Automated Forex Trading System

Are you interested in finding that perfect automated forex trading system that will do all of the work for you while you make big money? Guess what, there is no such thing.

Once you've traded forex for awhile (at least 3 years) you will start to have these revelations and begin so see how silly or naïve you were when you first started trading. One of the things I came to realize is there is no perfect technical trading system out there. As a result, there is not a perfect automated strategy that can just run as a "set and forget" system forever without ever being updated or tweaked. If someone knows of one that has run for over 2 years with good profit and little drawdown, please let me know.

With that being said, there are some good Expert Advisor (EA) programs and automated trading systems out there. The problem is that most of the profitable ones will force you to sit through large periods of drawdown. As a possible solution to this, I have decided to use several automated trading systems with very low leverage to supplement my live trading. The secret is to find out the maximum open and closed drawdown of the system and then account for that when you chose your lot sizes.

I expect to see a maximum open drawdown of 200-250 pips. If I don't mind risking 25% of my $1,000 account trading this strategy, then I would place each trade with a pip value of $1. At the worst possible time I would be down 25% of my account as planed. As you can tell, Money Management plays an import role when choosing an automated trading system.

The two most important factors when choosing an automated system are:

Consistency

Drawdown

Have you ever visited some of the EA championships where different people compete to see who has the best automated system? The first thing that I always notice is that the winner for one month is usually not even listed in the top 5 for the next month. The reason for this is that most of these EAs are not consistent. Sure they can make you 500 pips in one month, but, you have to be willing to sit through drawdown periods of over 1,000 pips. I would much rather have an EA that slowly made me 50-100 pips per month with little drawdown. Slow and steady wins this race.

Look at FXDD-Auto