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Autobot Trading the Forex Markets!! Tons of money baby!!! Well...

B

Brother Mike

Guest
#1
Now, who would pay 500.00 for a program that auto trades for you, when no auto trading program has ever worked out of the thousands made? (Raises hand)
Ok, it seemed like a good idea at the time, lets take a look.
View attachment 7236

As you can see, setting this up and simulating back trading just 3 days, I would have take in 783.60. The trading system is simple. The bot just makes a trade when one of those red arrows shows up on a Range 8 chart using Gecko Software Bulls and Bears plugin. (900.00)
Now this is a full demo account, using 3 trades at a time, with 5,000 fake starting money on the EUR/USD.

Is Bot trading the wave of the future for traders? Not really, but if this works with real time trading, I will use this very simple system with real money and see what it does.

Most bot trading software look at past years and simulates those trades, adjust itself to make the most money and best trades through the years with back tested data. Many so called bot trading programs do just this, and provide us with tones of great trading results like I have shown you here.

The problem is, that history in the markets don't mean a blessed thing. Playing with Auto Pilot in the past, I have set it to trade 100% accurate over 2 years, but set it on real market prices, and it suddenly trades in real time at about 30% accurate. Bot's can't do what humans do yet, and that is adapt to real market situations.

Bot's do have a promise though. They always execute your trade with you not watching. That removes the emotion of getting out of the Market to early, or staying in when you should have gotten out long ago. Forex can make you money, but most do not make money as they lack the discipline to stick with whatever trading plan they come up with.

Just manually trading the simple arrows though, you can see you can make money, which is the good news. Even without charting software, your right 1/3 of the time anyway, just flip a coin. Heads you go long, tails you go short, and limit your losses, let your winners run.

It gets more technical than this with bots, as most bots show winning results with massive draw down. Draw down is the amount of time the bot stays in the trade loosing money before the market turns around. In my example, the most draw down I had was 16 pips, which is pretty awesome.

The forex market has a big draw on people, because you can trade for free, with free charting software, and to open a real account, some brokers will let you start off with a mini account for less than 100.00. You may not pay the bills with it, but using real money helps you learn to control those emotions, while you get better at it.

Enough for now. There are tons of ways to make money, for a Holy Spirit led believer, there is no reason to stay broke. Most successful traders are not making millions, but they are paying their bills, and having extra. Not only that, but they work when they want.

Mike.
 
B

Brother Mike

Guest
#2
LOST MONEY!
.
View attachment 7248
My Robot trader lost money on it's first test. In one night it traded 3 times, and had two wins, but had a bad trade that lost 116.70.
This is why we don't believe all those companies selling the next great Robot trading system that promises you lots of money while you sleep. Back Testing data means almost nothing in the Markets, and my Robot took a trade that went in the opposite direction as soon as it entered the Market.

View attachment 7249

So, now the thought is to correct this from Happening again. What I did was add another indicator called Advantage Lines. That is the blue arrows you see in the chart. Now there has to be a Red arrow, and a blue Arrow no less than one bar apart from each other to confirm the trade.

Now, I like to trade, but I am looking for that Holy Grail system that trades while I sleep. If I can get this to gain money, I will run it on a real money account, but for now, the kinks have to be worked out.

Mike.
 
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#3
Hi Mike

If you're not familiar with how our financial system really operates behind the scenes, this is a great read on how markets "really" operate.
http://www.amazon.com/Shock-Doctrin...1440682549&sr=1-1&keywords=the+shock+doctrine

Having to engage markets in various forms of business led me to a similar conclusion, long before it was identified as above.

The general lesson? It is big snake infested territory, systemically designed and structured to bite everyone that puts their hands in it, without exception.
 
B

Brother Mike

Guest
#4
Hi Mike

If you're not familiar with how our financial system really operates behind the scenes, this is a great read on how markets "really" operate.
http://www.amazon.com/Shock-Doctrine-Rise-Disaster-Capitalism-ebook/dp/B003KVKQB4/ref=sr_1_1?s=books&ie=UTF8&qid=1440682549&sr=1-1&keywords=the shock doctrine

Having to engage markets in various forms of business led me to a similar conclusion, long before it was identified as above.

