Aug 11 2009
How effective is automated trading?
Do you remember the TV series Lost in Space and in particular do you remember the name of the robot?
If you answered “Robby” you are totally incorrect. I will tell you why a little later.
During the 1950s many scientists and engineers were working on the development of robotics and there were a good many science programs and documentaries that lead us to believe that we would by the start of the 21st Century have most of our menial work carried out by robots.
In November, 1971, a company called Intel publicly introduced the world's first single chip microprocessor, the Intel 4004 (U.S. Patent #3,821,715), invented by Intel engineers Federico Faggin, Ted Hoff, and Stan Mazor.
This invention would be crucial to the development of robotics, and indeed today there are “robot controls” in more areas of our life than we may imagine. A good deal of our menial factory work is indeed carried out by robots – and they do an exceedingly good job.
Yet despite the gargantuan progress in the development of robotics, I still do not have a robot that can stand behind me as I consider placing a trade who will shrill out “WARNING, WARNING, WARNING” whilst waving it’s arms in the air. Nor is any of the housework undertaken by robot in my house - and there is a reason for this.
Even the most mundane task around the house requires an extraordinary amount of decision making. Just because we do not consider plugging in a vacuum cleaner to be difficult, it belies the amount of brain function required to achieve that “simple” exercise.
I have, over the years, experimented with many automated
forex trading systems and my personal experience has been very disappointing.
Since no one has yet managed to develop a robot that can carry out some very routine household tasks – should I be surprised to find that there doesn’t appear to be a robot that can make the very exacting and varied judgement calls required when
forex trading?
There are of course automated trading aids that can enter a trade when a set of pre-defined criteria is met, but that is a long haul from fully automated trading.
Traders often ask me about "set it and forget it" fully automated
forex systems as if such systems were a reality. Be assured that they do not yet exist. If they did, I for one would be using one to make money while I went out and played golf instead of sitting in front of my PC for hours each day.
If such systems actually existed there would be no "Trading Houses" employing analysts and traders, just rooms full of PCs automated to make money. How many banking institutions would have closed their investment departments and dismissed their staff in favour of such automation?
No, I am afraid that like the Robison family, automated trading is –at least for the foreseeable future - Lost in Space, and so for those of you who want to make money from trading on the foreign exchange I guess that like yours truly, you will need to keep on studying those charts.
Oh, and for those of you that are still wondering about the name of the robot........
The original television series NEVER gave the robot a name, so it is simply referred to as "Robot."
Dick Tufeld provided the voice and actor Bob May actually "worked" the Robot from inside.
Many people mistakenly call the robot "Robby" -- which is actually the name of the robot from the 1956 movie "Forbidden Planet."
Both robots, strangely enough, were designed by the same man -- Robert Kinoshita.
Jul 28 2009
Let me start with the fact that finding a forex currency trading system may seem like a daunting task to anyone who is just starting off trading currencies. Actually, everywhere you look you see an everlasting variety of different forex trading systems. But remember: the key is not to give into the feeling of despair one might experience when trying to determine which forex trading system is best. To tell the truth, that's because there is no one best forex trading method. As you may observe, forex trading strategies need to be adapted to the individual trader. If to make a closer investigation of this issue, some of us like to trade on fundamental analysis - in the case of forex, this would mean those people who study and understand such things as interest rates, keeping a pulse on the world's geopolitical climate, bank policies, statements made by politicians, and more.
On the other hand, others like to base their forex currency trading system on technical study and charting in the hopes of predicting future moves based on what currencies have already done in the past. And, as far as the issue is concerned, yet others like to employ a forex trading system that is a combination of both fundamental and technical analysis. It is very important to take into account that some currency pros recommend that you keep your forex trading strategies plain, while others recommend multiple charts and a plethora of forecasting tools. But just remember: actually, nobody has the "right" answer. In fact, you must find the system out there are works for your personality and then cultivate your own trading style.
Actually, whatever you agree on for your forex currency trading system, however, you almost certainly can't go wrong by subscribing to some of the forex newsletters written by professional currency traders. The fact is these newsletters will offer both fundmantal and technical analysis of the markets. It is obvious that some lean more to fundamental trade indicators and others to technical, so pick whichever style you like best. In addition, another thing to call up is that the currencies market is constantly changing, so your forex currency trading system must be able to change, as well. So far as known, rates of exchange are affected by many things the successful trader must be able to keep an eye on these things, somehow.
As far as is known , statistics show that 90-95% of currency speculators lose their initial investment in the three to six months following that first trade. This shouldn't dissuade you any way from getting involved in the exciting game of forex trading, but it should at least concern you enough to want to equip yourself with the best knowledge possible before taking the plunge. Also, what here is to be mentioned, to developing your own forex currency trading system, take advantage of some of the generous free offers by various online forex brokerages that allow you to trade in real time with paper money so you can get the hang of how things work. And finally, take a course or two offered by some of the professional currency traders and subscribe to some of their newsletters. Be sure, in time, you will probably develop your own forex trading strategies and hopefully attain the success that you seek.
