Does Auto Trading Really Work? Wellโ€ฆ It Dependsโ€ฆ

15 Price Action Patterns Insiders are Using If a hedge fund managers were using 15 specific price action patterns would you want to know?

Auto Trading
These days, there is a lot of hype surrounding auto trading systems. If you are a regular subscriber to any Forex website, you have probably seen ads or received emails promoting trading systems.

Every company claims to have the best trading system and to be able to make massive returns. Of course, we all know that most of these robotic trading software systems are not even close to what they are made out to be.

A majority of you have probably tried one or more systems and seen them fail. Of course, when you spend two thousand dollars on a system to do your trading for you, you expect it to work and when it doesnโ€™t, it is quite a disappointment. However, we shouldnโ€™t really be surprised that these systems donโ€™t work.

The Dangers of Automated Trading Systems

First of all, it is sad to say that many people in the business of selling these trading systems do not really care about the success of their customers. They know that if they make the system sound profitable and look cool that people will buy; and once they buy, what do they care if the system doesnโ€™t work at all?

Even if a company is honest and does care about its customersโ€™ success, there are still several things that can make a system fail. One common reason why even honest companies fail is a lack of testing. For instance, a company may develop a trading robot and test it on a master account and have very high profits for three or four months.

They see the results and are so excited that they just canโ€™t wait to get it out there so they immediately put it on the market for sale. The main reason this is not good for you, the customer, is because the testing was EXTREMELY narrow. A robot trading on one account, with one broker, and at the times that one trader happens to have it running does not give you a complete picture of whether or not this robot can be successful in the long run (NOT EVEN CLOSE!).

Read the guide to high-frequency trading here.

They Donโ€™t Work in Varying Market Conditions

Another way that companies go wrong is when they release trading software that is completely built around the current market conditions. Many times a company will discover a strategy that is raking in the cash and turn it into an automated trading system, do some quick testing and ship it out.

When a customer buys the system, it may work for them for a while, but as soon as the market conditions change, the robot is useless. This is where you need optimization. A good trading system should be based on a proven strategy that has worked for many years and then is only slightly modified as the market conditions change. Also, read about the trading conditions you want to avoid in the forex market.

Our Auto Trading Software

Keeping everything that we have just talked about in mind, the team Trading Strategy Guides thought that we could build an automated trading software. One that actually works and that people would consider a real investment when they saw that it truly made them money in the Forex market. Also be sure to read our secret Gold Trading Strategy.

Considering all of the things that these companies do wrong, we wanted to make sure we did a few things right:

1.) Not claim that our system wins every trade and can turn a thousand dollars into a million dollars in a month. We understand that trading is not gambling. The way to truly succeed in Forex is to have larger winners than losers and win a solid percentage of your trades. That is what we designed our system to do.

2.) Test like crazy! We understand that most systems fail because they have not been tested in enough scenarios. Because of this, after we developed our system, we gave it to about 200 real traders, just like you, to do extensive testing. They all traded it their own way with whatever broker they chose, and gave us feedback constantly. With their feedback and testing results, we optimized and critiqued the system until it reached its full potential.

3.) Base it on a proven strategy that has worked for years. We based our system on Casey Stubbsโ€™ personal strategy that has been successful for a long time and works in any market condition.

4.) Make it optimizable. We created our system so that we could tweak the settings to make it more profitable when the market condition changes.

With some of those key components, the help of our 200 traders, and hundreds of hours developing and optimizing, Trading Strategy Guides came up with the Forex Catapult. The Catapult is, in fact, a trading robot; but unlike most of these other systems out there it has been properly built, tested and optimized to be successful both now and in the future.

It is not supposed to win a 100% of its trades or double the account size every week, but it continues to pull in profits week after week with a solid strategy and money management just like a great trader does. This is why I believe that Forex Catapult is the best system around.

Thank you for reading!

Please leave a comment below if you have any questions about Auto Trading!

Be sure to check out TSGโ€™s free online tools, including the forex compounding interest calculator.

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15 Price Action Patterns Insiders are Using If a hedge fund managers were using 15 specific price action patterns would you want to know?

9 Comments

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    • ย Pipstealer,
      Thanks for commenting, I dont think my EA is the best I dont think I said that at allโ€ฆ..
      I am just saying that I am different than many other EA promoters, I trade my live accounts with the software that I created. I also am on this site and on twitter day in and day out working and helping and trading each and every day. So I have built some credibility that others do not have because all they do is post falsified statements.
      I do appreciate the comment and feedback it means a great deal to me. but I must have done a very poor job if you think I am like every EA site around????
      Oh my!ย  I must have failed my mission!!!!! I am here to help traders and not scam them. If you think I am just like them it is bad on me!
      I am going to evaluate my business because I donโ€™t want my name even mentioned beside those other forex Sharks.
      If I come across like that please forgive me.
      Thanks
      CAsey

  1. While Im not really interested in using a robot, I adhere to price action trading and earn a good full-time livinmg with it.ย  The real purpose of this note is to defend the integrity of Casey.ย  While I dont know him personally I have appreciated his efforts to help people, all the way back to when he was a regular contribuitor to Baby Pipsย  He appears to be a decent guy with no ulterior motivesย  There are some good honest people in this world.ย  Thats all.

  2. Eas are notorious for over-promising and under-delivering. Given the right amount of historical data and manipulating that data through optimization you can make any EA appear to be aย winningย strategy. One shortcoming in the Catapult testing was that the 4H candle closes at different times depending on which timezone the MarketWatch is based in. If the strategy had been based on 1H or less timeframes the broker timezone differential would not have mattered.ย 

  3. EAs can be a valuable tool but should not be used in place of actually learning to trade and know your strategy. I have used a strategy called Asia Mirror for over 2 years and now use the Asia Mirror EA to trade that strategy. I fully understand that strategy such as the idea behind it, how it sets up, how the positions areย structuredย and how the exits configured. It is based on price-action, trend, fib levels. It is not always a winner and sometimes it crashes and burns but overall for theย long-termย it is a very solid andย profitableย system. As you trade it, you will develop a sense of how theseย currencyย pairs behave and sometimes you will not trade it even though the setups are valid. Using FXBOOK to track yuor strategy gives you an ability to see how it performs with various currencies and what days of the week appear to be more suited to it.

  4. This looks like a great system.ย  How can I have access to it? What is the price?ย  I am a beginning trader, with large goals. I have a limited amount of money to start with, and wish to add 5% daily to my balance, using a U. S. based broker with 50:1 leverage.ย  Is this doable, or would you recommend something else?

    • ย Peter,
      5% per day is in my opinion way optimistice if you could do 5% per day your account would be over a million within the year, while it is possible I would recommend more safer target such as .05% per day and you will still be doing very well.

  5. I really donโ€™t think same..all works but the worst part is there working strategies,if one fails everything falls over.

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