The dangers of grid robots and my very slow EURUSD short.

 

So it’s been a slow kind of mover after an initial burst on my EURUSD short.

You’ll note the targets are now in pips from price which means you can see at a glance how far you are from your target. Anyway – here it is I took some profit out of it by moving my stop down as it’s so low. Currently @ 45 pips profit.

 

The Dangers of Grid Trading

I watched a very interesting trading video yesterday.

https://www.youtube.com/watch?v=yNw2d-ilFXY it shows an $85k real account wiped out!

I have always been worried about grid trading (that’s why I don’t do it) Grid trading normally works like this, if you know a pair generally heads bullish then when it moves bearish you put a lot of buy orders on. Then, when the pair heads back up it takes in your buy orders and then you take profit at the top before it turns down again.

Sounds great?

So where it goes wrong is that if you have a pair lets say that drop 50 pips, come up, take your 5 orders and lock in your trades then changes direction fast back the other way you are left with 5 bad trades (unless you let them stop).

Sometimes these systems can make money for months on end and then lose it just as quick!

The video also shows how you can manipulate Myfxbook to only show what you WANT people to see. In this case the trader had hidden the live trades so that means that no -one could see how much his trades were losing at anyone time.

I did try out a system like this some time ago with bad results.

STRobot is not like this

The SignalTrader Forex Trading System Robot works on some strict principles.

Firstly he identifies support and resistance using Macros, then looks @ the price and sees where it is, calculates stops using ATR and a moving average and decides if this is a trade he wants to take, then he waits for the SignalTrader Massive indicator’s streams to cross and takes the trade. He also makes trades safe and manages stops. He only trades with the trend so looking at the Signal line in the above chart he will only tread shorts below it and longs above it. Basically behaving like  a trader.

(Without the emotions)

He does a few other things as well but I don’t want to let out ALL my secrets. (Some things he does are processed on external servers.

To find out more:-

http://www.strobot.co.uk

Lunchtime Update GBPAUD rallies.

So we’ve been sitting in a GBPAUD long for 5 days, this morning it was 70 pips against us but just could not break through the support @1.81984 or so.

Then GBP news came and off we went, it broke straight through the first target at 1.82890 and is now in a small pull back.

As you can see GBP still has some room to go with my TP at 1.83731.

This is a robot trade in fact as all of these are, I am just highlighting what it did!

http://www.strobot.co.uk

GBPAUD 3 days in…. flat to bullish

I have a 3 day old trade on GBPAUD long – so far in the last 24 hours it has dropped 50 pips bounced back into profit and then dropped 30 pips. (roughly)

We are expecting good unemployment data from the UK later in the week but my feelings are that we just hold this trade, This is the bottom of a very slow moving bullish trend, we are sitting above the 50ma and just below the 200ma dailies. The pair is making higher highs but it is very very very slow and boring.

Luckily STRobot the trading robot doesn’t mind that and so I’m leaving him in charge.

http://www.strobot.co.uk

STROBOT Trades closed prior to FOMC and a doubled account.

As a safety measure I shut down my STROBOT trades this morning. STROBOT managed in 24 hours to pull around 150 to 175 pips profit.

84 pips , 61 pips and 60 pips and 15 pips and 0.1 pips,  here is  a screen shot of the $100 account.

I have upped my lot size slightly now and we are looking for new trade orders. I wrote yesterday about the trader that doubled a test account with the robot. He kindly allowed me to post a screen shot of the account.

 

http://www.iwanttobeaforextrader.com < STRobot.

(Please note past performance is not an indication of future performance, please remember the Forex markets are incredibly volatile).

#forex 66 pip Robot Trade from Last Night and EURCAD

Last night I had an entry order go on EURJPY long, robot trade, however the price was NOWHERE NEAR the entry! Bizarre, will be contacting the broker about that one. However woke up this morning to a new strobot (SignalTrader Trading System Robot) trade that was up 40 pips and then went up to 66 before taking profit.

This morning SignalTrader is joining Morgan Stanley in a long on EURCAD the entry is sitting at 1.3185 but ofcourse SignalTrader Trading System will move the entry until  the market is ready to take it.

You can see the Gold underneath the green indicator on the lower Indicator Window (SignalTraderStrength) this shows that the pair is ready to re-trace at some point in the not too distant future and as the pair is in a bullish weakly the robot has chosen a healthy 134 pip target up to 1.54281 – but it has to change direction first!

The SignalTrader Trading System is available from http://www.iwanttobeaforextrader.com

 

 

The Forex Robot Myth and a Special Offer to my readers.

You’ve probably read me saying that Forex Robots are dangerous. I still stand by that because what works now may fail if market conditions change. I have however, quietly without anyone knowing learned the meta trader 4 scripting language and have been developing an expert advisor.

You may have noticed the templates I have been publishing for MT4, I have spent a lot of time studying the MA’s used over different timeframes and testing different settings and have developed an EA that basically seems to win 99% of trades. I am currently at the stage that I am testing on a LIVE account.

The thing, I think about Forex Robots is that from what I’ve seen of tools like Blessing etc,  they work fine most of the time but when they fail, they fail big time, often because the Risk / Reward is not right. Much like normal trading – if I am risking 50 pips for 150 fine, if I am risking 50 pips for a possible 25 pips, the trade is bad and should not be taken.

The problem with trading to quote Pro-Act Traders Scott, most people are keen to “Push the Button” they want to make money so bad they lose because they come in too early, (which is one of my habits, I don’t make as much profit as I could because I see a set up and go in too early).

So here’s the deal. If you sign up with an account with BelforFX and deposit $200US I will let you have a free copy of this robot when it is finished Beta testing ( a few weeks!! ).

If you want a paid copy, I will be releasing it soon but I have not decided on a price yet. Just contact me (if you subscribe you will get my email) once your account is set up with BelforFX and you have made your deposit and I can sort out this Robot for you.

Just to give you an idea of what it can do this is a test from Meta Trader 4 using a $200 account. Click Here for the test results so far. Note that the last trade is “stopped” so is losing but could be a winner if it was allowed to play out.