Automated Systems -any hope? :(((

[desperate]

You know, I think I've got the answer for my question. I had revelation at work today. The answer for my question is simple - no. No such a system exists. There are many good trading strategies around (and quite profitable at the same time) but they have t be traded manualy. Your experience and intuition does count. This two things cannot be transfered to any mechanical system. And therefore no profitable (and by profitable I mean a steady equity growth, not random jumping) automated system exist. At least none of them is known to the public. If a system like that existed this forum (as well as many others) wouldn't exist, would it? If a system like this existed there wouldn't be so many trading books and gurus around. If a system like this existed, someone would have posted it here instead of providing links to signal selling companies. Unfortunately

[Aleph]

If there would be a system that makes consistently some 3% per month, then why shouldn't there be a system that makes 3% per day..? It's obviously the case that there will never be any such system. But if for some reason someone somewhen creates or created your desired system, then it would work consistently only as long as no one knows about it. I mean as soon as such a system would become publicly available it would stop to work because everyone would try to use it and due to it's feedback on the price the market would most probably stall...

...stupid thoughts? maybe, but as reasonable as the system you are looking for.

Aleph

PS: From a certain point of view nothing in this world will ever be predictable. Maybe looking from outside the universe everything allready happend, but if so, then it happend it every possible layout... just my 2c

[WmWaster]

desperate, although I still trade manually, I'm sure autmoated trading system should be profitable as there're a lot of traders, fund managers etc. who are using them to trade. One good example is pros use trading system to scalp and arbitrage. It can't be done so fine without the help of an automated system, although there's always a risk manager who will step in if the system goes wrong.

I'm still learning how to create an automated trading system - I have no idea how to code my trading methods. I suxks at coding. That's the real problem to me.

As to what you should base on when building an automated trading system, I think there're existing yet profitable trading strategies available which you could make use of: moving averages, MACD, CCI, to name but a few. You can build some simple trading systems on them. You should gain overall.


However I do think automated trading system cannot make you earn big. It's especially true if your trading strategy involve subjectivity, pattern recognition, wave counting, and so on. That's why we involve in manual trading which is much more rewarding than automated trading.

[WmWaster]

desperate, what causes you say you have no time to trade?
Even someone who has a full-time job can trade. The point is you need to pick some trading strategies which are suitable for full-time worker like you(?). Sure you can't involve in intraday trading if you have a full-time job, but you can always do swing or position or long-term trading.

Someone who has a full-time job is still able to gain millions.

[desperate]

Aleph - what you say is quite a common blief. And I've never known whether it's true or not actualy. From one hand - if a lot of people are buying (more buyers than seller) than price does go up. From the other - yes, still there has to be someone who sells...

WmWaster - you say there's a lot of traders etc. using automated systems. Well, I don't know any of them. I know some who are claimed to use them but that's all.
MACD? CCI? Man, these are the first I've tried. And the worse ones. Few spectacular gains and planty losses. Filter them? Yeah, that will kill many losers but some of winners as well unfortunately. Believe me - if I say I've tested them I mean it. And if I find or invent a new one which has any chanses of being profitable - I will test this one as well. But I know the result now without testing it
Long term trading? Yeah, I think it's the only thing left for me but I'm really bad in it. I will catch every movement in it's local peak - I will sell the high or buy at low and the price will go in my direction for few days but I will still eventualy loose, because I won't exit in time :/

[Gillouse]

Hi desperate,

you should have a look at the future truth magazine, they are testing and ranking trading systems and as far as I know (I'm in france) it's serious.

Hope this help.

Gilles

[Aleph]

...well finally I have to admit that however probably such a system does exist perhaps the only method that simply has to work for the long term would be the Grid-Trading system... I have no idea what profits one can expect and sure it depends on fine tuning it to the traded currency pair, but it could be easily automated and it definitely should generate some profits and in the long term (years) it should generate much better profits. I'm pretty sure with the right strategy this could work out nice. It's definitely necessary to operate with a well funded account to succeed with Grid-Trading strategy.

regards, Aleph

[desperate]

Ok, tht's actualy quite interesting. Does any one know about any magazine which does similar tests for FX? Or maybe should I consider switching on futures?