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Getting good results is possible for each trading year. But a good or bad result is defined by the circumstances. For automated trading it is necessary to make decisions. The problem with most decisions is that you most often don’t know how your life would have been if you had decided otherwise.

Depending on the broker you use, a cent account can be traded with a lot less capital than you would need otherwise. We use moving averages and trading to find out if the price is above or below what we consider to be the average price. Building a system that can survive outstanding situations requires that you know that they exist and how bad it can get. Once a broker I used declared insolvency in January 2015. That was just two or three days after the financial earthquake that was caused by the Swiss franc. MetaTrader comes with predefined methods for a lot of useful things. One of these things is the ability to create an automated screenshot.

Trading automation is only the last missing puzzle piece you need if you want the valuable answer to the question: what if? You maybe don’t know if you should close a position? Or if it would be better to hope that everything finally will come to a good result? From time to time I get a question like why should I trade what you trade? Well, maybe you shouldn’t do that. Today, I am still very happy that I was smart enough to start with a demo account. So it was no real money.

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Some people survive because they know how to deal with risk. For any setting that you want to prove to be an advantage, do the opposite to also prove the disadvantage. How would it change or improve the end result on a yearly basis? If we change that take profit goal, you can find out with a simple strategy test. You might think that the market is going up or down and it does the exact opposite of what you expected.

What kind of trader are you? There are some people who are willing to trade whatever somebody recommends. I just do currency pair trading, also known as forex trading. I don’t trade stocks and I don’t trade options or cryptocurrencies. Traders get paid for risk. They buy and sell something to make a profit. Would you be satisfied with just two trades in a whole year? Or let’s use the opposite example and you do 1000 trades a day. I once did a research and I found out that some of the so called professionals are actually actors that you could hire for $5 on a website. We need to work. We drive around, buy stuff and spend our time with lawn mowing fixing things.

Or we are forced to do paperwork. Even if math is not your thing, maybe you wouldn’t expect to be lucky enough to survive when your strategy is too risky. Going with a low risk setting will also decrease the probability to make profits. But I think it is a better idea to protect the capital. Do you think this trading thing is too complicated for you? I know that there was a time when things like writing, reading or driving a car seemed to be a complicated thing. Errors are not avoidable. But I learned from my errors and now I avoid bad brokers.

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Have you ever heard why somebody at the other side of the world bought or sold something? Just because you add more indicators to your chart, you will not get a more dependable entry signal. All my systems are probability based and I have traded the Brexit voting in 2016, the Euro US dollar crisis and the Swiss Franc disaster in 2015. There are people who believe everything and there are also traders who need to analyze everything, even the smallest detail. That is the other end of the scale.

Unpleasant negative feelings can influence us strongly. To survive good and bad weather you need a good system to adjust your sail because you can’t adjust the wind. I have found one thing that is very significant and a great advantage. If you only do one thing, you should really do this process with position based stop losses. Because you will find that your stop loss settings have the biggest impact on your trading results. From time to time similar currency pairs behave similar. But that can also be a problem.

A data gap might cause your system to decide that it is time to close all your trades. Whenever I manually tried to do the opposite of what I thought was necessary, the price did the opposite of the opposite. Most people will lose all their money within six months or less. The reason is simple, they do exactly what does not work. It is easy to get started. You just need to decide to do it. In January 2015 the forex market went crazy. I have never seen bigger candles on my charts before. You might notice a change of the chart candle sizes. Those visual representations are not fixed.

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You might have heard that it is a good idea to let your profits run and keep your losses short. This is a very simple thing to understand, but in reality it is very hard to do. Moods are human, but I think moods are a big problem when it comes to trading.

Most people don’t even even have done a few hundred trades. They have an opinion that might be based on 17 trades or so. One of the main problems with trading that you will have is the fact that a strategy test needs to be defined with an end date. We have all certainly seen an optical illusion. A good example would be the heat flicker over the asphalt of a heated street on a hot day. Do you consider yourself to be a reasonable person? I do, at least most of the time. My current statistics solution is still not as good as it could be because from time to time the connection gets lost or the automated updates do not work. Trading should be about numbers and results, not about feelings.

Complex decisions can be made, but this is only possible if one is able to make such complex calculations. If I would show you a profit of $1,000, how much risk would you be willing to accept to make that profit? So what do you need to do to protect your trading system? Well, you need to build your trading ship in a way that you are able to face all weather conditions, not only the warm summer days with a light breeze. The strategy tester allows you to test your strategy with historical data to find out how your automated system would have performed in the past. Defined automated rules. That is why it is called a system. Emotional trading is what I call hope trading and that didn’t work very well for most of us. Or did it?

