fx algotrader

[james1989]

Hi all,

Anyone heard of the fxalgotrader, currently testing it on a demo from provider, I can't seem to find reviews for it anywhere.

I will update on any results. the e-mail says it was made a few years ago, I find it odd there is not one review??

First trade EURUSD (- 1.21)

 

[tripleogstar]

don't ttrust it.

 

[james1989]

I don't seems it doesn't set a stop loss at all!!!

 

[james1989]

you can all follow demo here jaet1989.mt4stats.com the eurchf and eurgbp trades are my scalpers trades. See how it goes.

 

[james1989]

OK guys I can now say that this robot does not work, it has no stop loss and it will most likely eat your account in a few hours. Just look at the account results.

 

[tarrentino]

OK guys I can now say that this robot does not work, it has no stop loss and it will most likely eat your account in a few hours. Just look at the account results.

Interesting comments.... if the tester had bothered to read the technical data sheet he/she would have seen there is a max risk parameter which stops the trades out if they reach a pre-defined % of account equity in loss....

The reason the arb trades don't use stop losses is twofold - 1) the vast majority of retail FX traders lose their money by getting stopped out - so letting the arb positions breath increases the chances of getting a profitable net position dramatically.
2) The system has a max risk parameter - thereby underpinning the trades with a risk management strategy.

Stat Arb is a complex business so if novice traders expect to simply drop an MT4 EA on a chart and expect it to make money without any effort... unfortunately they are somewhat deluded... FX AlgoTrader market semi-automated trading tools for traders who know what they're doing. One thing I can certainly guarantee... if you're looking for an EA which will make you consistent money without effort or knowledge on your part... you're not going to find one! Sorry to be the bearer of bad tidings but that's the reality ... 95% losers... 5% winners... take your pick which camp you want to be in...

Needless to say the original posters will be long gone 6 years later..... let's see

For anyone serious about their trading you can take a look at the stat arb system on the FX AlgoTrader website.

 

[IFeelFree]

Interesting comments.... if the tester had bothered to read the technical data sheet he/she would have seen there is a max risk parameter which stops the trades out if they reach a pre-defined % of account equity in loss....

The reason the arb trades don't use stop losses is twofold - 1) the vast majority of retail FX traders lose their money by getting stopped out - so letting the arb positions breath increases the chances of getting a profitable net position dramatically.
2) The system has a max risk parameter - thereby underpinning the trades with a risk management strategy.

Stat Arb is a complex business so if novice traders expect to simply drop an MT4 EA on a chart and expect it to make money without any effort... unfortunately they are somewhat deluded... FX AlgoTrader market semi-automated trading tools for traders who know what they're doing. One thing I can certainly guarantee... if you're looking for an EA which will make you consistent money without effort or knowledge on your part... you're not going to find one! Sorry to be the bearer of bad tidings but that's the reality ... 95% losers... 5% winners... take your pick which camp you want to be in...

Needless to say the original posters will be long gone 6 years later..... let's see

For anyone serious about their trading you can take a look at the stat arb system on the FX AlgoTrader website.

The FX AlgoTrader software looks like a good tool for investors interested in pairs trading. However, to really know how to use it properly the trader should have some understanding of cointegration and how to identify a cointegrated pair. (Cointegration and correlation are not the same thing.) Every trader has to decide *what* to trade.

In recent years, pairs trading has become increasingly popular, such that it has become harder to make profits with pairs trading of currencies or stocks. I prefer using statistical arbitrage with ETFs that track stock market indices, bonds, commodities, etc. The increased popularity of pairs trading has reduced the profitability of this approach, and so I am more interested in trading cointegrated portfolios consisting of 3 or more ETFs. I've developed my own software for this purpose (I'm a retired software engineer). After paper trading for a about a year while I developed and tuned the software, I started trading a cointegrated ETF triplet, live, 2 months ago. So far, I'm up 10%, which is in-line with what I expected from backtesting -- 50 - 70% average yearly return (AYR). Time will tell whether this continues to be profitable.

It's important to monitor the level of cointegration, because a cointegrated portfolio can "drift" such that the equilibrium level changes over time. (For this reason, I use a Kalman filter to dynamically adapt to a changing equilibrium, and offset and drift terms in the autoregressive model.) A portfolio can drift in and out of cointegration, particularly with individual stocks, because of company-specific factors. That's why I favor stock market indices, government bonds, and commodities. They tend to behave in a more stable manner.