Posted June 12th, 2010 by sharkdancer
With falling shares and low returns on investments, it’s becoming increasingly difficult to find a safe place to make small investments. Many people have taken this opportunity to make enquires about the Forex market. The Forex market is the most liquid market in the world and trades 24 hours a day and 7 days a week turning over a massive $3 dollars a day.
Now the one problem many first timers found was that over time and in the long run approximately 90% of traders lose money in Forex. The reason for this extremely high number is due to the time and energy manually trading forex takes. There is a huge learning curve that needs to be climbed before a trader can take to the market, not to mention a through examination of psychology and mindset. A lifetimes task in itself.
Fortunately new technology in the form of Forex Robots have come to the rescue. Forex Robots have been around for a relatively short while with new and more advanced models coming out onto the market all the time. They have become so popular that now approximately 25% of all Forex trades are now done by forex robots. The main attraction of a Forex robot is that it allows traders to leave their Expert Advisors to run on autopilot so saving valuable time in not having to sit in front of a screen all day. The other big benefit is that Robots don’t have emotions and therefore don’t make the fear or greed based errors that human traders do.
As with all technology the older Forex Robots were very inconsistent. They would do very well for a while and then would go into periods of losing money. If Forex Robots are so clever why does this happen? The answer is really simple. The older Forex robot models had set coding which only allowed them to understand a limited range of market movement. With new advances in technology forex robots are now programmed with their own intelligence allowing them to adjust to changes in the market.
Let’s explain in a little more detail. There are a variety of price patterns that can occur for a currency pair. Due to global macro economic variables a currency pair might show trending pattern where one side of a currency pair gains significant strength vs. it’s opposite e.g. the Yen strengthening against the British pound for a long period from July 2008 to January 2009. This is a trending market and a Forex Robot designed for a trending GBPJPY would have shown exceptional profits during this period. However the run did not last. It never does. The GBPJPY pair came into balance at the end of January 2009 when the currency moves into a more sideways pattern. This is known as a ranging market. The trending Forex Robots that did so well for 6 month earlier would have started to lose money. It would expect the trend to continue and would make false trades. The longer the market traded sideways the more money would be lost.
This is where the new adaptive Forex Robots take over. IvyBot is the first of these robots recently launched onto the market. The developers of IvyBot have coded this forex robot to react to changes within the market. Allowing the forex traders who use them to profit for longer. Developers are also constantly updating the forex robot for changes as they happen within the market the beauty of that is all updates are passed on free to the consumer. The program has a 96% accuracy rating.
Why should you pick IvyBot above other Robots?
IvyBot uses the latest multi market adapting technology
· Designed by Forex Experts and properly tested over a long time period
· Superior profitability
· 60 day money back guarantee
Posted June 9th, 2010 by sharkdancer
Many traders want a forex robot that works and enclosed you will find one that is and it won’t cost you a dollar, yet it will out perform over 95% of the robots sold online. Here it is take a look.
Mechanical forex trading systems sold tend to destroy accounts. This is because the track record the forex trader buys is never real, it’s a paper exercise done in hindsight and normally carries this warning:
“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.
The system has never made real money and paper money means nothing, as you can’t spend that in the supermarket.
These robots are curve fitted i.e. the rules are bent to fit the data and produce a profit.
Data never replicates itself in the exact sequence again and the system takes a bath.
Now were going to look at a simple forex trading system which cannot be curve fitted by its very nature (as it’s only one rule) and has been traded by savvy traders for over 20 years and continually produces great long term profits.
It works on any trending market and of course, currencies are one of the best markets for trends.
Here is the system:
Buy a new 4 week high and sell a new 4 week market low.
That’s it. Very simple and it’s very profitable as it’s based on 2 core foundations that will never change:
1. Big forex trends last a long time
2. Breakouts are where most new trends start from
Don’t assume because its simple it doesn’t make big gains it does.
You can easily test it and see.
Simple forex trading systems always work best, because they are very robust with fewer elements to break than complicated ones.
This is easily proven by looking at all the advances we have seen in forecasting in the last 20 years – we have quicker prices, more powerful computers (your desk top computer has more processing power than the computer that landed man on the moon!) and more complex theories – but has this changed the success ratio in trading?
