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Trading to make money on Autopilot

Discussion in 'Making Money' started by xenter, Feb 6, 2009.

  1. xenter

    xenter Regular Member

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    I've noticed quite a few Forex EAs downloads and was wondering if you guys are aware of collective2dotcom. It's a 3rd party website that tracks a trading system's performance. Your account can be auto traded through the systems (stocks, forex, options, futures.)

    The biggest thing to figure out of course is how do you plan on hedging against your risks!

    Hmmmmm..... :33:
     
  2. mike330

    mike330 Regular Member

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    Make sure you understand the draw downs with these systems. It's easy to say you can take a 30% loss but when real money is involved, you maybe tempted to pull the plug before the system can make money for you.
     
  3. jarhead

    jarhead Junior Member

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    iv'e heard of a Forex Auto Trader. Not to sure about any feedback.
    Would be cool to have one
     
  4. knowledgeblast

    knowledgeblast Jr. VIP Jr. VIP Premium Member

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    Sounds good if my nerves could take it. I feel you really should do tons of research before jumping on board......just my 2 cents.
     
  5. toyo

    toyo BANNED BANNED

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    forex movement is random most of the time, and there is no way any system can actually bring ''profits''. If you go into the green, its pretty much luck, and it wouldn't be long before everything turns red.

    the only way you can make money in forex is by learning the game, and take very small risk. if you're planning to run your money on autopilot, might as well you just credit it into my paypal, at least I will say thanks.
     
  6. milligan

    milligan Junior Member

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    Systems trading is very difficult. Most systems for sale are truly over optimized garbage. Their stats look great as they are highly optimized on past data. The better, longer lasting, systems are quite often backtested on lots of data with very few variables. The more variables, the more data is needed to assess the systems chances of making a long term profit.

    Forex seems to sell big as it offers big rewards. The only problem is the risk can be quite large also. The systems I have seen are quite often just rehashed indicators thrown together using heavy data mining to come up with a great set of variables. Then you can throw together a sales page with great stats and sell a heap before it inevitably fails.

    I am not saying that systems cant work but the more highly optimized a system is using backtesting the shorter its profitable life time will be (if at all).

    I think you can systemize a lot of trading but long term success comes down to one thing: You have to know when to follow the rules and when to break them. That, IMO, will separate long term profitable traders from the losers. The real lies in the "knowing" part. You can learn the rest fairly easily but only experience will teach you to "know"
     
  7. xenter

    xenter Regular Member

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    does anyone know of any websites where you can find reputable traders that can manage an account for you then? It could be stocks, fx, options, futures
     
  8. jammie

    jammie Jr. VIP Jr. VIP Premium Member

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    Never trust them.

    Think of it this way. A system will either win or lose. So they take it to the extreme for huge profit, or a huge loss.

    Then, they make the exact opposite system, so if one makes a huge loss, the other seems to be performing *really* well, making massive gains, when infact, it's just because it took the exact opposite stance to another which was doing very badly.

    That way, they'll always have a top performing EA.

    If you were a company, you'd do that too.

    Clever 'eh!

    My advice is stay out the markets for another few months, then learn it the hard way. Slap down $500 and play with a micro, then see how you do. Learn and refine, and eventually you'll start to break even and maybe even show a profit. Once you do constantly, you can start to build your account and have access to easy money for the rest of your life. Once you can trade, you'll never forget it!

    PS; xenter, alot of account managers get paid by the trade, not by profit, so you'll end up paying the a commission even if you losee your account. Those who work by profit usually just make alot of trades and pocket the spread themselves (does happen in some companies, unfortunately).

    However, if you find a trusting company, go for it, but i wouldn't hold my breath on it!
     
    Last edited: Feb 6, 2009
  9. xenter

    xenter Regular Member

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    jammie,

    I know what u mean there r a lot of trading bastards out there. I am aware of them. I'm also aware that I don't want to learn how to trade because it's going to be a long and painful process with no kind of guarantees. Instead I want to focus on how to do your own due diligence on finding a very reputable 3rd party that is willing to profit share with you. We always talk about automation and outsource. This is the same thing. The challenge here is to find a good entity to do the outsourcing. And you know...scalability is NO problem in this game.
     
  10. jammie

    jammie Jr. VIP Jr. VIP Premium Member

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    scalibility is the reason why i used to trade.

    But the problem is the managers get told what to trade usually by an analyst. They usually have no clue about why they're trading etc. and they can quite often lose alot of your money.

    Nothing like waking up to see you're down $800! Guess for other people it's alot worse though (i.e. ones with tens of thousands invested).

    Guess i had my fingers burnt by a very reputable company (had a managed account with FXCM, there stats weren't too bad before this happened 2 the economy). So from then i've always just traded myself.

    However, trading myself gives me more confidence, i don't worry as much and it's much more profitable. It's the same game as here; find a method and stick to it. But since you can see the money infront of you going up and down, it's alot harder for most people i guess.

    Good luck though, i hope you do well!

    Just ask yourself this; if they could make a serious ammount of money, why is the account manager working for a living, rather than just trading his system and living the high life?

    Theres a quote that says "A stock broker is called a broker, 'cos he's broker than you!" and the same applies to this.