This is basically an old post that I’ve brought to the top of the blog to try and spark a bit of conversation about the topic of forex robots. A few years back when I first wrote this post, automated trading was all the rage, and every man and his dog was selling forex robots that supposedly turned paupers into overnight millionaires.
We all know better by now of course, or at least those of us who researched automated trading certainly do. I worked with automated trading robots over many years. I had some success, but never quite enough to switch from manual trading entirely.
But in the last six months I’ve been drifting back to the topic, and the auto trading scene that I’ve discovered these days has really surprised me.
Firstly, there are a number of advanced tools available (at a price, Ouch!) that speed the process up. This can be really handy when you’re trying to test out all the various parameters for a strategy you’ve been working on. What used to take me months or years, I can now achieve much faster, sometimes in a few days.
Secondly, the market has matured with respect to autotrading. We now have a better idea of what works and what doesn’t.
Finally, from my own point of view, refinement of the principles of Price Action trading has given me a very clear idea of where I want to go in the robots I design. And the fact that I will be basing these automated strategies I’m going to build on the principles of pure Price Action, should give me an edge compared to the strategies I was working with years ago, which were based on arbitrary indicators and so on.
So over the next several months I will be working on building a portfolio of automated trading strategies. Several of the 10 best forex strategies available on this site, are likely candidates. I also have one early running strategy that shows great promise, and if all goes well I will be offering it free to those who join what I am at this stage calling, The Robot Development Group. More details as the weeks go by.
In the meantime, tell me what you think. Would you be interested in a series of posts on this topic? What particular aspects would you like discussed? And what about the Robot Development Group, would you be interested in joining, and if so what would you like the group to involve itself in?
At this stage I have a bunch of ideas, based around the development group members interactive involvement in the robot development. There would also be things like discounts available for robots that are eventually released, and maybe free signals while they are in development. Perhaps access to a private Facebook forum as well. Everything is available for discussion at the moment, as I’m just in the early stages of putting this together. And of course, I’d want to know whether you’re prepared to pay for membership of such a group, and how much you would pay.
So, here is that old post for you to read first up. And then, most importantly, leave your questions and feedback in the comments area at the bottom of the page. If you email me questions regarding this, I will post them and answer them here, so that we all have access to everyone’s input.
Old post begins >>>
Traders are increasingly turning to the three broad areas of hands free forex trading – using forex signals providers, automated trading software and forex managed accounts – for some or even all of their trading.
There are many reasons for this, ranging from not having enough time to concentrate on real time chart-watching trades, not having the inclination to manually trade, not trusting your ability to trade, inability to handle the stress associated with manual trades, lack of confidence due to insufficient knowledge of the markets, diversification etc.
For a trader who fits into any of the above categories, the attraction of having either an automated forex trading program or professional trader do their trading for them is obvious. And many of us who enjoy manual trading also like to have our trading efforts diversifed in this manner.
I have used forex robots extensively in the past, and still do. I also devote a certain percentage of my trading account to managed accounts. My reasons for doing this are that it allows me to cover timeframes and time zones that I would otherwise not be able to trade in, and because it helps to have different approaches mixed in with my own.
Like any area of trading, the automated and semi-automated approaches need caution in their implementation. Whether you’re thinking of using robots, signals or account managers, you will need to exercise due diligence. There is a very wide spread of qualities across all three approaches.
The same can be said with respect to signals service providers and managed account funds. Some are good, some not so good and some downright bad.