You dont have anything to lose What a fallacy !

In the time in which I have been reviewing and using automated trading systems I have come across a countless number of commercial expert advisor sellers and their websites. I would have to say that from all the things they say, one of the worst and most dangerous is their ultimate catch phrase "you dont have anything to lose". Today I decided to write a post about why this phrase is not only totally untrue but also exceedingly dangerous for new traders who dont know anything or too little about the way in which automated trading works.

First things first. The reason why this statement has become so popular amongst expert advisor sellers is because most of them offer money back guarantees. If you dont like their software after a given fixed period of time whatever money you used to buy the EA will be given back to you. So nothing to lose then ? right ? You buy the EA, you use it, if you dont like it, youll get your money back, no harm done, if it is junk you will get your money back.

Well my friends, this is a big mistake ! You have to take into account all the risks you expose yourself to when you buy an automated trading system. Since the objective of most people is to run the expert advisor on their live accounts for long periods of time, the long term profitability of the expert advisor plays a huge role. Take into account that most commercial junk experts out there are engineered to give you short term profits with a huge market exposure that will eventually cash on your account. If you are trading with your money and you lose it, you risk losing much more than the purchase price of the EA. There is no way in the world in which you should be able to know if the EA is long term profitable with just 6 weeks of testing which is what most of these experts offer as a long term guarantee.

So lets see. Joe buys the Superhype EA which has a 6 month guarantee. Joe trades this EA on demo for the 6 weeks and the expert has actually made significant profits, so no worry, Joe is satisfied with his product and does not want a refund. Now, Joe puts his real money on this EA and at month 3 of running it live the EA goes into consistent draw down and in month 5 Joe is down 85%. Joe lost the 100 USD that Superhype costed him plus 1000 USD he has on his live account. Nothing to lose ? Think again, you have everything to lose when you expose yourself to any automated trading system. The only thing that can give you assurance that this will not happen is to have an EA that fulfills well established criteria for long term profitability, something most commercial experts out there do not do (check my reviews to see what I mean !).

If you would like to learn more about how you can know which experts are long term profitable and how you can profit from automated trading using trading systems with realistic profit and draw down targets please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed this article !

Diposting oleh Unknown 19.31 0 komentar

Join me On Twitter !

Today I had a good idea which I think will put me a lot more in touch with all my website visitors, customers and fellow traders. I have decided that from now on I will use my twitter account as a way to further improve my contact with everyone who has any interest on this website or my projects. For those of you who are not familiarized with it, twitter is a sort of "micro public blogging system" in which people exchange small messages. If you add me to your twitter you will receive my messages and if I add you to mine I will see yours. Think of it as being with 5 million people inside a stadium and being able to choose who you want to listen to.

Twitter brings a great opportunity I had not realized before, it will give me the opportunity to hear your opinions (and you to hear mine) on real time while we interact in the world of forex trading. From now on, those of you who want to hear more about me and my projects can add me to your twitter account. My twitter username is danielfppps :-). What will be published on my twitter account ? I think I will try to focus on publishing the following information which may be interesting for fellow traders. I will :

• say when new ebook updates are available (including new videos)
  
• talk live about the trades I am taking on my S&R trading Journal
• say my opinion on any fundamentals that may have just been released
• talk about Watukushay FE trades
  

I think that this will be a great opportunity to interact and get to know the people who visit my website and care about my opinion. Of course, if you would like me to add anything else to my twitter schedule please leave a comment and Ill make sure I take it into account. Meanwhile I hope that if you are interested you start to tune in so that we can learn more about each other and this great journey that is forex manual/automated trading.

If you would like to learn more about the trading systems I have programmed or how you too can be profitable in the long term with reliable trading systems that will not wipe your account please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Diposting oleh Unknown 12.01 0 komentar

The Greatest Advantage of Automated Trading at Least for Me !

It is true that my posts regarding automated trading are generally focused towards the negative aspects of this way of trading and explaining why it is bound to be harder to achieve than simple manual profitable trading. However, there are a few advantages inherent to automated trading that have made it my operational way of choice and the generator of the majority of my current income level. Within the next few paragraphs I will be explaining to you one of the main reasons why I decided to use automated instead of manual trading systems to succeed in forex trading, especially why this is so beneficial for my trading style and personality. I will also tell you why this quality is also a double edged sword and why it does NOT mean that you can just "set and forget" trading systems.

Yes, we have all heard the many "benefits" inherent to automated trading. Most EA sellers just tell you that you can make money while you sleep, trade like a professional without knowing anything and simply enjoy the profits using the forex market like some sort of ATM machine. The truth is VERY far away from this and automated trading is simply not what they tell you it is. In reality automated trading is harder to achieve than manual profitable trading and it is as challenging and demanding from a psychological point of view.