Read more tips about
forex currency trading,
forex trading systems and
auto trading.
Jul 27 2009
Let me start with the fact that it’s that element of risk that drives so many new investors to seek out the 'ultimate trading system'. Actually, you get into Forex and you realize it is not as easy as it looked from the outside. As you may see, the speed and complexity of market movements is mind-boggling. In order to make a closer investigation, perhaps you have already opened a demo account, and practiced making trades. We have every reason to believe that you even went ahead and opened a live account, lost an embarrassing chunk of money, and are back at square one -- looking for that 'magic bullet'.
The question is: Do you really need a better trading plan of action, or do you just need a better grip on Forex? The answer is: Both. It is obvious, the better you understand Forex, the more likely you are to choose a trading system that fits your wants. And vice versa: the less you understand Forex, the more likely you are to choose the wrong trading system!
As you know, there are roughly two kinds of trading systems: 'signal service' systems and 'complete', strategic systems - and I almost hesitate to refer to 'signal services' as 'trading systems' at all. Moreover, signal services are convenient tools for experienced spot traders. It is obvious that the primary role of a signal service is to send you 'signals' or 'alerts' about market movements as they enlarge, according to popular Forex indicators. As a matter of fact, typically, these services send 'buy/sell' alerts (and/or general 'movement' alerts) to their subscribers via the subscriber's preferred method of communication: e-mail SMS or text-message alert, etc.
It is very important to take into account what many of these services do not do, however, is provide with you with a trading strategy or 'auto-trading' option. So far as we know, in order to get that kind of service, you must go with a broker who provides a 'complete' trading system, and not merely a glorified signal service. No doubt you have to pay serious attention to the fact that there are a couple of things to look for when evaluating potential brokers. In fact, the first thing to look for is full disclosure of trading strategies. It is obvious that if a given brokerage company really is in business to help you succeed, and then you should elementary be able to find some wording on their web site about proprietary trading strategies. As far as this issue is concerned, many brokers offer 'auto trading' services, where trades are made on your behalf, based on these strategies. Furthermore, this type of service can be invaluable. However, according to my experience, it may also hinder you if the broker is unwilling to disclose the nature of the strategies involved.
The other thing to look for is 'specialization', but, in fact, this can be tricky. The thing is that some brokerages will claim to be Forex specialists, when they are really just 'fly-by-night' scams based on risky trading strategies. According to my opinion, it is often far better to go with a 'name brand' brokerage that treats Forex as a specialized component within a broader package. Unfortunately, what your account may lack in 'cutting-edge' versions will be more than made up for by common sense policies and safety measures. It’s not a secret that a skilled broker will be as risk-averse with your money as you are.
Finally, one of the central secrets for you to know is that you should take the time to develop your own trading strategies. Just take the time to sit down and flesh out your entry and exit tactics.
Read also about
auto trading,
forex trading systems and
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Jul 23 2009
Let me start with the fact that it was recently estimated that a full quarter of all traders are currently using some sort of forex auto trading in their campaigns. That is, if we are making a closer investigation of this problem, using a program specifically suited to aid traders in making their campaigns exponentially more notable because of a few paramount factors that you need to know about. As you may know, forex auto trading offers the most accurate way to trade ahead of the curve and consequently maximize your profits: trend generation. It's common knowledge that trend generators make use of complex and tested mathematical algorithms to effectively predict where exactly the market will go next. This aspect is of fundamental importance as this is where most successful traders make their money, that is getting in on the ground floor of a successful trade.
We can safely assume that these algorithms are tested. Actually, this is no small thing. To the best of our knowledge, these programs are tested for months or years in advance to ensure that they are as accurate and precise as and congruent with the actual market's use before being made available to traders. By the way, most publishers even offer constant free updates for life to keep your tips as fresh and up to date as the market itself. It is very important to take into account that if you want the most accurate information affecting your trading day in and day out, there is honestly no alternate for forex auto trading software. So, as you see, we've talked about the upside of forex trading, but let's face it, it's not all profits, pools, and sports cars. As far as my personal experience can be taken into account, no matter how savvy a trader you are, eventually that profitable trend which you got in on through your trend generator will begin to go south and turn on you as the market regenerates . The other thing that needs to be added is that unless you have virtually no social life or sleep schedule, odds are you won't be around the minute that this occurs to be in a position to act on it and trade away.
As good luck would have it, forex auto commerce programs are all inclusive in terms of what they can do. It is obvious that when you take a closer look at this issue you would see that they keep a constant and vigilante watch over the market, around the clock. It has long been known that when the market changes out of your favor, they recognize this, and at the earliest indication, they "auto" trade away the bad turned investment on your behalf, thus greatly minimizing your losses. In fact, this is another area in which successful traders flourish. What counts here is that these programs work as an added safety net to give you complete peace of mind around the clock.
Read about
forex currency trading,
auto trading and
forex trading systems.
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