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My main goal is to keep my money. If that works, I would also like to make enough profit to justify the risk and cover the costs. It is not so important if your current result is good or bad. It is more important that you can repeat what you do and produce consistent results. My former broker simply decided to forbid to trade certain forex pairs and told his customers that this was a security restriction in their own interest.

Most people think that the right entry signal is the most important thing that will make the difference between losses and profit. If you are able to do the right things, you might like the results but you also need to use the system in the right context.

Do you think trading is exciting? For me, good trading is dead boring. I am not excited because I have learned something. Some people ask themselves should I use a pre coded system and learn how to improve that? What do you think? A two bold profit goal could ruin the whole system. How do I know? Because I have tested it. My first profitable bollinger bands system was the one thing that convinced me that all this algo trading stuff really is worth the time.

When I started to deal with automated trading, I had to spend lots of time with the classic fundamentals. Find out what works for you before you decide to risk all you money because somebody told you what to do. The risk setting for this system influences the number of positions that might be traded at the same time on the same chart. If something works exceptionally well, you notice the fact because you are used to what you consider to be average, some things just don’t work very well. Hope trading is one of these things.

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Your computer can do the trading for you without any emotional problems. A split test makes it possible to find out if something is really better than other solutions, because after a while you might get confused otherwise. Even when I did the the opposite of what I wanted to do, it also was a loss most of the time. So I started to learn automated trading. There is actually a way to gain real trading experience with thousands of trades, but in a fraction of the time you would need otherwise.

And trading errors can become very costly. But as a human, you get tired. You get a headache from time to time and sometimes you might get sick or bored. If you know how to use the two fundamental trading laws, you can greatly improve your odds for better trading results. Using several small accounts doesn’t mean that you can’t trade big accounts, but it means that my trading capital is not deposited on one broker account. Finding the right trading risk setting is the main challenge for your system. You don’t need to learn all the possible functions that our programming solution provides. In fact, it is only a tiny fraction necessary to get results. So that will save you a lot of time. Actually, there is nothing that will work all the time because no indicator is able to predict the future based on past events. I would suggest to start with forex trading.

You can always decide to try something else later at some point in time. I started to build some small and simple examples with just a few lines of code. Those examples could do only one thing, like calculating the profit or the loss for a trading account. If you improve weak things, you could probably expect mediocre results for a lot of work. But if you improve the things that already are good, you could expect excellent results with a lot less effort. Do you know how your trading system works? If not, you should probably stop trading it. I do know my own results. In real trading they are promising. But if you can expect the same results, that depends on your account type, leverage, trading costs and so on. I always encourage my course members to start with a demo account and trade that for at least three months afterwards. The next best thing would be to use a socalled cent account.

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From what I have learned, it is better to trade more, but smaller positions. But I am risk averse and I trade longterm systems. Every trader has his preferences and things he doesn’t like. Often these things are a result of past experiences. I often wish that trading capital would be a separate kind of money. But unfortunately money is actually the resource that is used to pay for almost everything. Do you think a cent account is helpful to improve your results? Yes.

That will make it easy to avoid manipulations. Because now you are not a victim of your own fear. If you still want to pay for a solution that promises to make you rich, there are a few questions you could ask yourself. For example, is the vendor using the product? We all hope that we will not see another crisis in the near future. But it is always a good idea to backtest outstanding situations and learn from those results. Other people like to trade huge position sizes. They like to say that they have doubled their account in two weeks or so. Too risky for me. Think of a sailboat. What do you need to get to your destination? Harbor? Wind. For traders, the changing price is like that wind.

If you know that something works, but you only talk about that and want to do that, nothing will change. It is possible to find the things that do work if you do the necessary testing. In most cases you will find that common sense does not help. We humans have a problem with absolute and relative results. For trading, a price movement is like wind for sailboat. What does happen when a sailboat has no wind? The boat will not move. Correct. And what will happen in a hurricane? The boat might sink.

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If you have a huge amount of data and a computer that is able to define what average and common price movements look like, you can create a system that is able to significantly increase your probabilities.

Today all I have to do is to look at my statistics from time to time and I need to check if my systems are running about once or twice a week.

Most indicators have been invented when average people had to trade on a daily chart. But today your computer is able to do it in a few seconds. Humans decide based on emotions because we are not so good at calculating to make a rational decision. An expert advisor can get results without much human effort because your expert advisor will trade whatever you tell him without you sitting in front of the screen. Most people trade two big position sizes on two big accounts.

A small change like a floating type variable for risk settings can make such a big impact for the results.

Problems are unavoidable. No matter what you do, at some point you will make a mistake. For a micro lot trade, I allocate at least $200 of capital. So with an account size of $1,000, I would only allow five open positions. At the same time, demo accounts are free.

You can get one within the next five minutes and it is the most effective thing to avoid big losses in the future.

