Can Automated Forex Trading Systems Really Make Money Consistently?

February 27, 2014 by  
Filed under Automated Forex Trading

Forex profit

Many outlandish claims have been made about automated forex trading systems.  They have been touted as your key to untold riches or an automatic money making machine.  All you need to do is to let it loose on the forex markets, and the profits are yours.

So, are the claims really as good as the reality?  Well, from what I know of the financial markets, and I have been trading the markets for quite sometime, I have to reply with an emphatic “no”.  Automated forex trading systems are no different from a human entering a trade using a certain set of rules.  If your set of rules are flawed, no amount of automation can make it profitable.  But if your set of rules are sound, an automated trading system simply duplicates what you do manually.

In the following paragraphs I would try to give you a better idea of what an automated trading system can and cannot do, so that you can make a better evaluation.

Can an automated forex trading system make money?
Yes, but so can somebody who knows nothing about the forex markets.  Looking at it at its most basic level, trading is simply a decision of whether to buy or to sell.  And you do have a decent chance of being right even if you were to make a random choice.  So, even if an automated trading system was programmed to enter and exit the forex markets at random, it is possible that this system can make money.

Can an automated forex trading system make money consistently?
For the experienced trader, this is the crucial question.  Any trader or automated system, regardless of experience or quality, can make money over a period of time.  This period of time is profitable as the set of trading rules used might be suitable for the trading environment at the time.  However, as soon as the character of the market changes, so will the profitability of the trading system or trader.  More often than not, I suspect that the portfolio will suffer a drastic change in fortunes, from mildly profitable to losing serious money.

Financial markets go through trending and non trending phases.  To judge if an automated forex trading system can profit consistently, you have to trade the system through both phases of the market and the net result must be profitable.

The automated trading system performs great on past data.  It’s going to make me a ton of money, right?
You wish.  While I can’t speak for all trading systems, I can confidently say that the statement is absolutely false for most automated systems.  As a computer programmer, I know that it is not difficult to come up with a set of rules that can fit any set of past data so that the system buys and sells at just the right time.  Look at it as having the benefit of hindsight.

But, in all probability, the set of rules inferred would tend to be too well fitted to the data, and does not have any real predictive power when applied to trading in real time.

If an automated forex trading system is profitable, why do their programmers want to sell it and not trade it themselves?
Call me a cynic but I have the following answers for you:
– As traders themselves, they know that their system can trade very profitably during certain phases of the market, but will fail miserably during other phases.  And they know that the system will probably generate a net loss over the long run.
– Their trading system was created to be sold.  Everything about the system has been optimized to make it look good, but it is really quite useless in actual trading.

Conclusion
Don’t buy into the hype surrounding automated forex trading systems.  While they do have their advantages, they are not automatic avenues to wealth.  You can use them to fine tune your system or to automate trades, but ultimately, whether you make money consistently in the forex markets depends on only one thing, namely you..

Automatic Forex Trading Systems – The 3 Deadly Forex Mistakes That Will Destroy Your Trading Account

July 11, 2013 by  
Filed under Forex Trading System

Automatic Forex trading systems are often trumpeted as the way for beginner and veteran traders alike to eliminate emotional decision making and mental issues from their trading. The reality is that there are still many emotional and psychological traps that can hinder any trader’s Forex automatic trading operation, even with the best Forex trading systems.

There are 3 deadly Forex mistakes that can prevent the successful operation of automatic Forex trading systems and Forex robot traders, and by the end of this article you will be able to identify these deadly mistakes and eliminate them from your Forex automatic trading.

So where do most automatic Forex trading systems fail? Believe it or not, most Forex robot traders actually lose money because of the person running the Forex robot trader, and not the person who developed it. This failure stems from mistakes made by the operator of the automatic Forex trading system while affected by the following psychological factors:

Deadly Mistake #1: Greed

The first deadly mistake that prevents most Forex system traders from realizing the full potential of their automatic Forex trading system is greed. Many Forex robot traders allow the trader to adjust the money management rules of the system in relation to the account balance and the level of leverage available.

Greed causes many traders to make the mistake of trading lot sizes that are too big for their level of leverage, which often results in a rapid wipe out of the trading account. When determining trading lot sizes for your Forex robot trader, be sure to err on the side of safety so as not to fall into this trap of greed.

Deadly Mistake #2: Impatience

The second deadly mistake that prevents most Forex system traders from realizing the full potential of their automatic Forex trading system is impatience. Once they have bought their Forex robot trader, they just can’t wait to load it up with real funds and begin their Forex automatic trading right away.

This goes against the cardinal trading rule of always prioritizing capital protection. Every automatic Forex trading system must be tested on a demo account first to verify the results advertised by the developer, as well as to familiarize the user with the correct application of the Forex robot trader.