Not at all.
95% still lose and 5% win and this will always be the case.
Does the system have a downside?
Yes it does when forex markets trend sideways it will get chopped and incur drawdown.
Here you can alter the exit and exit on a 1 or 2 week stop, then go flat and wait for the next 4 week trading signal to get you back in.
Not many traders will bother with this system though and it’s not because it doesn’t make money, it’s because they perceive complexity helps them.
After all, a neural network or system based on chaos theory sounds like it should make money and makes them feel they have technology on their side – but the above system will beat most of these more complex systems hands down.
I once made the mistake of buying a system off an ex NASA engineer and felt it would help the result it wiped my equity out in two weeks!
The 4 Week Rule on the other hand, I have used for 20 odd years and its done great – some periods of drawdown (but all systems have them) and a thumping profit.
To run this system you need tremendous discipline, as it’s not fussy about market timing and it’s brutally mechanical but if you have discipline then it will work a treat.
So before you buy a forex robot which hasn’t been proven try this one – it’s been used by some of the world’s top traders, is easy to understand apply and can lead you to currency trading success.
Check it out and keep in mind it won’t cost you anything to test and it you will surprised at how much money it can make if executed with discipline and with an eye on long term performance.
Posted June 9th, 2010 by sharkdancer
There are lots of mechanical forex robots you can choose from and most of the sold ones lose yet, you can get one which is free and will out perform them and its free and even better it’s simple to understand and use so you can soon be seeking currency trading success with it…
The forex robot we are going to look at here is a simple system that has been around for over 20 years and has been the basis of many a successful trading system – its extremely simple, yet continually makes money year, after year and is based on timeless logic
Background
The system was developed to trade commodities in the late seventies by trading legend Richard Donchian, who is considered the grandfather of modern trend following and was developed to trade commodity markets. It can in fact be used on any trending market and forex markets, with there excellent trends make it an ideal one to use this system on.
The Rule
This system only has one basic trading rule so here it is:
Close any short positions and go long whenever the price exceeds the highs of the previous 4 calendar weeks and reverse again and close any long positions and go short when the price falls below the lows of the previous 4 weeks. This system maintains a position in the market all the time and is a SAR (stop and reverse) system.
Well you can’t get much simpler than that – but don’t be deceived by its simplicity, it works and here’s why:
Why it Works
Currencies trend longer term and most of the big trends start from breakouts. The above is a long term trend following system and will put you on the side of every major trend.
Do not be deceived by the fact its simple – judge it on the basis of how much money it makes
It continually makes great gains and its simplicity is part of its power.
All the best forex trading systems are simple, as they have fewer elements to break in the real world of trading.
There is no link between complexity and currency trading success – simple systems work and you can easily find out by testing it.
What is the Downside?
All currency trading systems have them and this one is no exception. When markets don’t trend of course, you will take losses but you can smooth the equity curve by adding a filter – simply exit on a 1 or 2 week stop and remain flat until the next 4 week signal. You can also use a moving average if you wish.
Which ever route you take the system will make money it just depends on your drawdown tolerance.
Why it Works and most traders won’t Use it
Many traders despite the evidence it makes money, will dismiss it as too simple ( you don’t even need a computer program to calculate it) and many still feel “safer” using a more complicated system, even thought this one will beat almost all forex robots sold. Sure, there more complex and come with a flash presentation but check there track records – there just simulations in the past and have never made real money – this one has and will continue to make money.
Secondly, its brutal in its trading signals – you have to take them as they are no subjectivity!
It’s not fussy about perfect market timing and although you can never buy bottoms and tops, traders still try and fail. You need tremendous discipline to execute it.
Thirdly, it doesn’t trade often and that’s not a problem, if you want to do other things with your time and are trading to make money not excitement but many traders equate (wrongly) trading frequency with success.
Finally, It’s not flavor of the month and is 30 years old. Traders today, like to use chaos theory, artificial intelligence, neural networks and all sorts of theories (that don’t work as well) but they sound good! Put it this way, if technology helped you win at forex trading, the ratio of winners would be much higher today than 50 years ago and its not – it’s the same. So complexity doesn’t help you win – PERIOD.