Are you happy with the profits on your account? Are you happy when one or two trades are better than expected for discretionary traders, it will take them years to come up with a significant number like say 5000 to 10,000 trades.

Today I can build better algo trading systems. Actually, it is not that hard to do if you know what works and why it works.

I think that nonautomated trading goes against human nature. You might to start to do it because of the excitement.

When I started out with algorithmic trading, my biggest problem was to create a system that could produce profits on a consistent basis. Computers have been used to create the market. They send you the price data and that data is recalculated to draw it on your own computer screen. So why do you think you should trade it manually? Sadly, most traders want to go all in and that is one of the reasons why most people fail.

Do you know your expectancy? In Germany you can expect to wear just a T shirt in the summer, but in the winter you would expect to wear warm clothes.

Trading manually mistakes seem to be unavoidable. I simply was unable to improve my results. Charts are drawn to represent numbers and they do it on a relative, not on an absolute basis. If you look at a MetaTrader chart, you will see that the price never reaches the upper or lower border of the chart. I think most people would be able to come up with a good trading recipe if they decided to invest the time, money and effort it takes to achieve the desired result.

One of my systems went out of business on January 16, 2015, the same day when my former British broker declared bankruptcy.

A loss hurts, so people close a position and watch the price move into their direction immediately afterwards. Has that happened to you?

In January 2015, the Swiss National Bank decided to give up the fixed exchange rate with the euro. That caused one of the biggest forex earthquakes in history.

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We have seen the Brexit votum in 2016. That was when I had to learn that brokers can simply change their rules in the middle of the game and forbid to trade certain currency pairs. From time to time things simply do not work as desired. There are some common insights that should work, but forex charts don’t care about common sense.

I remember how it felt to be a discretionary trader when I made my first trading experiences. I was constantly in doubt and fear to lose money by making stupid mistakes. When you are trading on your live account, you would probably not close your account just because it is December. Your broker can change the rules in the middle of the game at any given time.

I would like to trade with certainty. I would love to be sure that progress is made. In MetaTrader5 historical data does not need to be imported. It is automatically downloaded when you start a back test for the first time.

It is possible to set up a back test for eight to ten years or so and then leave the room and have lunch with my wife.

It is easy to test an entry signal with an automated system and you wouldn’t even need to invest five minutes to create a reverse entry.

My computer can calculate and trade entry signals in a split second. If I would try to do all the calculation in my head, I wouldn’t even be able to do a back test for a single year or a single currency pair.

Let’s pretend you need brain surgery. Would you accept somebody who watched a few YouTube videos about that topic as your doctor? No, of course not. I would look for a real doctor who is a specialist.

It is possible to trade very small accounts with currencies. Most brokers support currency trading and you don’t have to watch any financial news for something. So I would recommend to get started with that.

There are people who expect to make steady and regular profits on a monthly basis, like a paycheck. And I used to think that way too. But actually most things do not work that way.

We see what works. We are adults and we are smart enough, right? Wrong. Trading is something that is made to especially work against human nature.

I don’t believe that any currency will produce a 200% raise because of an innovative management like some people do with Tesla stocks.

Navigation is the ability to keep the course of your ship even when it gets difficult, even when the wind blows against you.

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I know that power outages occur in real trading. I have also network problems from time to time. A lot of people think that the right entry would already be a system, but that is not true. The only way to do a few thousand trades is to use automated trading. I have certain rules and I have found that there are some fundamental laws of successful trading that work all of the time. Learning how to code your own trading system is the most difficult way to do it, as it takes time, money and effort to learn it. But I think it is worth it.

You cannot do proper backtesting as a discretionary trader. There is no way. Only automated trading will give you this new opportunity to gain a lot of real trading knowledge in a fraction of the time. Most people are looking for something that is easy and simple. Well, an automated trading system is what I consider the next best thing to that. We all know that trading is a speculative thing, no matter if you use automated or discretionary trading. How do doctors become doctors? They go to school for years and years and they need to pass exams afterwards.

They need to practice to get better. All indicators are calculated based on the past and they cannot predict the future. The ability to trade ten years in a row is one more reason to use automation, because I never could do that without automated trading. Only if you trust your algorithmic trading system, you will be able to let it run when the next drawdown appears on your chart.

Look at your account balance and your account equity are both going into the right direction. Yes or no? Most people think that backtesting is a tool to find the right kind of entry signal. But actually the more valuable thing is that it will help you to find out how to scale your system to survive financial earthquakes.

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Actually, I have never seen any entry signal that would not produce false buy and sell signals from time to time.

In my opinion, the risk is much smaller with a good automated system because the system will always follow the rules.

I don’t understand why some people people are raving fans for stock A or B. Stocks are something that I wouldn’t trade because stocks belong to companies and companies can declare insolvency.

The good thing is that it is almost no effort to test an idea in a back test.

