Forex Market Commentary
The Bots have come of age.
That's if you can trust some of the pretty slick marketing that you seem to find everywhere on the internet these days.
For
the last 4 weeks I have been taking a serious look at these so-called robot
trading programs for forex and commodities. It’s been about 6 months now since
I first noticed the appearance of some pretty incredible and eye-catching
advertising; usually running along the lines: unemployed man turns $1000 into
$1.1 million! Yes, very incredible statement indeed! Further research brought me across this bot,
that bot, the Swiss system, the Aussie system and so on and so forth. So boots
on the ground I went in and took a look around and largely became unimpressed.
On the whole I did not feel that some of
the robot trading signals matched any intra-day signals in my lists
were I to put my helmet on and become a day trader myself. I tried looking at 15 minute bars and even 1 minute bars but could not trace any discernible convincing correlation between robot initiated trades and the trade signals that I use on candlestick charts. Therefore, I would advise extreme caution to the public before considering paying for advisory fees as such based upon robot auto trading. Usually based in
Cyprus or Ireland or an offshore location with an absence of physical address;
the writing is on the wall: This is an incredible marketing gimmick at the very best on the internet and the magic of the numbers can always coax the public into the robot trading program.
Why are we so lazy that we have to look to robot systems in the first place? Each and every one of you has it in you to become a “robot” yourself and automate your trades. All that is required is the mental discipline to separate your personal from business life. Achieve that feat and you are on par and even better than a robot program.
How many times you rigidly dictate to yourself you will stop out at 50 pip retracement and then you go break your own rules at 51 pips because your ego cannot let go and take it on the chin? 51 pips becomes 55 pips becomes a slide to 60 pips and you’re still hanging around for a turn around before your trade becomes an utter rout.
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| Omega Research GBP, illustrating slow,medium,fast m.a. with RSI. |
For technical day traders in all the years of trading I can fairly say that the use of candlestick charts overlay on to slow, medium and fast moving averages with RSI can give the trader a 70% probability of understanding directions. That's a real edge for any trader prepared to discipline himself or herself and apply a set of rules that must be adhered to in the face of a loss.
Incorporate 5, 50, 200 day moving averages, with RSI, and with candlestick patterns in search for key reversal signals such as hammer, hanging-man, bullish engulfing, bearish engulfing, piercing pattern, dark-cloud-cover, evening and morning-star formations and watch the following 2 15min bars and directional trades can be discerned with a 70% probability which is sufficient to give you enough edge to compete with any robot trading program out there on the internet. of course how much better if you can balance your concise technical knowledge with fundamental reasoning of the mechanics of the FX markets.
You have it in yourself to become a good trader without recourse to robot trading.
Pieter Bergli - DeLoren Trust Holdings
A non-profit commitment to provide education on the properties of currency markets. Forex market commentaries and media reports for free
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers.
* European Union laws require European Union visitors to this blog to know that cookies are used by Blogger and Google, including use of Google Analytics and AdSense cookies and in reading material from this blog do consent to the use of such cookies
A non-profit commitment to provide education on the properties of currency markets. Forex market commentaries and media reports for free
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers.
* European Union laws require European Union visitors to this blog to know that cookies are used by Blogger and Google, including use of Google Analytics and AdSense cookies and in reading material from this blog do consent to the use of such cookies