Final words
This system has made traders millions, has been used by some of the top traders of all time and if you want currency trading success, this forex robot works and that’s the test of any trading system. Take a look at it and you maybe glad you did.
Posted June 2nd, 2010 by sharkdancer
Most forex robots lose there are some that are good but to say they are better than humans is simplistic there not for two reasons…
There are two limitations which you need to be aware of when using even a good robot.
1. Robots can only do tasks programmed into them by Humans
2. Markets do NOT move to a mathematical formula so of course they have limitations
Humans are capable of independent thought and that is why most of the major top trading houses in the world still use human dealers and computer trading systems combined. The human brain is simply the most powerful computer on the planet it may not have processing speed but in terms of different calculations it can make its way ahead of any computer.
Also consider this.
In the last 50 years the same number of traders lose as they did in yester year – that’s 95% and this is despite the awesome processing speed of computers. Your PC On your desk, is far more powerful than the computer which put man on the moon.
While processing power is a help, the markets are not mathematical and don’t move to a scientific theory (if they did we would all know the answer in advance and there would be no market) so if they don’t move to science, computers can only do so much.
Why most forex Robots lose
The ones that are sold and appear to have fantastic track records, have actually have never been traded in the real world. They have simply been back tested and the rules bent to fit the data ( this is known as curve fitting) and while they work on the segment of data tested, this exact price history never repeats again and the system breaks in real time trading.
Check most of the sold track records on robots and there is NEVER a real track record and they never work.
Are there any good forex robots?
Yes but you must understand they have limitations and are not perfect – they will have periods of losses that last weeks but you can find ones that make money and that’s the aim of forex trading.
The best forex trading systems tend to be simple and robust. The forex markets will soon break a complicated system.
Many traders like the idea of a forex robot working away and them making no effort, we all do but remember, you have to have the discipline to apply it and that means knowing how and why it works and sticking with it, through periods of losses, until you hit a home run.
To say that computers are better than humans at trading is incorrect, as a computer is simply a reflection of the programmer and while they can make money, anyone who thinks that building ever more complex computer programs will make money are wrong.
Computers have there place in trading – but just like humans they have limitations. Both a human and a forex robot can make money and neither is necessarily better at trading than the other.
Posted May 31st, 2010 by sharkdancer
Slowly and gradually robots seem to be taking over many of the functions that humans perform. Though it may seem like machines rendering man redundant, in perhaps all cases these replacements are for the better, such as in robot assisted surgeries.
Surgical robots have today made remote, minimally invasive, and unmanned surgeries possible. In addition they have enabled better precision with surgical instruments e.g. scissors, miniaturization, smaller incisions, decreased blood loss, less pain, and quicker healing. As a result have led to better patient outcomes.
Aside from these advantages of robot-assisted surgeries, the following examples of their superiority are worth mentioning.
Better for Heavy Women – Uterine cancer is a medical condition with which about a 100 women are diagnosed each day in the USA. Once diagnosed with the disease, many patients are worried about how the treatment, which often includes surgery, would affect their lives and family. However, it seems that robotic surgery may be a better option than laparoscopic surgery for uterine cancer. Recently the journal Gynecologic Oncology showed that patients undergoing robot assisted surgery, lost 2-and-a-half times less blood, were 6 times less likely to need transfusions, and that the time of their stay in hospitals was halved.
Lower risk of a Gastric Bypass complication – Gastrointestinal leak is a rare but serious complication arising out of gastric by-pass – a weight loss surgical procedure. Scientists at the University of Texas Health Science Center, recently conducted a study comparing the conventional laparoscopic Roux-en-Y gastric bypass and a robot assisted operation, and found that while none of the robot assisted surgery group suffered a gastrointestinal leak, some patients from the conventional laparoscopy group did.
Additionally, robotic surgery has also been associated with improved survival rates for prostate cancer patients, with effective treatment of urothelial cancer of the kidney, and more.
All in all, robots with surgical instruments in their hands have a lot to offer to the field of surgery, and that robot-assisted surgery is indeed better in many cases.