Actually, I think that learning how to code your own trading system is the best way to do it because it will give you the ability to change and improve your system at any time.

Average weather does not mean that we don’t have cold summer days or warm winter days. But on average a winter day is cold and a summer day is warm.

You can get the necessary experience in a fraction of the time that will be required for discretionary traders.

You can measure results, change one thing and measure the new results again. If your results are better, you might have found an improvement. What do you do when you think that you have found a market advantage? I will go through my testing process to prove or disprove it. The idea is to stick to the trading rules and not to do something stupid.

The idea is to minimize the risk and make a profit.

I am willing to grow with my system and every day without manipulations is a good day in my eyes.

The risk setting is something like the gas pedal in your car. If you drive too fast, you will probably not be able to stay on the road.

Trading data is very valuable because it will make it possible to trust your trading system based on your own results.

Why are you interested in trading? Most people say that it is about the money, but I think excitement is the real motivator for a lot of them. A strategy test is when you compare results for a system set up. For example, you could exchange the MACD entry signal with a Bollinger Bands entry signal and trade the same historical data with all the other settings unmodified.

Wouldn’t it be better to turn off that computer and stop doing things most people on this planet consider to be a waste of time?

If one of the technical indicators would be able to predict the future, why should anybody trade something else?

You need to grow with your account and your system. Therefore, I always encourage the premium course members to start with a low risk. One of my former brokers in the UK went bankrupt in January 2015 and thousands of traders have made big losses.

You can do a back test again and again with the exact same historic data, changing one little thing in the settings each time.

A strategy test is like repeating the past using exactly the same price movements each and every time.

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With an algorithmic trading system, trading works differently. There are no optical signals that need to be processed, but concrete numbers.

Life should be easy, but often it is not. For example, when you have no time to do what you want. We do back tests again and again and again. With an automated system, it is almost effortless to do a few hundred or even thousand trades within a few minutes. The only things that you can change is when you trade, how much you trade and when you close your positions. With automated trading, you can get real insights within a few minutes.

A pilot needs to increase the speed on the runway before the takeoff. But the runway is short. If the speed is too high or if the pilot misses the right moment to get off the ground, the plane might crash into the fence. In my opinion, good automated trading is very boring.

We have seen the Euro go down for several years. That might maybe be a problem for several currency pairs because it looks like a lot of countries are affected.

Whenever the computer notices an entry signal, it can open a position in that direction. In our case, this will only happen if the number of open positions is below the number of allowed positions.

The stop out level for your account type might be the one setting that makes the difference for your own account. Do you know your account details?

How do you know if one version is better than the other one?

If you want to improve your system, then you need to do things in a particular order. Probably it is a better idea to invest the time, money and effort it takes to find out what works and what doesn’t work.

Good trading is based on probabilities, based on two fundamental laws. You can find them on our website just in case you are interested.

I once wanted something that was able to trade 24/7 while I was away. I wanted something that would never get tired or bored and that could do it without breaking the trading rules.

To make an educated decision, you need to know something. You need to know the probability.

Even if the account growth is smaller, a smaller drawdown is often worth it.

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Each price on the chart and each value of an indicator corresponds to a concrete number with which one can carry out mathematical calculations.

It is necessary to define exactly what you want to do. Once that is done, you can test it to get a result.

Trading is an ongoing process, and there is no score. You don’t see any lines for the playing field, so there are no clear boundaries if the ball is inside or outside.

The reverse test is to do the opposite of what you think is working to prove that it really produces a measurable advantage or disadvantage. Most people will only need a few days to find out if they love or hate algorithmic trading.

Nobody loses sleep about a loss of $0.17, but it feels different for $17,000. An algorithmic trading system does not care. It is just going to trade the rules.

Steady and slow growth is actually the very best way to make a profit without much risk. Yes, it may be possible to make a much bigger profit with something that produces bigger drawdowns.

I prefer the equity curve to be as straight as the balance curve, but that doesn’t always work. Brokers offer bonus programs to make you go all in right away.

I believe that early success is what causes most account crashes, because people tend to repeat risky things as long as it works. You need to calculate the number of positions that you want to trade for each currency pair.

I have made some videos about cent accounts, but basically $1,000 will be converted to 100,000 cents when you make a deposit.

If a potential loss is too big, this will probably cost you good night’s sleep.

The expert advisor does its job. It calculates the entry signals, it calculates the position size, and it calculates the number of positions that should be opened. Hope traders want to make as much money as fast and with as little effort as possible.

I liked when people told me that they actually see that I lost some weight. But guess what? I still hate to go on that treadmill, but I know I have to do it twice a week.

Based on results, one can draw conclusions about which decisions promise better results in a similar situation.

I think the main problem is that most traders only see one reality, and that is their own experience.

