[mnuonno]

If you expect to read why you should or shouldn't need to use a robot or which robot will make you win or loss money, stop reading!

This article goes beyond that and, as you will see, there is another task that the robot is useful for and nobody told you this, because this is a well kept secret used by the big investors, and I know because I used to work for one of them.

Let’s start from the beginning. What it is robot?

For me the best way to describe it is:

“A robot is a trading strategy that was synthesized into a logical algorithm that can be coded in a programming language to be executed over a trading platform; an automated strategy".

What is a robot for?

This obvious question is not too obvious at all and has two answers.

1. Of course the robot is for helping you to trade or trade automatically for you.
But also,
2. Is the only way that will give you a big picture on what your strategy, can perform for real.

Ok, you will say that you also can do manual backtesting, a lot of backtesting, but how much is "a lot"?

Regarding this backtesting point, you will find a lot of literature, but for me, the real thing is that the back test task for a strategy never ends, and because of that there is a huge amount of work that must be done before you can say that you have a wining strategy, no matter what other people say about a particular strategy, you must do your personal homework if you want to use it, isn't it?

If the backtesting process never ends, when is going to be enough, to end the tests and to start trading with it?

It is a hard question to answer, for example: in 15 minutes timeframe, manually we have tested the last 3 years and reviewed over 200 trades that have been made, all this for, let’s say, 5 majors pairs. It is enough...? Yes, but just to start.

Try to imagine how long will take and the effort you have to do to accomplish that amount of work on back testing manually, and here comes the biggest error a trader could make, it is to think that all that amount of effort is enough to ensure that his strategy is for real reliable.

Why traders make that mistake is simply because until now was no other possibility or tool to make a wider back testing or a much complete study of a strategy.

“All major banks without exception use their own trading robots. As much as 70% of trading on average and even higher in Forex is done using trading robots.”

Before, this problem did not exist at all, what problem? That while you are testing manually, the big fishes are testing thousand times faster and accurate using technology that now I'M
PLACING AT YOUR FINGERTIPS.


Using a robot not just for trading purposes, but for testing any strategy, is the only way you really will get to know what a strategy can do, because the “amount of work” point of view changes, while manually any huge effort you have made seems to be a lot of work, giving you the untrue sensation of “a lot of work done”, from the “using a robot” point of view, it is nothing.

For the people that like or ever thought to use someone else robot, sorry but I have to tell this, it is a nonsense trying to trade with something that you don’t know what it is doing or will do, even if you don’t know anything about Forex trading. It is similar to start trading with real money knowing absolutely nothing about the strategy you are going to use or trade with a strategy that you never tested before and you are not familiar with...

Please think; why not invest a couple of hundred Dollars to see what can do your strategy, for real, and the real operational range you strategy may have?.

Doing this as your first step will allow you to test and cover the longest period of time you can, in the majority of the financial instruments you want, before placing your strategy to trade, even manually, with a couple of thousands of real Dollars and at some point lose everything.
Isn't it cheaper?

So please, my dear fellow reader, consider seriously investing a little in making your own EA or robot for testing purposes too, before any serious intent of trading and before discover, in the hard way, in which point your strategy failed, and believe me, in some point will happen, the supreme strategy that works always and in any financial instrument, does not exist and can’t last forever just wining, if that were true, everybody that is involved somehow in Forex trading will be millionaire, in fact the statistics are against you.

Some examples to clarify what I’m saying with a real test I’ve made.




And the worst part of this analysis is that there is no possible configuration that will allow this EA or strategy to pass that particular point and avoid losing all the account in that particular pair that was EURUSD.

You might think that because the strategy performance was great in all whole 3 first years with more than 500 trades tested, it will continuing the same way, and if you are doing this test or study manually, you will think that all that work, that it is indeed a lot of work, will be enough to declare this strategy a winning strategy, and the truth is that it is very dangerous.

Knowing and seeing this, isn’t it that the whole picture changes?

Mario Nuonno Vass

[Arief Makmur]

If you expect to read why you should or shouldn't need to use a robot or which robot will make you win or loss money, stop reading!

This article goes beyond that and, as you will see, there is another task that the robot is useful for and nobody told you this, because this is a well kept secret used by the big investors, and I know because I used to work for one of them.

Let’s start from the beginning. What it is robot?

For me the best way to describe it is:

“A robot is a trading strategy that was synthesized into a logical algorithm that can be coded in a programming language to be executed over a trading platform; an automated strategy".

What is a robot for?

“All major banks without exception use their own trading robots. As much as 70% of trading on average and even higher in Forex is done using trading robots.”

this is a well kept secret used by the big investors, and I know because I used to work for one of them.

May I know, are the "Big Boys" used an Automatic Traders allready sold at Internet or they making by him/herself ?

What the robot type they used, are the Trend Followers or Counter Trend strategiest ?

Using a robot not just for trading purposes, but for testing any strategy, is the only way you really will get to know what a strategy can do, because the “amount of work” point of view changes, while manually any huge effort you have made seems to be a lot of work, giving you the untrue sensation of “a lot of work done”, from the “using a robot” point of view, it is nothing.

For the people that like or ever thought to use someone else robot, sorry but I have to tell this, it is a nonsense trying to trade with something that you don’t know what it is doing or will do, even if you don’t know anything about Forex trading. It is similar to start trading with real money knowing absolutely nothing about the strategy you are going to use or trade with a strategy that you never tested before and you are not familiar with...

Please think; why not invest a couple of hundred Dollars to see what can do your strategy, for real, and the real operational range you strategy may have?.

Doing this as your first step will allow you to test and cover the longest period of time you can, in the majority of the financial instruments you want, before placing your strategy to trade, even manually, with a couple of thousands of real Dollars and at some point lose everything.
Isn't it cheaper?