The general lesson? It is big snake infested territory, systemically designed and structured to bite everyone that puts their hands in it, without exception.
Wow, thank you for responding. I certainly did not expect any believers around here to know anything about the Markets. View attachment 7398

Starting with 5K demo account and real market prices, my trading bot made money the days I ran it over night, catching the EUR market open at 2am (My time) It is up 118.00 which is good, and would have been up using real money, but............................... Unlike the back tested data which is no indication of future market movement it lost a bunch of money also. 7 loosing trades, 12 winning trades. I have it set with backtested data to be over 80% right, and with real market prices it's just barely above 50%

So even with a 5K account, and letting the robot trade, it might stay ahead, but it's not going to pay bills and not a sure enough things to just let it run and trade away with real money.

My wife is trading on our real account, and she had 3 good trades, but she let all 3 keeping running without setting a reasonable limit order, so she waited and watched all the money she made 3 times go into loss, or break even.

That is the "GREED" factor, trying to get more than what you should reasonably expect. Cut your losses short, and have a set amount to take before getting out, even if the Market is still going in your direction. It's a head game, and most people loose at it.

Your right though about it being a big snake. Trillions run through the Currency exchange every day. It won't notice if you take a Million or loose a million. It keeps going with no mercy.

it's still fun to trade though. I won't touch stocks, those prices are based on someone's opinion. Futures (Pork Bellies, Orange juice so on) take a pretty good size starting capital to just buy one contract, and is based on news reports, but most the time the reports are based on the actual available product, not someone just guessing, and Forex, trading currencies is based on peoples emotions on how the economy is doing. If the U.S post that the unemployment rate is up and this is up, that brings the dollar value down compared to the EUR, the actual numbers don't even have to be true.

Forex, Futures and stocks, and right now anyone can trade Forex start up of less than 100.00. It's a good deal, as it teaches you to trade and deal with the emotion of using real money without risk (Cept your 100.00) If you know how to chart in Forex, the same thing works for the other two markets.

Mike.
 
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#5
I worked interest rate hedges using futures market puts and calls long before the public ever started "day trading." And bonds as well. Interesting game. The only people that ever make money are those who have connections to same, and that comes with compromises to the world.

I have a cousin, a Godly believing man, who has tried to perfect bot trading for decades now, still banging his head on it. He did however make a small fortune, as described above.

If you toss on some Bollinger Bands to your charts, you'll see the snake, clearly. :lol
 
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#6
etrade of some sort cost a brother every thing he had. all he had worked for , his house , his retirement. .. he chose not to listen had some idea he was smart and God was on his side...
 
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#7
It's not only trading. I know scores of people who work and worked for public companies and had company stocks, and their entire retirement accounts, wiped down to nearly nothing. Some lost millions, seemingly overnight, if they hadn't diversified or set tight stops.

The system is so rigged now, that employees can't even hold their own retirement funds in cash position accounts within the system, and are forced to put it in the market.

I've warned my children to steer clear, and hold conservative positions, only, where most of the big money hides out.
 
B

Brother Mike

Guest
#8
I worked interest rate hedges using futures market puts and calls long before the public ever started "day trading." And bonds as well. Interesting game. The only people that ever make money are those who have connections to same, and that comes with compromises to the world.

I have a cousin, a Godly believing man, who has tried to perfect bot trading for decades now, still banging his head on it. He did however make a small fortune, as described above.

If you toss on some Bollinger Bands to your charts, you'll see the snake, clearly. :lol
Your cousin is a very patient man. Though my results were positive, and my bot trading program can be adjusted with any indicator and made the way I want, there is no indicator good enough.

Bot's do a great Job of taking a good market position, they do a horrible job at managing the trade after it becomes a market order.

They sell trading bots for MetaTrader 4&5 and show all the great back tested data, but I have found that back testing a couple months, then back testing a couple years produce the same exact results. Back testing data means nothing, which is a issue with setting up a bot to trade.

I can set my bot to trade 100% correct for 2 years, and it will dump all the money once it goes live into the market.

Bollinger Bands are good, but the Bot does not do well with them. I am using Gecko's software Bulls and Bears which is a indicator they made that combines Fib and Elliot wave with MACD (Moving Average convergence and Divergence) and a moving Average. Pretty amazing indicator since it figures out the Fib and predicts the retrace levels, and future market price point based on Fibonacci and Elliot wave combined. The Indicator was 900.00 though, so heck with it, I am using it. As with all indicators, it does not do well in static markets that are not moving. That is where bots loose lots of money, when the Market goes sideways.

I Started out with interest in the Futures Markets. I ordered Ken Roberts course back in the Early 90's and learned his head and shoulders break out, the Channel break out, 1,2,3 tops and bottoms. You had to get charts from a subscription service and put it on your own graph paper.

etrade of some sort cost a brother every thing he had. all he had worked for , his house , his retirement. .. he chose not to listen had some idea he was smart and God was on his side...
How the heck you loose your house and everything you have? This does not sound like trading. You start with money you can afford to loose, and you don't trade over 5% of that actual account. If you have to get a loan, or put another Mortgage on your house to trade, then you have no business trading.