Your computer doesn’t care. It does not need to feel better or safe. It does not argue with reality. It will produce results based on calculations, not emotions. You might have seen these Windows updates restarting your computer in the middle of the game.

That could cause problems.

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https://robottradingsystem.com When it comes to trading, most people rather want to be right than profitable. They simply refuse to find out what works and what doesn’t work. When it comes to forex trading, you will see that some currency pairs will do well in one year and not so well in other years. Computers are unlike humans. Your PC is totally fine with bits and bytes and you can feed it for hours with that kind of data. I think you would agree that the entry is highly overrated when it comes to profitable systems. What is an equity stop? You could think of a trailing stop on an account basis. Having an automated system has several advantages.

The biggest advantage is the speed. System improvement is always about one thing and that is to get the equity curve as stable as possible. You need to find a way to deal with outages problems and interruptions. There are years where you only make a small profit. Maybe just to cover your trading costs. Bad things can happen and that is why you always see the warning disclaimers on your broker’s website. The trick is to trade something where those losses are not very likely. Imagine you have a system up and running and you are a trend follower. Wouldn’t you like to know how much better your system is? An algorithmic trading system will never do the emotional stuff and that makes it the better trader.

All you have to do to improve your results is to just do the right things. Not talk about it, not understand it or think that you could or should do it. I think that one of the hardest things is to stick to your rules, even if nothing is working as you want it to work. I wanted to find out why some currency pairs work well and others don’t. And I tried to improve the results for the ones with the bad results. Today I don’t do that anymore. There is a way to reduce your risk.

It is called cent account. So what is a cent account? A cent account is something that makes it possible to trade with a lot less real capital. Yes, it takes some time to do all the testing, but I think in the end it is worth every minute. You can trade a trend or you can trade a breakout. Would you think that a $100,000 drawdown is okay, or is it too much? I think that the financial industry makes a lot of money because their clients often have no idea about the risk that is involved. And I think some of them are doing it by purpose.

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Why do you think they made that loss? Traders often want to be right, but it is not smart to improve something that doesn’t work very well. Have you ever heard that it is a good idea not to put all your eggs in one basket? If you try to trade your feelings, you probably should not consider to trade at all. There is a way to deal with losses, but it is probably not what you want to hear. To avoid pain and fear, the best solution is to start with a small account. The strategy tester has no other choice. It will trade exactly the way you told him. So if you have made a loss on the last day of the back testing period, your strategy tester doesn’t care.

Maybe you could make more money doing something else. Do back testing again and again, with other currency pairs. I would suggest at least ten. It is easy to do that with automated trading. It can be done within a few minutes. Trading heuristics are caused by a too small amount of data and they are very often the cause of big losses. Do you have unrealistic expectations? I think most people have no idea about risk and fear. Trading will definitely make most brokers rich. No doubt about that. The more you trade, the more he makes. I think it is a good idea to find out what financial risk means for you before you start to trade bigger accounts. No need to hurry.

Once you have your profitable trading system up and running, you can always scale up your account at any given time. The Deutsche Bank is one of the biggest financial institutes around. They have all the skills, all the experts and all the technical equipment you can think of. And they lost over $100 million in 2015 because they didn’t know what was coming.

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Your broker will even make money when you lose. That is why he encourages you to trade as much as possible. He knows that most people will lose money. That is just a numbers game. If most traders would make money, he would soon be out of business. You can do strategy tests and trade on a demo account for a few months to find out what works for you. People fall prey for so called heuristics. That is a synonym for abbreviations and making conclusions. Did you know that I never made any profits? As a non automation trader, I think the major reason is that I thought that it is all common sense. Think of a sailboat. What do you need to get to your destination harbor?

For traders, the changing price is like that wind. The price can go into three directions. It can go up, it can go down, and it can move sideways. Do you think that back tests and demo accounts are a waste of time? In that case, your ego might be too big. So just decide what you are going to choose, measure and compare against each other. Sometimes it is hard to find the right risk setting for an algorithmic trading system. Common sense doesn’t help anything. I had to find out that actually a lot of the stuff that is taught doesn’t work. Whenever you want to get up in the middle of the night to check your account, that is a good sign that your account size is too big. Strategies are an attempt to find a market advantage to increase the profits and avoid the losses. From my experience, you need to find something that will work at least as good to justify your investment.

A forex earthquake happens maybe once or twice a year, but it is always unexpected and dangerous. I have had a broker that canceled the account type I traded, and that broker told me that he would close all my open orders within 14 days. No prior warning, just a threat. Someday you will find out that profits are not caused by the right entry. So why do you think is a profit possible with almost every entry you can imagine? If it was all about money management, there should be still a way to find out if a special trade entry system can outperform random entries. In my opinion, profits and losses are unavoidable when you trade.

