Every respectful trader, at least at the beginning of his/her trading career looked at one moment at the automated trading systems commercially available on the market. And there are a lot of them available, being more or less expensive, but having one main common thing: promising quick results with no or little work. Now, trading is not that easy, and I am not trying to say such forex trading system don’t exist. However, if being in the situation of dealing with one, here’s what you should look for.
First of all, price is a good indicator for this product as it is for any other product. The higher the cost, usually the better the EA (expert advisor). But still this aspect boggles my mind in the sense that if somebody really discovered such an automated forex trading system, then why want to sell it in the first place for money, when, if it is that good as claimed, you should use it for your own profits. Presuming you find an answer to this question, let’s move on.
Second, make sure you want to have an EA that it has been back tested as long as possible, taking into consideration as many candles as possible on those tests that show you how profitable is. Markets are changing and because of that one strategy may be profitable for a specified period of time but may turn out to be a disaster when trend changes and trading conditions change as well.
And third, you will need to have a strong Internet connection in order to avoid your platform being disconnected when the signal is lost. And some EA’s just forget everything when such a thing happens and start trading from the moment the Internet connection is established again, forgetting about previous conditions.
In order to solve such inconveniences and to avoid possible power shortages (strange things happen exactly when most in need) you may opt for a VPS (virtual private server) package offered by companies that offer you a nice and safe 24/7 Internet connection with the guarantee power shortages will never be a problem. Of course, it all comes to a price, but anyways, if you’re still to make money with your EA than this is a small price to be paid.
The above are just a couple of things one may look when trying to deal with an automated forex trading system, and they do not imply they are all losers. I am sure that big institutional companies run such trading systems, especially for the high-frequency trading. I just haven’t seen one commercially available for the regular retail trader.