Quite a while a go I tried automated trading of Forex, with some fairly mixed results (my experience is described here in this posting). Since then a number of things have changed, including:

• Reliability: In the past reliability was a major issue for me as I struggled with power failures and internet disconnections. However, now you can get your hands on some rather cheap virtual dedicated hosting on a windows server from godaddy.
• Trading platform: The previous platform I used (wealthlab) was not really designed to trade the FX market. Since then Metatrader v4 has come to the market as the dominant autotrading platform for FX and it is not too shabby a platform I must say .
• Access to reliable trading systems: When I started in the area of automated trading, it was not easy to get your hands on proven trading systems. You had to write them yourself. Now, while I am skeptical of black box trading systems, there are some on the net with reasonable back and forward test results (check out CK’s excellent blog for pointing these out to the community)
• Time: Having a newborn at home doesn’t give me a lot of time to focus on FX trading, so looking at automated trading has just got much more compelling again.

So, while I remain incredibly skeptical, I am curious to see how automated trading has changed since I looked at it more than 2 years ago. I will do some testing and report back later.

This entry was posted on Saturday, July 5th, 2008 at 9:24 pm and is filed under Automated Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.