But if you would like to see a $10,000 profit, you also need to accept the fact that a $10,000 loss is possible. Trade entry strategies are the most discussed topic when it comes to trading. In fact, there are people out there that focus on that part alone. Hoping that something will work is not a good strategy. You might drive the same route each day, but you might have different situations depending on the traffic. In the winter, you maybe need more time to reach your destination. If you google the terms deutsche bank, 2015, Swiss Franc, you will find believable sources that say that one of the biggest banks in Germany lost over $100 million.

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I haven’t made a single real trade myself for years and I exactly know my numbers. What could help you to sleep better?

If your equity suddenly is going downhill, that is the right time to decrease the risk.

Some people ask me why I don’t do individual programming. The reason is simple: I can’t do everything. People buy from people they trust. Here in Germany it is required for companies to have a page with the title Impressum where customers can get the name, the address and the tax information. No disguise here.

You might believe that you should buy when the Bollinger bands indicator produces a signal to buy. If the indicator really gives you an advantage over other indicators, that should be valid for other time spans on the chart, other years, other currency pairs. Take your time and pick your broker wisely. That time is good invested.

Maybe a slightly different value for the trading settings or another position size might make a very big difference.

You need to use a solution, something that will not sink even if you find yourself in a hurricane with high waves and a wind so strong it might shred your sales.

Currency pairs never declare insolvency. They are easy to understand and provide all the movement and liquidity I need.

Your car is a big system that contains subsystems for transmission, brakes and the steering system. In the last years going all in would have been a sure way to lose all your trading money. So a low risk setting is probably a good way to survive the next financial crisis. You can’t avoid crises, so you need a system that you can trust. It takes something that is able to make profits under all market conditions. When you trade a cent account, it is still real money and it is much more scalable.

It is a much better idea to trade on a demo account for at least three months.

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Trading is like cooking. If the temperature is too low, your meal will not be properly cooked. If the temperature is too high, your meal will be burned. We have a STEP BY STEP system that I have used for several years and it works for me and for the premium course members. Getting something that is able to trade according to the rules is actually not so hard. The hard thing is not to interrupt and manipulate it, once the fear starts to dominate your thoughts. Backtesting can show you how your system would have performed during the Brexit period. I always trade whole years because that makes it simple to compare the results for different systems. You can run strategy tests and trade on a demo account for a few weeks or months to find out what works for you. The entry signal is exciting, so people keep talking about it. But from my experience, it is not what will make or break a good algorithmic trading system. One of the things that are really helpful is to try the opposite. For example, you could exchange, buy and sell signals for an automated system and compare the results. If you have ever woken up in the middle of the night, you probably know how your brain can spit out disaster scenarios without any difficulties. Most people use a too high risk right from the beginning and that might cause the account to collapse. Actually, I think with trading it is like with mountain climbing. I know there are people who are able to climb the Mount Everest. I am not one of them. You may sometimes feel like other people are smarter, have better results, know it all. Trading is something that most people do to make a profit. But what would be a good profit? Imagine you can prove or disprove any trading idea you have in minutes. We have a premium course that contains several ways to build a stop loss solution. If you have profits, everything is fine. If you have losses, you try to improve your system. My system can do the trading day and night without ever getting tired, hungry or bored. I don’t know about you, but I need to see a benefit to put in all the effort it takes, even if it is only five minutes. There are people like Ray Dalio who have seen several crisis situations over decades. The good thing is that it is always possible to learn from these situations. Some indicators, like the Bollinger bands indicator are able to work in good times and bad times. It is quite stable. Even if the volatility goes through the ceiling. No trader knows what the price is going to do next. But that doesn’t mean that there are not enough people out there who try to predict it. I think one of the hardest things about trading is to decide what to do and what not to do. Jim Rohn, the mentor of Tony Robbins, once said that eating an apple a day is easy to do. The one thing that convinced me that all this all go trading stuff was really worth the time was that because once you figure it out, you know you can do it again and again. Think of the pedals in your car where you can increase and decrease the speed to adjust the distance to the car in front of you. On your mobile device you can not only see what is going on, you can actually open or close trades, set up notifications and monitor several accounts. Why do backtesting results for demo accounts often look better? One of the reasons is that you have trading costs that might not be included in your backtest results. You might not see swap fees. To make them visible, you need to rightclick into one of the columns in the trading terminal and enable swap fees. No indicator can see what is going to happen. All indicators are visual representations of the past events.

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This is the Envelopes entry for the year 2017 and we are using a risk setting of 10 to trade it in this automated video.

The entry signals are produced, whenever the close price is above the upper or below the lower band.

I consider this risk setting to be high, because you couldn’t expect a system to make a profit with such a high risk for 10 years.

And 10 years are the benchmark for my systems, so on my real account I more often use a much lower risk setting.