Deadly mistake #3: Fear

The third deadly mistake that prevents most Forex system traders from realizing the full potential of their automatic Forex trading system is fear. This is closely tied with mistake #2 and the lack of live demo testing before commencing Forex automatic trading. Without the experience of trading the Forex robot trader on the demo account, the trader will not know what to expect from the automatic Forex trading system and will be prone to prematurely shutting down the Forex robot trader and returning it for a refund.

To avoid lost profits on a perfectly functional Forex robot trader, every trader must trade it on a demo account for at least 30 days to determine the basic parameters of the system (e.g. average profit/loss, standard deviation & upper/lower range limits).

Are you making any one of the 3 deadly mistakes: greed, impatience and fear? If you are, stop trading immediately and take the necessary steps to correct these mistakes before you go any further. Otherwise, you are putting your trading account balance in grave danger of a blow out.

 

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What are automated forex trading software systems?

July 3, 2013 by  
Filed under Automated Forex Trading

Automated Forex Trading

Everyone who trades forex knows what are forex trading signals. At the same time everyone knows how to get forex signals. Generally most of them knows only two ways. They either get the forex trading signal by researching on the forex previous trend charts and various other subtle indicators or they simply subscribe for the forex trading signals with some forex signal providers by pouring more money every month. But very few know the third way to get the forex trading signals.

Where are we now?

Technology is developing at a rapid pace!

The third way to get the forex trading signals is by using the “advanced forex trading signal systems” also termed as “advanced automated forex trading signal generators”.

So what are these “advanced automated forex trading systems”?

Advanced forex trading signals generators are the advanced automated forex trading systems which generate the forex signals for forex traders. These are the stand alone trading systems which work with all types of currencies available. These advanced automated forex software systems generate forex signals if you just feed them with the data that is available with you. The data feed that it needs will be available free in the internet. Just get that data and feed it and simply say calculate. It gives you the complete data when to buy and when to sell in the other words it gives you the forex trading signals.

Advantages by having an “Advanced Automated Forex Trading Signal Generators” for your self are:

1. They are for one time purchase doesn’t need to pay every month like subscriptions.

2. They are stand alone and in future and if any new version comes in future, you are entitled to clain the new version at no extra cost.

3. They will work with any forex trading platform which your forex broker provides.

4. They will work on any currency pairs that you trade with.

5. You could be more independent with out depending on any of the forex signal trading providers.

6. You could be more efficient than earlier in getting more profits.

7. No need to worry all the time for trading signals. Whenever you want you can generate the trading signals.

8. No need to spend money on forex brokers or on any forex experts for monthly subscriptions to get forex trading signals.

9. Saves a lot of time and can allocate for other activities.

10. They generate the best forex trading signals than that are provided by your forex signal provider.

11. They provides you the demo so that you can handle it more efficiently.

Lets don’t waste time and have the best “Advanced Automated Forex Trading system software” to grab more profits from forex market.

Clickhere to check the best automated forex trading system software ever!

Click here to get more information on “Automated Forex Trading System Software“.

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Forex Trading Systems Online – The Diamond In The Ruff

May 19, 2013 by  
Filed under Forex Trading System

The bottom line with any forex trading system is, does it work and will it give you monetary success? Finding the best forex trading system is usually the best way for a trader to learn how to use the Forex and achieve monetary success. If you only rely on experience and instinct, you may not likely succeed in forex trading. Therefore with an education in forex trading, you will be better equipped to handle the demands and the stress that comes along with the trade. While many of the systems on the market that claim to teach an effective forex trading system are very complicated, the best forex system should be commendably simple. It should be simple enough to both understand and use yet effective enough to produce results that would keep even the more experienced forex trader motivated. Hence, it should not be viewed as a system for beginners only.

The developers of the 5EMA Forex System explain that there are many advantages to trading in the forex market. Although there are many things to learn at first, with perseverance, forex trading can be rewarding to many. The forex trading market is the most volatile in the world and therefore can be a big risk. Some of the features of the 5EMA’s Forex System that make it enticing are usability, flexibility and versatility. We will discuss each of the features briefly to show you why this forex trading system is the ultimate forex trading system.

Why can you say that this accurate forex trading system has usability? As stated earlier, anyone can learn to gain maximum benefits or profits from forex trading, as long you are in the right frame-of-mind, and you learn to trust the best forex system trading tactics and techniques. This forex day trading system is easy to implement, as the complete user guide is worded with no technical jargon, and you can readily understand what is being relayed to you. The included software with templates is also user-friendly, and you will be able to easily manage with these as your forex trading tools. Also, this day forex signal system trading method is said to be flexible because it was developed and designed for the swing-trader or the day-trader.