What is the difference then ? What are the TRUE advantages of automated trading ? In reality automated trading has a lot of pitfalls but it also has some great advantages that made me decide to go with it instead of regular full time manual trading when starting to build my forex trading career.

Truth be told, the fact that you are able to watch the markets 24/7 and "not miss any trades" or do a "ton of analysis in a millisecond" were not the things that made me choose this way of trading over manual execution. Even though you may think that this is actually better the fact is that you can use manual trading systems that require only a few minutes every day to achieve the same profitability levels as a regular long term profitable automated trading system. I know traders who trade daily charts and dont spend much time "working" and achieve the same profit targets as me so the fact that you can just have an ever-watchful eye is not a true reason to choose automated over manual trading since being on a constant lookout for trading opportunities is not necessary nor does it warranty more success in trading.

The most important reason that drove me to use automated instead of manual trading systems was simply that - from a psychological point of view - I am better able to control my short term emotions when I do not have to take the actual trades of the systems I am using. I am very good at dealing with draw down periods since I always have a strong analysis and long term perspective but having to take trades from a strategy that has been losing for a given period of time manually is just psychologically hard for me to do. As a trader, I quickly noticed that draw down periods when trading manually made me change my strategy and this led to long term loses and deviations from my projected profit and draw down targets.

Automated trading is a blessing in the sense that it offers me the ability to have a long term plan and stick to its guidelines even if I am not actually personally executing each position the system goes into. Of course this does NOT mean that automated trading is emotionless and those of you who assume this to be the case will be making a BIG mistake. Automated trading attacks your psychology a LOT but from a different perspective. If you dont understand the system you are using you will not be successful because you will not know if you should or shouldnt stop using a given trading system when a draw down period happens, you will constantly wonder if it has stopped working and you will NOT be able to achieve long term profitability.

Even though automated trading is very demanding emotionally, it is demanding in a way which I am more comfortable with. I am very meticulous about the analysis and understanding of my trading systems and I have built what I think is a very good capacity to draw plans around automated trading systems and stick to them. Manual trading is demanding for me in a way that I cannot handle very well, reason why automated trading became the perfect answer for my question about success in forex trading.

So for me not having to personally suffer through each trade of my systems is great since I am better able to handle the great psychological pressure that is exerted by automated trading systems in other ways. However what you have to realize here is that whatever you choose -manual or automated trading -, it will be challenging and believing that automated trading will be a "breeze" simply because you dont have to watch and take every trade is going to be a FATAL mistake. In the end it comes down to having a well laid out plan, a GREAT understanding of your trading strategy and the will to execute your plan exactly as you have laid it out.

If you would like to learn more about the psychology of automated trading, the building of systems and how you can trade with confidence with a likely long term profitable system YOU build based on sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Diposting oleh Unknown 07.31 0 komentar

My Turtle Trading EA First Profitable Results !

After doing the first preliminary backtests and realizing that the system failed to generate profits from 2000 to 2009, I decided to take a good look at my programming and check the logic to see if I had any substantial errors that could be affecting the experts trading. After examining the expert for about an hour I realized that I had a problem with the closing logic which was partially closing positions. The ea was closing with lot sizes equal to the atr calculated values, not the values the orders were orginally opened with, so order management was a little bit of a mess.

After correcting this and other less important issues I finally came up with an expert advisor that truly trades the turtle system 2 accurately. As I expected, results are now profitable for trading since 2000 to 2009. The expert is also profitable amongst several currency pairs, including the four majors.

Backtesting reveals that this system behaves exactly as I had supposed it did. We have periods of moderate but extensive loses and then we have very large, trend catching trades that consitute most of our profits. In fact, most of this profitable trades are many times larger than the average losing trade . Trying with different exit and breakout day parameters reveals that the turtles nailed it just right. This expert will not make anyone rich overnight, with the EUR/USD (first graph), you could expect to triple your capital once every 10 years while it would take you this much time to double your capital on the GBP/USD (second graph). If you want a system that has worked for the past 40 years and that can give you a long term, stable profit, then this is a system for you.
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As you can see on the backtesting images, this expert advisor is a slow, steady, sure money maker, based on the turtle system 2. This expert also backtests with a high consistency because it trades only on very large periods of time (sometimes trades remain opened for several months). You can get it by simply subscribing to my newsletter (corrected ea has already been uploaded to the ftp for subscribers), buying me a cup of coffee or buying my automated trading ebook.

If you would like to learn more about other free and commercial expert advisors please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Diposting oleh Unknown 10.30 0 komentar

Ebook to be realeased soon !

I have been writing an ebook concerning expert advisors. The ebook will be available at a price between 10 and 20 USD, it talks about a few subjects. Ways to distinguish profitable experts from unprofitable ones, also reviews 10 very popular commercial experts advisors based on forward testing results and also talks about main expert characteristics and ideal expert advisors amongst other subjects. Stay tuned for the release !

Diposting oleh Unknown 00.30 0 komentar