Does Automated Forex Trading EVER REALLY WORK?

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

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

Yes of course risk management works because what you get is correct expectations about your possible trading losses and their probabilities. Thus you are prepared to them and know how to reduce them.

Market conditions and therefore the underlying fundamentals of currency pairs shifts all the time. A case in point is the Brexit impact on the GBP and EUR. It would be pretty difficult to have predicted this in an automated system. Therefore automated trading systems’ underlying assumptions have to be checked and adjusted from time to time, where appropriate.

I use an EA that has worked for a year but withdrawn my seed money so effectively risk free

I trade since 2012 and I already coded hundreds of EAs, some for me, others for clients.

EAs are good but people need to know how to use them.

It’s very difficult to have an EA that works well on all types of market.
EAs are usually good just on trending markets, or just on sideways markets, depending on the strategy used, but they start to fail when market conditions change.
The secret is to identify what are the current market conditions and choose an EA to trade according to that.
And when market conditions change, stop that EA and eventually use another one that works better on that new conditions.

So, an EA is not something that you just set and forget as most people believe.
You need to know the strategy behind the EA.
You need to know when it does perform well.
And you also need to know how to analyse the market so that you can enable/disable the EA properly.
I’d risk to say that you need to know how to trade manually, in order to be successfull trading with an EA long term.
For me, the best EA is still the human brain!

Been using one for a year. On very safe risk settings, keep minimal amount in, withdraw regularly and owner watches it and shuts off in volatile times. Ticks along for me better than a bank.

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This is the key piece people usually forget about. They think they can just set and forget.

I’ve asked myself this question about 1,5 years ago. So - as I don’t believe in backtests - I put around 105 different EAs on demo accounts and made my own statistics.

These are my results:
1.) there are indeed tradingbots that do profitable work.

2.) nevertheless the majority of the 105 are not working, at least not constantly

3.) There are technical solutions in order to stop the trading of specific bots in certain market conditions (e.g. news stops or volatility stops) - so setup and forget is truely a thing.

4.) big advantage is that your emotions are definitely kept out of trading.

5.) big danger is to install too many bots at the same account - so the emotion „greed“ is a thing. Even with automated trading.

Conclusion: you have to make very precise statistics about your EAs, most of all about possible drawdowns and trading length in order not to overtrade your account.

If you really stick to your numbers, it’s absolutely realistic to setup (multiple) accounts that won’t make 100% per month, but something between 10 and 50%. But it’s really hard work that you have to do before on valid statistics.

Successful automated trading is realistic, but it‘s long term and hard work. :+1:t5:

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Sorry to jump in, not sure if this is the right place, but may I ask a question and for your advice please?

In Automated Trading, is it possible to run two different Expert Advisors on two different markets at the same time BUT to permit only one trade to be “open” at any one time? In other words, if EA “X” has opened a trade and now EA “Y” wants to open another trade, it is blocked? Can this be done in MT4?


Hello A_Virgil,
EA trades can be managed by Magic Number. EA recognize a position in the market by this magic number.
Different EA`s can work with the same Magic Number. When open a position in the market , you have to set magic number in OrderSend().

Hedge fund companies hire top talents to develop these automated trading systems. They spend a lot of resources because development is continuous and it really requires top talents. If your automated trading system cannot adopt to ever changing market dynamics then yes it will fail you in the future. Good luck

thanks a lot for your reply