Forex Robots – part 2

February 1, 2010 · Filed Under Education Centre, General, Reviews

Here is part of the email that I received:

Hi Jurgen,

Have you noticed just how many new trading robots are coming onto the market? They are generally called EAs or expert advisors. One day they are here… the next they are gone… all hype – all B.S.

It just seems that every time I open my e-mail there’s a new EA
being launched. What I also noticed is that they all have names
that belong in comic books!

Not only do most of them not work but it’s becoming more and
more apparent that this new bunch of EAs are really just a
marketing exercise.

This is VERY annoying because EAs are probably the future of our profession. Not only that, they allow people with full-time jobs to take part in the market and a good EA can produce much higher results than just about any traditional Forex trading method.

This is one of the main reasons why I have been following The
Forex Robot World Cup… the biggest and most important
INDEPENDENT FX robot developers competition… real money – live trading!

I wanted to see if these guys were the real McCoy. I wanted to
make sure they were transparent.

Actually, let me rephrase that, I was hoping that these guys
were real because there’s really no one in this market prepared
to stick their neck out and lay it all on the line.

This actually was a marketing email as well. I chose it because of its reference to the FRWC. Some pertinent points that I highlighted perhaps demand greater awareness. These are in order from top to bottom

the increasing number of EA’s / trading robots ( possibly a reflection of the rapidly increasing no. of lay- participants in the fx trade
the short-lived existence of so many EA’s – if for no other reason than that markets change and will render even the best of EA’s redundant
the high commercial attraction of EA’s giving a high success rate in marketing such products. Why? It frees the trader from taking responsibility in making trade decisions – more about this and the psychology of trading in another blog
the belief that EA’s would form an essential part in future professional trading begs serious doubt – this would be a nice topic for a forum discussion
that transparency of a trading sequence and its results are of crucial importance – as is your own meticulous record keeping. The fact that FRWC is trading a live account with real money is meeting 100% this requirement and thus is getting my vote for closer attention.

There you have it. I am not an affiliate to the Forex Robot World Cup,but I certainly may consider it at a future date. Nothing beats live, real account trading, pointing into the future, and then being scrutinized for its performance. This is real transparency.

Tags: marketing, psychology of trading, trading method