Monday, 29 August 2011

Is It Wise To Build Custom Automated Forex Trading Software?

It seems like people are jumping on board with a very radical solution to their trading woes by building their own automated Forex trading software programs! If you're considering whether it's a wise move to try to build your own automated currency trading system, there are a few things that you should consider before you take the plunge. Here are a few of the main considerations you should take on board before committing yourself to any serious development project.
What's Involved In Building Your Own Automated Forex Trading Software Program
I've personally developed dozens of profitable and not so profitable automated Forex trading software programs, so I daresay I know a thing or two about the entire process. If you think it's just a matter of throwing a few indicators together and saying "buy when X" and "sell when Y", then you're very much mistaken. In fact, you've probably heard from a couple of "gurus" that you should keep combining different indicators and backtesting each unique blend until you find a winning formula.
Well, the problem with that approach is, that ultimately you're going to find a winning combination that would have worked magically in the past, but will it work again in the future? You can never know for sure, after all people do win the lottery every week, and who's to say that your automated Forex trading software program hasn't stumbled on an extremely lucky combination that would have made you millions trading "past data"? That's the flaw with testing random combinations, and I can tell you from experience that these systems don't last more than a week in real trading.
So Is It A Good Idea To Build Your Own Automated Forex Trading Software Program?
You might be surprised, because I do actually think that it's a good idea for people to build their own program... but only if they have a lot of experience trading and are wiling to dedicate their time learning how to develop that prior knowledge into a working trading system. That's because an automated program will allow you to free yourself from actually having to do the trading, and eliminate your emotion from the process as well. That said, if you're new to the markets and don't have much experience trading then it's a really bad idea. That's because you don't really have any experience or solid knowledge in either skill sets for developing a profitable automated Forex trading software program, and therefore you should give this route a miss.
Be sure that you know the facts about automated Forex trading before you do anything else! Everything you need to know about making a profit with automated Forex trading software can be found on my website.
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