Forex trading systems

[mikeydabbles]

The forex area here in the forum is a bit light, so I felt this thread might be a good addition for an intelligent discussion about forex systems and experience with them.

The most common form of system is represented by the EA, or expert advisor, which attaches to your free version of the Meta Trader 4 trading platform and allows you to enable live, automatic trading based on programmed indicators.

There are many systems out there, some good some bad, some in development.

This thread is geared towards those who are interested in system trading or who can share their experiences using automated Forex systems with their live accounts.

Hopefully the ensuing discussion will prove to be beneficial for forex traders, from the newbie to the professional...

Regards,
MIKE

[Thierry Martin]

to OnlineTradersForum.com mikeydabbles!

[mikeydabbles]

Originally Posted by Thierry Martin

to OnlineTradersForum.com mikeydabbles!

Thank you Thierry Martin, I look forward to being an active participant on the boards here, and making good use of my time by both learning myself, and contributing to the learning of other readers,

MIKE

[derrekmay]

Hello,

I personally don't have anny experience with an EA.
I will someday develop an EA for myselfs, but I don't have enough experiences to make a profitable one.
That's the reason I have this money mannager, he works with a companny that has developped a good EA witchs generate good profits.
To bad it isn't mine Annyway lots of people try to sell they're EA's on forums and ect.
But you have to watch out for those.
Why would you sell our EA if it is profitable...
The highest chance of finding one that really works is by using those free EA's and addapt them to your own skills.

[mikeydabbles]

I agree you have to be careful of pump and dump scams, in my experience the best EAs, and the only ones I would use, are those that I can clearly understand and grasp the logic of.

I've only found one commercial EA thus far that I like using, and I like it because it's nothing more than a simple trend breakout system. These are the kinds of things I look for in any sort of system.. one variable or two maybe, the more you add the more can go wrong.

I'm working on developing an EA for my personal use based around the Parabolic SAR indicator, I'm nearing the final stages of coding and testing, and I'm going to be live testing it on a demo account for at least 6 weeks before I decide if it is appropriate to use for a real fx account.

And as for commercial EAs, I think as long as you do your homework, find a good system, and use the system correctly, you can do well with them. I say, if I can have a system that will generate 50-100% returns a year on autopilot, sign me up.

As far as keeping the good ones secret, I have heard stories from colleagues of mine who have technical wizard friends with systems generating upwards of 500% per year... those are the kinds of systems you keep a tight lid on...

[Minik]

I stock to the opinion that a person who solely relies on EA to trade and not having a unique set of trading philosophy is no trader... More like an investor, a HYIP investor ..

[Ztrader]

Originally Posted by Minik

I stock to the opinion that a person who solely relies on EA to trade and not having a unique set of trading philosophy is no trader... More like an investor, a HYIP investor ..

Philosophy is irrelevant to automated trading, as is individual judgement of others (who is a 'real trader' and who isn't). Some of the very best traders in history have used purely mechanical systems to make their money.. using a computer to execute a mechanical system is little different than using a power saw to cut wood rather than a hand saw. Would you tell a carpenter that he's not a 'real carpenter' just because he uses power tools?

Automation is the tool of the future for trading. It allows a normally emotional, and often inconsistent human to trade with rock solid consistency, and that is crucial to maintaining long-term profitability.

[aiki14]

Originally Posted by Ztrader

Automation is the tool of the future for trading. It allows a normally emotional, and often inconsistent human to trade with rock solid consistency, and that is crucial to maintaining long-term profitability.

Really? How'd the Quants do in 2008? Any of them beat Ackman? Nope, a system has to be designed by a human, and then has to be adapted to new paradigms by humans. This leads to the old saying " a system works until it doesn't, then you sell it". The average guy will never have an automated system that works, it would logically end in a complete stop to trading. It's why the prop traders guard their programs like their kid sisters cherry.

[Ztrader]

Well, I don't know about Quants(?) or Ackman(?), but the plain fact is that a properly designed system can make money whenever prices change. Vertical movement in either direction is all that is necessary. It's true that most so-called systems are either non-functional or highly fragile, but that doesn't mean that all of them are. Computers also allow systems to be highly adaptable and self-optimizing. Old school methods may never disappear but new technology always brings new tools, and new tools properly applied pave the way to the future.