As a reply to The Money Cat regarding risk of losing more than intitially invested.
That is dependant on your chosen broker, but most brokers have a automated process that will monitor your account and give you an ‘margin call’ when set margin is close. Furthermore it will close you out of any open position if your set margin is not enough to substain the account if the set limit is exceeded.
When you chose your broker you should take note of theire policy toward margin and margin call. My main broker i.e. guarantees that I will not lose more than I invested in the account. Read it for your self here;
-> fxcm.com/forex-margin-leverage-guide.jsp#q2 - at the very bottom (Is there a debit balance risk? Can I lose more money than I deposit?)
Then again, I dont have my bots trading that account. I signed up for a micro account at HotForex and theire policy is
Margin Call / Stop out level: 40% / 10% . If I read that correct I will have a margin call when my margin is at 40 % and HotForex will automaticly stop out all my orders if my margin reaches 10% (on open orders).
The question is, what happens in a quick spiking marked and I use the leverage fully? A 200 pip spike against my position with a large position (1 whole lot ex) will wreck havoc. Will the broker close my account fast enough, or will I be at the mercy of theire fill price and expose me to a negative account? No such guarantee is mentioned here.
Bottom line, chose your broker carefully after what trading you intend to do, and what screentime you intend to put into it (manual safety). And if your new, start by collecting knowledge about the FX marked BEFORE investing hard cash into it. Maybe start of by reading through babypips very own school?
Hi folks,
I too am a newbie… I’m currently with avafx but am going to change to another provider. I was thinking of going with thinkforex - they were recommended by the people who developed the ForexGrowthBot.
Three quick questions:
Has anyone had any negative experiences with ThinkForex?
Does anyone know if the ‘expert advisors’ (bots) allow you to specify what time a trade will occur?
Based on the positive feedback for the ‘Forex Growth Bot’ I had intended to purchase that system. However, after some looking at ExpertAdvisors, I’m now thinking that maybe MillionDollarPips, WallStreet or IrisFX might be better. Can anyone offer any insights into the pros/cons of the different systems?
Some quick answers;
1 - I have no experience with ThinkForex but I wouldnt rule them out.
2 - No, neither the MDP og FGB have such a feature. WS is next on my list after the two other have paid for them selves, so I have no experience on that one.
3 - FGB is by far the most successfull bot I got of the two. MDP bot makes a helluva lot of trades but the gross effect is not so much in pure profit, but in the bonuses/rebates it generates. FGB had some though trades lately, but more than covered that yesterday when it banked over 400 pips for me (EURUSD rally after the marshall help package to Greece). MDP seems more like a counter trend bot that gets stopped out a lot. I shoots of up to 8 trades, trying to judge the reversal and, if successfull, manages to pull of 1-3 successfull entries for me. The rest being losers but manages to be slightly profitable all in all.
That in hindsight I would maybe chose the wallstreet bot over the million dollar one, the growth bot im rather pleased with and wouldnt change that any time soon. Sadly the wallstreet is a tad more expensive than the MDP, if it cost the same I would have switched it some time ago. Now it just generates small profits and rebates for me.
Theres my 10 euro-cents for you
No there would never be a time where wsfr could trade past $0 For starters, you set the risk per trade. I would start out with nothing more than 5% risk per pair. I would recommend 2% if you are new to forex. Start out slow. wsfr had a bad week, and bad weeks do happen sometimes. If wsfr catches a string of losers it could really hurt our accounts!
As for owing money. Brokers will margin call your account as soon as your funds become lower than their margin threshold.
helltopia, thanks for all the great responses. I didn’t see your post on margin call before I posted
Anyway as far as first robot to get I would suggest WSFR. Overall she has been proven to be very stable and a consistant winner.
I too, love FGB but this bot is not for everyone and has frequent losing trades. I have to put some stats together but overall 50% win rate (that means loses 50% of the time too) Some people can’t handle losers over and over again. On the flip side of the coin when she wins, she wins big! FGB did great last week and it most certainly wipes out any small losers from the previous weeks. In he end FGB is a net winner for sure!
MDP is a decent ea. I would recommend it too.
Whatever you decide for a first ea, you should set yourself up with a rebate program, or get the best possible spreads.
Its been my first full month with wsfr and I would like to share my trades with you:
Open Time Type Size Item Price S / L T / P Close Time Price Commission R/O Swap Trade P/L
2011.06.30 23:00 buy 0.10 eurusd 1.45042 1.43842 1.45302 2011.07.01 05:13 1.44906 0.00 0.03 -1.36
So:
[B]Closed Trade P/L: -8.97[/B]
It lost money last month on my live account. I traded at instaforex, default settings. Afterall I made a little money, because I earned cashback/rebates on my trades and that exceeded wsfrs losses.
I dont have them anymore, but I did a 12 yr backtest on all 4 pairs with my own data, 90% quality. UCHF got a margin call. EU and GU turned a 1k account into millions. UJPY turned a 1k account into like 100k or so.
Looks pretty good, but I wonder what the long term results are. You know, like , many of these bots work for a week or two and tehn just go down instantly. Can’t be sure it isn’t just another scam. Hope it is not!!
In the other hand there are neural networks that i am convinced they be able to crack markets.Artificial intelligence can be the future hehe,but few people know them in depth…
I have been testing alternate pairs in realtime on my live account. Here are the results so far…
Hot Forex Results 7.31.2011 (since July 1) A.win and A.loss stands for average the number right after number of trades is the total net pips for the month.
