Nothing beats the feeling of making money while you sleep. 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. Firstly, there are a number of advanced tools available at a price, Ouch! 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.
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. 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. 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.
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. There is a very wide spread of qualities across all three approaches. Some robots such as the Kangaroo have performed magnificently, while others such as Forex Growth Bot have proved to be a great disappointment in recent times.
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.
It would be great if you could get Kangaroo updated and working again. It was a great disappointment to me owner of two copies when the creators bailed on their clients and left everybody in the lurch. I have nil programming skills and belong to too many groups — but best luck in your endeavours. Maybe you should amalgamate with the robot creators at 52 traders. Hi John, yes I really do miss the Kangaroo! Too many cooks spoil the broth. Take a look at Forex Factory, threads start with a single quality idea and eventually degenerate into a multi-faceted hydra that is unmanageable and generally un-workable.
A small number, focused and dedicated will achieve much more. Yes, that is a good point. Dear Erron Like what you are about to do with a Robot. That way I cannot lose. It would be awesome.
I am not very tech savy and as much as I would like to help out with your build up — the above is what I would like to see in a robot. But I will be interested in your progress, to see how far my wish is being granted. By the way I do not have any accounts with social media and therefore much as I would like to publish you, not able to as I am not very interested in the media. Too much hassle for me. Though Twitter and Facebook keep on reminding me to open one up.
I do not intend to do so. Keep up the good work. Hi Heather, Glad you like it. I think there is immense potential in this area, especially incorporating the principles of price action as I say in the article. I have been hearing that if robot can make money everybody will be rich. That had made me look at robots with extreme caution. But If you with your years of experience believe that robot on autopilot can put money in my bank account, that will be the sweetest thing I can experience.
Hi Erron, Good luck with your robot strategies but for me the Currency Strength Indicator is the best trading indicator to use, you can trade 28 currency pairs and you trade the strongest currency against the weakest on M1 or M5 timeframe when the London and New York sessions open. Here is the link to get the CSI from this site for free. What you might want to look at is having all your systems in one EA using a neural network algorithm that can trade all at the same time taking the best trade available.
Less chance of failure that way! Drawdown cannot really be measured on each system trading this way. Have it so can turn on and off any of the systems within the EA. Will operate more like a hedge fund trader. Hi Dennis, thanks for that feedback. Hi Erron what this be like an Signal service? Signals are certainly one possibility, as also are the ideas of just sharing the robots amongst members to use as they wish which would imply a higher cost for a membership or making the resulting robots available at a steep discount to members.
The purpose of this particular article is to get as much feedback and as many opinions on all of these matters as possible. Hi Erron, It will be great to see you create a robot that take trade on a truly autopilot basis. You have spoken and written about price action a lot, a price action robot will be good that can basically trade any instrument. Will be interesting to see what develops! Thanks for the great work you are doing. Hi Martin, thanks for that feedback. Yes, a lot of those names in your list are familiar to me.
And I certainly agree: I believe the approach that I am currently refining offers the best chance of me personally, being able to do this. But there are no guarantees in life or trading, and I want to make it clear that this will be an adventure for all who join up. Because of the lack of guarantees upfront until such time as I have proven track records etc. This will allow people to be involved without having to risk a lot of money. I do not know anything about programming let alone robots.
This should be interesting. When one joins, what do we do? This may take a little while to set up, but it would offer people the opportunity to follow along and verify the results for themselves. And of course, the opportunity to make some money if the signals proved profitable while the robots are being developed. And of course, as I keep saying, the purpose of this particular article is to get feedback and suggestions. I have two systems and use none of them because they are the same.
One is for stocks and the other is for forex. I will give you more info later if you want to have it. I have commenced development with my nuts and bolts software guy on auto trading robots and a number of strategies that work just fine manually.. It is a daunting task but can be done and is an exercise in clear thinking above all … 28 pairs being tracked and multi time frame being watched.
Absolutely worthwhile as no one wants to watch screens all day and these alerts often take many hours to mature into trade triggers. A discussion group with not many people to input would be great IMO … needs people who have a successful set of manual strategies clearly thought out that work. For those who are short on MT4 skills there is plenty of education out there to enable prototype models.
Thanks Nelson, fun is exactly the approach I will be adopting. I have been there in the past, and it is certainly an involved process.
Best of luck with it. Think this is a great idea. Have ben trying to do something similar using Real-Time Pro but back testing is proving hard as I do not get access to the full version through my provider.More...