Forex Robots

Forex Robots do they work?
If they work why aren't every person using it instead of working with a strategy?
Are them as reliable as sites say?
Have any one tried one or still uses one?
What are your opinions?

If they worked, so many people would not be on a board like this discussing trading systems.

Seriously though, some work during trending of the market but fail when the market starts ranging and vis-à-vis.

Over the past several years huge efforts have gone into designing and building bots for the Fx trade.

Most have been dismal failures and marketed to rip people off.

I can not post links because I have insufficient posts on this forum (silly isn't it!) and have not earned permission, but there is a site which independently tests Robots written by a guy called Logan Daily. You will have to google him.

He has come up with 4 supposedly profitable bots.

One of these T*rbo systems which has been sweeping the market and has its own trading room/webinar now, actually is highly profitable.

Logan Daily's new-forex-software is not the only one who says so.

Mark Larsen forex-system-reviews (google it) also gives many reviews of the bots on the market.

Now whether these two are apologists for the popular bots is debatable - one says he is independent and the other says he earns money as an affiliate.

Fair enough.

But what I have found is that the profitable one has caused a big stir with one of the FX brokers. They have suspended trading using this bot. I am probably not allowed to mention the name of the broker, so I won't, but you could google a correct spelling of Ggoooo Mmarrrrkettts and look around at what google tells you.

Here is an excerpt from an email a friend of mine received from them:

"Dear Client,

As you may be aware, due to severe illiquidity in the FX markets there have recently been some spread increases. Our risk management team is currently reviewing the market conditions and is looking to reduce spreads on some of the affected pairs shortly.

Please note that due to a review of our hedging policies the use of some Expert Advisor systems have had to temporarily be restricted. The use of ***Tu*rb* will temporarily be made unavailable whilst the review is completed. Once any new systems are in place which allows the use of this particular EA we will inform the necessary clients. Please do not attempt to open any new ***T*rb* trades but existing open trades will of course be allowed to continue until they have been closed.

We would like to apologise for any inconvenience caused and will attempt to resume normal service as soon as possible."

That is really worrying for a couple of reasons: "Due to severe illiquidity in the FX markets" and "a review of our hedging policies".

Either they hedge or they carry the risk. It can be a mixture of course.

Here is a company that has been carrying the risk and claiming that they only make money from the spread.

This has been proved to be lies now.

And without proof, I can only suspect that most brokers possibly do not hedge, but act as your counter-party to any trades, knowing that bots are doomed to fail ... until now ... and that most traders lose.

When you lose money trading, the company keeps your money - it seems now that in fact it is NOT hedged into the Interbank Wholesale market at all, but pocketed and the risk carried by the broker. This has, until now been very lucrative for them.

The other thing is their claim that the FX markets are "illiquid" ... really? For years the favourite ploy of advertising brokers has been to entice traders to the FX markets through the attraction of HIGH liquidity.

Who has not heard that "the international currency markets trade over $1.3 trillion dollars per day!

That may or may not be true, and is unprovable in any event. Who counted it all?

But the low liquidity may well be true for brokers who trade the RETAIL markets, where there may NOT be the liquidity, UNLESS POSITIONS ARE HEDGED INTO THE WHOLESALE MARKET.

Clearly this company has been caught out, and now bans bots until they can make the decision to fully hedge.

My take on it is that they will probably allow bot trading, but slap a hefty "fee" on it so as to make something for themselves other than the tiny spreads they currently claim makes up their income.

Strange how the story changes once traders begin to make money.

It seems that it is ok if you are losing, but the minute you begin to win, the rules change, or the account gets suspended!

This is the sort of thing that gives brokers a bad name.

You seem to know a lot about good roborts that work, pls which of them do you use, I have been searching for a decent robort that makes profits.

I have actually posted not one, but TWO profitable EAs on these boards. Completely free, no gimmicks, all source code is included:

http://www.forexfactory.com/showthread.php?t=145135
http://www.forexfactory.com/showthread.php?t=143250

Thank you but Im not a coder and I really dont do much testing because I dont know what to test for really, from what I read from the treads of the post where you posted th EAs, seem like its still under construction, I need what I can straight to my live account now. thanks again

You really should read the entire posts. The code is finalized and there are tests, done by someone else, to prove the profitability. So you CAN plug them in and use them today. The code is there but so is the automatic side of it.

Pip-Stud, what is your impression of an EA?

I will tell you now that you can't simply attach an EA to the chart and expect it to make you a millionaire. Or a dollaraire...for that matter. That isn't to say EAs don't work. I have yet to find an EA which can fully replace a trader. All the EAs I use can only assist a trader, none of them are that good yet.

I disagree. There are various MA crossover systems that are profitable. Sure, they won't make a killing, but the are "set-and-forget" systems. Once I'm finished funding my accounts, I'll be running my EAs on a remote server and only checking them monthly

Start waving goodbye to your money now.

So pessimistic!

I have come to believe that the "Holy Grail" can exist with EAs. It's just that most (all) of those systems are very boring and use daily charts. Virtually everyone wants a "set-and-forget" system that will feed their need for excitement with every single tick. THAT doesn't exist, but other profitable EAs can be found/created.

nvwine has been in this business awhile you might want to consider His opinion.


Best regards


Dale

Opinion, cynicism . . . same thing right?

Experience doesn't breed genius, you know

I'm sure he's contributed a lot, no doubt, but that still doesn't mean that the obvious pessimism can't be pointed out

Yes I am pessimistic that any EA will be profitable through different market conditions long term. I hope I am wrong.

I should point out I use EAs. I was replying to someone who said they wanted to buy an EA, use it on a live account and make money. It is very hard to make money with one EA. It is also very very hard to make money over 18 months with any EA.

In my opinion if you want to improve your chances of making money over 18 months you need a basket of EAs. You need to be able to trade the methods used by the EAs manually and make money. It is to your advantage to understand the coding well enough to understand how the EA works.

I perfectly agree that there are "set-and-forget" systems. But consider this, can your EA ride out the price shocks that happened in November 2007, Summer 2008, and October 2008? There are these black swans out there which will kill almost any mechanical system. Or at least put in very steep drawdowns and possibly losses which will be hard to recover from.

I agree with the parts in bold, but not the underlined part.

You don't necessarily need to be able to trade the methods an EA uses (I can't manually calculate a neural network every 3 seconds). But you definitely need to understand how the underlying system works and where it works best.

I stand corrected. I was too general in my statement. There are some types of EAs that trade in a way that can not be done manually.

Its not rocket science people.

Im not that lazy it s just that stated trading my live acoount recently and almost in red zone now, thats why Im looking for any EA or trading system that can help me rake-in a few pips consistently

haha..

Nice Ea results though.
Let's see how long it can last...

Benchmarking with my system..