But that doesn’t mean, that it isn’t possible to use a higher risk. As always, the right risk setting depends on the account, the trading capital and the person in front of the screen.

This system is one of many possible solutions and I like the fact, that the draw down is not too high for 2017.

You could also fine tune the settings, but for this video I am satisfied with the results.

If you want to find out what you could trade to improve your own results, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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This is the Envelopes Entry with a risk setting of 12 and we are trading the year 2016 in this automated video.

The currency pair that is used, is the Australian against the Canadian Dollar.

With MQL5 systems it is easy to use the strategy tester to do something that is called a backtest and get results for thousands of trades in a few minutes.

So we don’t have to guess if something really works, it is possible to really measure it.

Once you have a result, you can always change one thing and rerun the test.

If you get better results, you go with the new version.

If you get worse results, you try something else.

That improves your results and your chances to make a profit with automated trading.

I don’t know any trader who could do 1753 trades in one or two minutes – actually I don’t think that discretionary traders do more than a handful of trades in a whole month.

For me that is like a navigation system with a map that contains only a handful of streets.

To get good results, you would need something with much more data.

If you are interested to improve your own results based on big data, maybe you want to watch the other trading performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…
Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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Let’s trade the year 2015 in this automated video and we are using the Envelopes entry to do it.

From time to time the markets change and in 2015 you could go with a high risk setting of 12, like in this case.

But there are also years when you need to be much more careful. You never know, until you measure it.

It is possible to use a much lower risk setting, in that case you would also have much lower draw downs in those years.

But when it runs like on rails, you can also increase the risk setting. In this automated backtest, we go with a fixed value, but in real life you would probably look at your account – each and every day.

And you would be able to see, if it is better to increase or maybe even to decrease your default risk setting.

Getting good results is possible for each trading year, but a good or bad result is defined by the circumstances.

For example something like the Brexit votum could totally change the game for you and your system.

In that case, you want to be able to adjust the risk and the RobotTradingSystem is able to do that.

If you are interested in adjusted risk and profitable results, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…
Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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This time we trade the year 2014 in this automated video.

We are trading the Australian against the Canadian Dollar to show you the results.

So why do we use this currency pair? Because it works so well. The risk setting is 15.

There is enough liquidity and therefore we have enough trading opportunities.

This currency pair is my favorite choice and most often it is the one that produces the best results.

But not always. I have looked at my automated MQL4 Brexit system that is running since 2016 and I get the best results for other currency pairs.

It makes more profit when I look at the British pound against the US dollar.

And it made the most pips trading the British pound against the Australian dollar.

Now you would probably have no problem to find reasons, why that is the case.

But actually, I don’t care. I do extensive backtesting, but that doesn’t mean that I can predict the future.

It works anyhow, because I am not only trading one currency pair – I use up to 22 currency pairs at the same time – depending on the system I use.

So if something goes wrong in one currency pair, I can always adjust that one and still make a profit – if the other currency pairs do well.

If you are interested in doing well with automated trading, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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This is the Envelopes entry and we are trading the year 2013 for the Australian against the Canadian dollar. We use a risk setting of 8.

Automated trading has several advantages. One is the fact, that we can do backtests in a few minutes.

A human trader can’t do a few hundred or even a few thousand trades in such a short span of time.

And the fact, that it only takes a few minutes doesn’t mean that it isn’t real trading experience.

Another fact is that an automated trading system can trade around the clock.

I doubt that any human trader could do that for 24 hours – even once – without serious mistakes.

We would get tired, bored and see things on the chart that aren’t really there.

And there is no way, that we could do that for 5 days and nights in a row.

But even if you could consume enough energy drinks to do that, you still wouldn’t be able to trade up to 22 currency pairs at the same time.

But any 10 year old computer can do that with MQL5.

That is why I consider automated trading to be the best invention since sliced bread.

If you are interested in good results with automated trading, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

[This post contains video, click to play]

Let’s trade the year 2012 with the Envelopes entry signal. This video is automated to show you the results.

Did you know that I never made any profits as a non-automation trader? I think the major reason is that I thought that it is all common sense.

So whenever I was sure that the price would go up, I placed a buy order and usually the price would immediately start to fall.

That would cause me to close the position and as soon as I did that, the price would start to rise again.

Whenever I tried to do the opposite of what I thought was necessary, the price did the opposite of the opposite.

So I found myself looking at charts, always asking the same question: What should I DO?

Should I go long or short?

Should I open another position, or close the current one?

Should I believe indicators or fundamental news?

Back then, I would have never traded what I trade today.

Because it makes no sense. You wouldn’t do that.

The only reason I let my system do it is: I have results.

I used backtesting to find out what works and I repeated that – again and again.

Today my results are much better, I don’t look at charts anymore and my system does, what it should do.

