Automated trading really works.

This is a discussion on Automated trading really works. within the Trading Software forums, part of the Commercial category; I"m with @ kovalrock in that they're not much different. Automating your strategy removes the angst of order entry and ...

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Old Jan 4, 2016, 7:55pm   #9
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I"m with @kovalrock in that they're not much different. Automating your strategy removes the angst of order entry and allows your orders to get into the market more quickly. This time savings may allow you to expand your universe of signals and develop new strategies that may not be viable with point and click order entry.
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Old Jan 10, 2016, 7:26am   #10
 
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The key to automated trading is proper money management.
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Old Jan 17, 2016, 2:41am   #11
 
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if you are referring to "automated trading" as using code or a robot to automate some functions, like managing a trade, trailing a stop, closing at a certain time or price, then I think automation is fine and hepful.

if you are referring to "automation" as a fully automated process where the code/algo actually decides when to open/close a position, I would suggest that this is not in fact possible while being consistently profitable. Trading platforms can only work with what they have as input data, and all spot forex platforms I am aware of are only capable of receiving "price@time" quotes and transactions. Thats it. IMO this is *not* enough information in and of itself (no matter how you slice and dice it) to make intelligent buy/sell decisions in any way that is more predictive than random chance (50/50).
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Old Jan 17, 2016, 11:55am   #12
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I like the idea of automation taking the mechanical element out of trading.....like many processes automation can relieve humans of mundane and repetitive actities that just waste their time......and automation can do these faster and more efficiently than humans ever can

But trading is an art form and only a human traders experience and sixth since based on years of trading can provide the final decision to enter a trade

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Old Jan 17, 2016, 1:25pm   #13
 
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I expect that there are profitable EAs out there but Joe Average won't ever get to use one. Big money has employed Phds by the bucket full at great expense and so won't be giving them away.
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Old Jan 25, 2016, 11:21pm   #14
 
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EA Mgt.

Someone here posted "The key to automated trading is proper money management" but I would say that the MAIN KEY is proper EA Management!!!!

As the Market changes you need to be up on tweeking and upgrading your EA. I used to have a Portfolio of 5 EA's all of which had different Trading Styles for different Markets and it worked very well.

There is no such thing as a "Set and Forget" EA. You have to spend as much time with them as if you were manually trading. Unless they have specified Filters they do not know to turn themselves off during Major News Events or Disasters. (I had five running on VPN when Japan was hit by Earthquake and everything Forex went crashing within seconds. THANK GOD, I was able to pull the trigger when such a Tragedy struck.

Cheers,

Pippa
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Old Feb 14, 2016, 10:12pm   #15
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Pippa, there's a yes and no quality to this as the breadth of automated trading strategies is very broad. I have customers who have used the same autospreader logic for years very successfully and other algo logic with very little change for years as well. Many algo configurations are intentionally, and wisely, constructed with a large set of configurable parameters so traders can 'tweak' the logic on the fly. The base logic may never change, just various inputs and calculations. Automated execution can't really be bucketed into one category and the styles and expectations of automated logic can vary tremendously.

Last edited by patrickrooney; Feb 14, 2016 at 10:19pm.
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Old Apr 27, 2016, 11:31am   #16
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Automation may be very profitable if it can have a series of criteria enabled into it. Lot of 'ifs' and 'buts' will need to be incorporated. Otherwise, I feel discretion will need to be used to get the best out of it. But if discretion is used then it's not truly automated is it?
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