Forex Trading and Automated Trading

I have been doing a lot of research lately. Trying to get my head into automated trading. There are times when I just want to get out of the market because it really takes a toll on your mental health. There are times when you feel you’re invincible and can never be wrong.

This rollercoaster emotion in forex trading is what I want to remove. So I’m doing a research on how to get into automated trading. I mean, the system that I’m using is good as it is. Now let’s see if we can teach a computer to trade for me and thus free me from being tied to the computer.

Why would I want to do automated trading?

Here are some pros that I can think of.

PROS:

  • Computers have no emotions
  • Computers can respond quickly and react quickly to market movement. (also this may depend on your internet connection as well)
  • Given enough technical skill in programming, you can teach a computer how to trade according to your own rules for trading.
  • You can give and share the program to anyone to help them trade.
  • Complete freedom from the market

CONS:

  • Needs technical knowledge in programming
  • Might become unpredictable with unseen bugs and may lose you a lot of money in the process

As you can see, there are more pros than cons that I could think of. And the fact that you’ll be absolutely free from the screen time is a good enough tradeoff for me.

I’ve been reading some books on the subject and it has been interesting so far.

  • Allan Jerome Rapales

    HI there! I’m also interested on having an automated trading system (something like an EA or something that could do automatic trades) so that it will further give you free time to do anything else aside from trading. Since I’m also a newbie on MT4 programming (since I use MT4 platform on trading), I’m not yet well-versed on creating such system. If you could discover regarding this topic, please share it with me as well. My email add is aj.rapales@yahoo.comm.ph and my skype ID is ajrapales. Looking forward to your response. Thanks!

  • ForexPhil

    I’ll be posting my findings here on the blog. Oh since I’m using linux / mac OS, I might not use MT4 for the autotrading system. I’ll give more details in the future. That’s it for now.

  • geng

    I am currently learning forex right now and I am interested in automating it. I am a software engineer and I want to develop algorithms that automates my trading moves (that is, if I got better at it :D)

    Maybe we can work something out. I already checked oanda’s API and damn! there’s a fee on using their API — $600/month

    Tell me. Hope you can see my email address

    Great job putting up this site by the way

  • ForexPhil

    Hi geng,

    Thank you for taking the time to comment. Its good to see a fellow engineer getting into finance. I’m also in the same field as you which is an advantage I know. Well, used to be after I quit my day job. But up to this point I have been manually trading just so I could better understand and test my trading system.

    I appreciate the help. But I would like to do this on my own. I think, if the platform has Metatrader, you can get started into automated trading, because Metatrader has their own programming language you can use to automate the buying and selling action.