It is safe to say that this forex trading system is versatile, because aside from catering to different types of forex traders, the system can also work well for persons who do not have the time to monitor trends all day. The 5EMA’s Forex System can also view long term signals to help the forex trader decide ahead, and to allow him to keep his normal job, while still being a forex trader in his part time.

With this forex trading system you can: know the classification of forex trading markets, find out who the big players are in this game, and how significant their moves can be, plus understand what the main concepts of the forex market are. Also, in sections of the trading system guide, you will learn the important prerequisites that you need to have before jumping in and starting to trade. You will also learn what types of methods and analytical tools that are used by professional forex traders, and how to apply these skills on your own.

Finally, this forex trading system is explained in detail, including, the rules of trading, screenshots and graphs of sample trends and how to interpret them. You will learn the terms commonly used by forex traders, as well as the main rules of forex trading. These are some of the reasons why this is one of the best forex trading systems online. And as the experienced forex traders have stressed, keeping the rules in mind will not only help you with your trading, but will allow you to reap maximum benefits in the long run..

Do Not Worry – Technical Analysis Will Be Done by Automated Forex Trading Signal Systems!

February 6, 2013 by  
Filed under Forex Trading Strategies

Forex (Foreign Exchange, Forex currency exchange) simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve trading of the major currencies.

Forex trading requires a constant monitoring. You can win the forex market if you can monitor the forex market all the time and should be able to analyze it. Trading forex needs a lot of research. Forex trading needs full time effort. Its not so easy to win the forex market just by being a part time trader.

Whether it is full time trader or a part time trader, forex market needs a lot of technical analysis and fundamental analysis. Doing fundamental analysis is really very easier than doing the technical analysis.

A technical analysis is founded on three suppositions:

1. Movement of the market considers everything;

2. Movement of prices is purposeful;

3. History repeats itself.

Basically technical analysis should be viewed as the study of historical prices at the market in order to forecast or even know with greater probability in what direction the future prices will move. Technical analysis needs various technical indicators, different types of charts, graphical methods and analytical methods.

Technical analysis needs a lot of time, concentration and patience. At the end of technical analysis, you get an idea when to buy the forex and when to sell the forex in order make the profits.

As a part time trader, you cannot keep much time for technical analysis. It’s the work of full time traders. But in that case, how could a part time trader win the forex market?

Forex market is growing faster and faster than any other market in the world. Many latest tools have also evolved for the forex market. The solution for the part time traders is to get the forex trading signals.

Trading signals are time-tested indicators of trends in the forex market. Breakouts, support levels and resistance levels, envelope patterns, currency pairs near moving averages, stochastic lines, oscillators, Fibonacci levels – application of these indicators enable forex traders to make a profitable entry into the market. There are about 26 such indicators – reason enough for investors to rely on seasoned forex brokers.

In other words, Forex Trading Signals are selling and buying recommendations given by any third party. Such parties could be brokers, brokerage firms, analysts, traders, forex related software tools, etc. Different parties offer different signals, tips, and trends for trading in forex markets. It is best to collect daily Forex signals from reliable sources. A combination of fundamental and technical analysis forms the foundation of accurate Forex signals.

In the other way, the part time traders should either subscribe for signals with any forex expert organization or they should have some software tool which would do the technical analysis for them and give the signals.

If you subscribe for forex signals with any forex expert organization, the forex signals cost anywhere from $50 to $200 a month. It’s up to the individual trader to decide if the cost is worth it. Don’t think that signals can take the place of trader education: they are advice, and if you don’t have the knowledge to analyze the advice, you should go back to the books before using a signal service.

Now coming to the forex trading software tools, there are some tools which will be available to you provided by your forex broker and also some independent tools (automated forex trading systems) which are independent on any of the brokers. These automated forex trading systems generate the signals for the day that when to buy the forex and when to sell the forex and automatically place orders for your broker without your presence

Coming to the automated forex trading systems that generate the trading signals, they are more handy. Generally the tools that are provided by forex brokers, they will be restricted to only particular currencies, but that would not be the case with the independent automated forex trading systems. These tools will be available in the internet market and that too for a low and affordable price. There is no need for you to pay every month for these tools; it’s just a one time purchase. There tools generally doesn’t cost more than $100.

The main advantage of these automated forex trading systems is that there is no need for you to depend on any other forex signal providing organizations or on the forex brokers who serves you. There are many chances that your forex brokers systems may also get down due to some other reasons. They can even trade for you even while you sleep!

To catch up with fast growing forex market and to make good profits in forex trading, I prefer the automated forex trading systems. These automated forex trading systems will be of more useful to both part time and full time forex traders..

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