Best Automated Forex Trader? Maybe.
In this short article, we will do our best to introduce first couple of key features of the best automated forex trader we have managed to make for our users in 7 years.
Most traders have certainly experienced extremely volatile markets reminding pretty bad storm.
Such volatility can be caused by key market data releases, speeches of central bankers, changes in national interest rate policy (i.e. SNB’s unexpected PEG cancellation); furthermore, by very unfortunate catastrophes such as 2011 earthquake with consequent tsunami in Japan. Such occurrence often kicks many traders out of the market, destroys their trading accounts liquidity and sometimes also brokerage houses and big investment firms.
Automated trading systems are no exemption from such happening. The same as any trader might be caught by devastating market moves, so can suffer any automated trading software. Ideally, these robots are able to cope with extreme market volatility upwards or downwards with keeping a trading account safe in terms of its liquidity.
Therefore, we are here to introduce Automated Forex Trader (AFT), which can handle also above described situations quite well. The most recent version of this automated trading software was created with great focus at risks we were previously facing. Risky market occurrence such as hundreds or even thousands pips market moves. These were threatening our trading account liquidity creating drawdowns reaching sometimes 20-30% and higher levels. Because AFT’s main focus is at market corrections, larger trends with no corrections could definitely mean a threat to one’s trading account.
Drawdown on leash
Obviously, we had to work this out! We decided to make it more safe, with opening as few trading positions as possible and leave the market move to ride its profitability level. Indeed, it took a while to make it all work properly according to our preferences. At the same time, it was important keep the drawdown as low as possible at any time. The goal is to keep its profit to average in the range from 2 to 5% per month, while the system would not allow a trader to go over 5% drawdown per currency pair. Thus, as an example, ending up my fiscal-trading year with average and conservative-focused profits at 36% and maximal drawdown of 15% with 3 currency pairs traded, it should still make me a solid profit (21%). This would be case if I decided to close all positions at that particular moment. Knowing how AFT works in great details, I would not do that. Nevertheless, my example was supposed to make it clearer for anyone who would like to do so.
What does it actually do?
AFT begins with opening trading positions both Buy and Sell at the very same volume. If the market goes one or another direction, AFT automatically enters into another trade only when predetermined top/bottom has been created and turn in direction looks promising. At this point, profitable position is being closed right here, while AFT continues trading its cycles further.
What if the market keeps going hundreds of points one way with no correction?
To handle such situation AFT includes safe mode option. It is activated automatically as soon as pre-defined floating loss limit of 5% per currency pair is reached. Consequently, further drawdown is prevented and no more hedge positions would be opened. Once the situation gets back to normal, safe mode is automatically turned off and trading algorithm keeps operating as before in order to finish its cycle. Nevertheless, past 12 months trading with the latest AFT version has shown there was no safe mode activation if a trader applied to most conservative trading strategy. Trading with Automated Forex Trader will turn your trading into profits and keep your account liquidity high.
To sum up this short introduction, we have created automated forex trading machine which works well enough to satisfy our own investment goals. Can we consider it the best automated forex trader we have created? Definitely yes! It has been developed in over past 7 years to reach this kind of performance. We are happy to share it. Next week, we will keep introducing AFT algorhitmic trading solution and we’ll get to some more details on its functionality.
Should you have any questions, feel free to contact us at contact [at] automatedforextrader [dot] net or via our contact form.
Take time to get familiar with Risk Warning associated with use of automated trading systems.