Automated Forex trading data clear as mud
Posted by Asaf Yigal in Automated Forex Trading, Forex Trading, tags: Asaf Yigal, Automated Forex Trading, automatic forex signals, forex trading signals
A big trend right now in the industry is automated Forex trading of signal providers. Most of the Forex brokers today offer their own proprietary solutions and there are various independent providers like Zulutrade, collective2 and others that offer the ability to automatically execute signals.
I’ve spent some time over the past few months looking at these automated trading solutions and, as a trader I have to tell you, I don’t see how anyone will be able to make money with these platforms, as the lack of transparency and accountability is astonishing. I’ve looked at a few leading signal providers and they trade without stops, keep losing positions open forever and hide poor performing months under different names. Also, the lack of properly presented performance information makes it impossible for the educated investor to reach an informed conclusion that will make him money.
The main problems these platforms have, are that they 1) rely on trading signals that are executed in demo accounts and 2) don’t rely on a specific trader that manages real money. In these scenarios, replicating a signal lacks the most important components of trading, which are money and risk management and trading on a demo account versus a real account. This simulated trading style relieves the trader from worrying about his losing positions as it’s not real money anyway and the market will eventually turn around.
We see a change in this market of traders following with the launch of Covestor’s and Kaching’s new services. Here at Currensee, we’re working on an innovative way to give our members the ability to follow real trades made by real people with real names and real performance using a real Forex trading account. We call it full transparency and are seeding this change and will be the first company to offer such capabilities in the Forex space.
If you are a consistently good trader and you are interested in learning more about how you might participate in this new service, we’d love to hear from you!
=====
Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.
-------
Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.
Entries (RSS)
Asaf, that’s a great point you made with this post. When I joined Currensee I wasn’t sure how much I will benefit from it. But now I start to see how much of an advantage you have (as a business) over communities like Forex Factory, Babypips, etc. I think you’re definitely moving in the right direction.
Here’s a thought: Since you have performance data of everyone in Currensee, why not have a reputation system? For example a badge that shows this trader is in the top 5%, 10%, 25%, etc. in terms of performance. This way, when this trader posts something in a discussion forum at Currensee, people know how much credibility she has.
Keep up the good work.
[...] an early private beta mode, and is limited to a small number of traders. More details are on this blog post. Signing up is through this short [...]
Yigal,
You hit the nail on the head in this post.The challenges of automated forex trading are many like disclosing the core components of their systems, under which market conditions are such systems designed for(uptrends,downtrends and trendless/sideways) and if key components such as money and risk management are excluded from such systems, how on earth are they making money?.The truth is that they are not really making money and if they do, it is ephemeral. The popularity of automated forex trading is not being pushed by real industry experts but mostly marketers/software sellers but me and you know who their targets are, the new comers/novice traders.
The launch of Currensee has bridged that gap which are listed below:
1. Transparency
2.Ability for members to learn from real traders and their actual trades
3.The chance to share ideas and reduce boredom in trading intelligently.
4.The Social Indicator
Yigal, you have my 5 STARS.