and impatient. So psychology, to date, is positive.
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I think they all will need to be tweaked over time.
Hi, surely…
From what this cat has read, EAs work for the specific setups, for the specific market conditions, for the specific commodities it was designed and kitty tested for. Once you change something (market conditions change, you use it on a different commodity), it’s gonna crash and burn. Once market conditions change, the system HAS to kitty adjust to the new conditions.
Say… you take an EA designed and tested on a bullish broad market and you run it on a range bound or bearish broad market, you are gonna get chopped! Hihi… :cat