God also expects us to be diligent in everything we do. That means taking the time to learn, not handing your money to someone else to trade for you. There is a very good reason I am not letting my expensive trading bot just trade away and make tons of money for me. Autopilot cost 500.00, but it's the only indicator that allows you to plug in any indicator and tweak it without programming knowledge.

My real account has not done that well, but that is OK, it's my second Real account. The first one I traded away, but it was only a 300.00 loss, money I set aside to loose. I learned I did not know much about trading, which is a good reason I did not open a full size account and dump 5K into it, let alone put a house up to trade with.

My Second account has done well, We have had it for a few years, and it still has money. My Wife trades that, and she gets greedy, she has yet to learn to treat it like a business without emotion. I jump in from time to time to make back money she lost, it's not that hard, but I have been looking at charts now for several years, things make sense, and I have learned to limit my loss, and look for another trade.

The truth is, first time traders almost always loose their whole accounts. It's a given that your first couple accounts will tank into the hole. That is OK though, you don't learn to ride a bike without falling off it.

The Markets have no mercy, and a price spike can wipe out your account quickly. You need to know this going in. FXCM lost Millions on spike from the Swiss Frank. Nothing thy could do, and could not exit all their customers positions before it was to late. It happened that fast since Forex has no Limit up or Down. Futures are protected by limit moves.

This move put several Forex Brokers out of Business
http://www.wsj.com/articles/swiss-franc-move-cripples-currency-brokers-1421371654


As Smaller said, its a vicious snake, and you don't go in without gloves, boots and protection. Even the most professional snake handlers get bite once in awhile.

Mike.
 
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#9
The problem is that the market itself is quite crooked. IF a lot of small traders have positions, long or short, with reasonable stops and the market makers want to move things up or down they just whipsaw everyone out. They are crooks. That's the long and the short of the market.

No computer program can protect a small trader from these bigger thieves.
 

JLB

Jesus is the Way, the Truth and the Life
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#10
Now, who would pay 500.00 for a program that auto trades for you, when no auto trading program has ever worked out of the thousands made? (Raises hand)
Ok, it seemed like a good idea at the time, lets take a look.
View attachment 7236

As you can see, setting this up and simulating back trading just 3 days, I would have take in 783.60. The trading system is simple. The bot just makes a trade when one of those red arrows shows up on a Range 8 chart using Gecko Software Bulls and Bears plugin. (900.00)
Now this is a full demo account, using 3 trades at a time, with 5,000 fake starting money on the EUR/USD.

Is Bot trading the wave of the future for traders? Not really, but if this works with real time trading, I will use this very simple system with real money and see what it does.

Most bot trading software look at past years and simulates those trades, adjust itself to make the most money and best trades through the years with back tested data. Many so called bot trading programs do just this, and provide us with tones of great trading results like I have shown you here.

The problem is, that history in the markets don't mean a blessed thing. Playing with Auto Pilot in the past, I have set it to trade 100% accurate over 2 years, but set it on real market prices, and it suddenly trades in real time at about 30% accurate. Bot's can't do what humans do yet, and that is adapt to real market situations.

Bot's do have a promise though. They always execute your trade with you not watching. That removes the emotion of getting out of the Market to early, or staying in when you should have gotten out long ago. Forex can make you money, but most do not make money as they lack the discipline to stick with whatever trading plan they come up with.

Just manually trading the simple arrows though, you can see you can make money, which is the good news. Even without charting software, your right 1/3 of the time anyway, just flip a coin. Heads you go long, tails you go short, and limit your losses, let your winners run.

It gets more technical than this with bots, as most bots show winning results with massive draw down. Draw down is the amount of time the bot stays in the trade loosing money before the market turns around. In my example, the most draw down I had was 16 pips, which is pretty awesome.

The forex market has a big draw on people, because you can trade for free, with free charting software, and to open a real account, some brokers will let you start off with a mini account for less than 100.00. You may not pay the bills with it, but using real money helps you learn to control those emotions, while you get better at it.

Enough for now. There are tons of ways to make money, for a Holy Spirit led believer, there is no reason to stay broke. Most successful traders are not making millions, but they are paying their bills, and having extra. Not only that, but they work when they want.

Mike.

I have taking 50K to 500K in my demo account many times.



JLB