So please, my dear fellow reader, consider seriously investing a little in making your own EA or robot for testing purposes too, before any serious intent of trading and before discover, in the hard way, in which point your strategy failed, and believe me, in some point will happen, the supreme strategy that works always and in any financial instrument, does not exist and can’t last forever just wining, if that were true, everybody that is involved somehow in Forex trading will be millionaire, in fact the statistics are against you.

Some examples to clarify what I’m saying with a real test I’ve made.




And the worst part of this analysis is that there is no possible configuration that will allow this EA or strategy to pass that particular point and avoid losing all the account in that particular pair that was EURUSD.

You might think that because the strategy performance was great in all whole 3 first years with more than 500 trades tested, it will continuing the same way, and if you are doing this test or study manually, you will think that all that work, that it is indeed a lot of work, will be enough to declare this strategy a winning strategy, and the truth is that it is very dangerous.

Knowing and seeing this, isn’t it that the whole picture changes?

Mario Nuonno Vass

If Im looking for your pictures, you used EUR/USD BUT a few 3 years they cannot make it, Im assume you are use a Counter Trend Strategiest EA with an Avareging, or Hedging or maybe a Martieangle Strategiest just a little bit twist; because as I know since a few years ago the volatility from the EUR/USD allready change (going wild) not like a years before ... thats why your EA cannot make it.

[Maor.Levi]

If you expect to read why you should or shouldn't need to use a robot or which robot will make you win or loss money, stop reading!


And the worst part of this analysis is that there is no possible configuration that will allow this EA or strategy to pass that particular point and avoid losing all the account in that particular pair that was EURUSD.

You might think that because the strategy performance was great in all whole 3 first years with more than 500 trades tested, it will continuing the same way, and if you are doing this test or study manually, you will think that all that work, that it is indeed a lot of work, will be enough to declare this strategy a winning strategy, and the truth is that it is very dangerous.

Knowing and seeing this, isn’t it that the whole picture changes?

Mario Nuonno Vass

Can I just ask what your recommend the best strategy you have automated as to not waste my time anymore. I have traded a few year now and it is been up and down. your bots seem to go up and no down, except the last year which could be anomaly.

[FxEAGuy]

To Mario

Have you used any advanced sorts of optimized testing like the Asirikuy strategy tester?

I hear its good but I can't find a download here's some proof:

[henryduncan12]

From where can I download it?

[Johnston]

Yea I need to get my hands on that EA that just goes up and up and up and up and up!!!!


PPPPPLEASE!!!

[ciccino49]

To Mario

Have you used any advanced sorts of optimized testing like the Asirikuy strategy tester?

I hear its good but I can't find a download here's some proof:

Different topic totally, thats not what he is getting at... read here for that http://mechanicalforex.com/2011/08/t...t-mt4-api.html

[TopTrader]

I have to agree with Mario.

Creating your strategy into a robot is the surest way to see how your strategy will behave throughout time, with the addition of those times you are not at the computer to implement your strategy. So the robot becomes you, or you become the robot 24/5 in every market condition. If only there were a way for the robot to avoid news trading times, then it would be a perfect facsimile of me.

[forexsignals]

From where can I download it?

You can download a profitable forex ea from www.miforexsignals.com

[IIO]

You can download a profitable forex ea from www.miforexsignals.com

I think you missing the point.

[mnuonno]

Different topic totally, thats not what he is getting at... read here for that http://mechanicalforex.com/2011/08/t...t-mt4-api.html

You can have the most powerful or perfect tester or optimizer, all depends at the bottom on the data it uses, and most of them have that problem, bad data.

[mnuonno]

May I know, are the "Big Boys" used an Automatic Traders allready sold at Internet or they making by him/herself ?

What the robot type they used, are the Trend Followers or Counter Trend strategiest ?



If Im looking for your pictures, you used EUR/USD BUT a few 3 years they cannot make it, Im assume you are use a Counter Trend Strategiest EA with an Avareging, or Hedging or maybe a Martieangle Strategiest just a little bit twist; because as I know since a few years ago the volatility from the EUR/USD allready change (going wild) not like a years before ... thats why your EA cannot make it.

EXACTLY…

But of course not in the strategy, it is pointless which one you use for this discussion, but the important point to notice is, for you to make that wise conclusion you need those graphics and those, manually are impossible to generate.

And please stop to believe that the free stuffs you get in internet will work, there is no free lunch and if you where the owner of a money making factory, do you really will give it away for free?...

I think you will keep it as a secret as well as the "Big Boys".

[FX1971]

EXACTLY…

But of course not in the strategy, it is pointless which one you use for this discussion, but the important point to notice is, for you to make that wise conclusion you need those graphics and those, manually are impossible to generate.

And please stop to believe that the free stuffs you get in internet will work, there is no free lunch and if you where the owner of a money making factory, do you really will give it away for free?...

I think you will keep it as a secret as well as the "Big Boys".

I pray one day to be one of the big boys, or at least work with them.

[fajjapips]

I like what Mario has to say, people expect too much from robots, but they also put too much of an emphazsis on their manual trading strategies... a mix between the two is prime. Is that basically what you're saying Mario?

[IIO]

“A robot is a trading strategy that was synthesized into a logical algorithm that can be coded in a programming language to be executed over a trading platform; an automated strategy".

Ahh yes but what is the most useful strategy. The $64,000 question. Is there a website that compares all bots together? Does anyone know of one? There must be something like that out there.

[nnnms]

Ahh yes but what is the most useful strategy. The $64,000 question. Is there a website that compares all bots together? Does anyone know of one? There must be something like that out there.

FOREX EA LAB compares 100+ commercially available robots as you suggest, but Mario is talking about automating your custom strategy, custom work, not someone else's.