That took a lot of time, effort and money, but it was worth it!

If you would like to improve your own trading, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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This time we trade the Envelopes entry for the trading year 2011. In this automated video we trade the Australian against the Canadian Dollar and we use an insane risk setting of 25!

Backtesting is very useful, but from time to time people are disappointed when they try to do the same thing on their real account.

Most often, those results are very different – and there are several reasons for that.

For example you might have a low quality for the historical data you have used in your backtests. Look at the red bar at the end of this video to see what Metatrader considers bad quality.

Or your demo account might have a very moderate spread, while your real account has higher spread costs.

Or you have good results on your demo account, because it doesn’t cost you any money.
But your real account is something very different.

Whatever the cause might be, there is something that is very useful to make it through all these problems.

First we use a demo account to get started. Once we are satisfied with our results on the demo account, we would switch to a so called Cent account.

Just google it, it is a way to trade very small accounts – but with real money!

Once you are satisfied with your results, you can increase your Cent account or switch to a full account.

If you do that, you have the possibility to grow with your account – and that is one of the major keys to not manipulate your trading system!

If you are interested to trade with an automated trading system, you might want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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In this automated video we trade the year 2010 with the Envelopes entry. The risk setting is 5.5.

Do you think that trading is exciting? If that is the case, you probably should stop to trade, right now!

In my opinion good automated trading is very boring!

Why do you think am I using a risk setting of 5.5 for this particular backtest? Because I have tried several other risk settings before!

Most of the time I do the same thing – with slightly different settings.

That is how I got my systems to be profitable.

Just doing the same thing – again and again and again.

Trying something, improving it several dozen times – until it works!

I use the settings that work for the last decade to trade my own system.

Often I need to spend several hours to find the right settings to even survive a decade.

Afterwards I improve the setting until I can make a profit for a decade. That takes a lot of time!

So good trading is very boring for me. If you still get excited about a single trade, maybe your account size or your lot size for that trade is too big.

Could you become bored and profitable? If your answer is yes, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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This time we trade the Envelopes indicator to show you the results for the year 2009.

Nobody likes a draw down. Every trader would like to see the equity and the balance to go up forever.

Unfortunately this isn’t always the case. Yes, sometimes it looks like it would work forever, but suddenly you see your equity go down.

Now what? Should you close your positions? Should you hope for better times?

I know, what I need to do, because I have measured results from thousands of automated trades.

I know exactly how my expectancy looks like, because I have the data for each and every trade from 2014 up until now – for several systems.

If you have that kind of data, you don’t have to guess. You can simply go with what worked in the past.

The past doesn’t equal the future, but what would you prefer for something like a surgery?

A doctor who really did the kind of surgery you need for several years, or somebody who had seen General Hospital several times?

Trading is always risky, but I prefer to make it as safe as it gets.

That might mean that I only make a few thousand dollars for each trading year, but that is better than to risk all your money based on 17 discretionary trades.

If you would like to improve your results based on measurable results, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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This time we are trading the Envelopes entry signal for the year 2008. This video is automated, to show you the results.

2008 was the year of the financial crisis. Most people had some problems, some lost their money, others lost their job.

The year 2008 was one of those years where you probably wouldn’t like to trade at all.

But most of the time nobody knows, when the next crisis is going to happen.

So if you get aware of a crisis, it might be a good idea to adjust your trading risk. In this case we are using a risk setting of 2.

That is only a fraction of the risk that you could use for other years and it only makes a small profit – but you wouldn’t have lost all your money.

So from time to time you should check your equity and if you see something like the financial crisis from 2008, you should really decrease your risk.

With a smaller risk you obviously can’t expect outstanding profits, but you can always increase your risk settings later.

Yes, there are years, when you will see outstanding results, but 2008 wasn’t one of them.

If you would like to know how to manage your trading risk, you probably would like to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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This time we are trading the year 2007. We use the envelopes entry with a risk setting of 8 for this automated video to show you the results.

What would you consider to be the most important part of a system? Is it the entry?

Most people focus on the entry, because they believe that getting the right entry will help them to get the right results.

And I thought that, too. So I tried to find the one entry that never fails.

But guess, what? I never found it!

That is, because each and every entry signal are based on past events.

Not even the most shiny indicator is able to accurately predict the future!

So from time to time you will get false signals, no matter what kind of entry you trade.

And whenever that happens, you need to have a good strategy in place – or those false signals can ruin your whole trading account!

In your car, you use the steering wheel for the direction, the transmission and the gas pedal to adjust the driving speed – and the brakes to slow down when that is required.

Would you buy a car, where one of those important parts is missing? Probably not!

So why do you think that the success or failure of a trading system is just depending on that one magic entry signal?

If you would like to find out about the other components for your trading system, maybe you would like to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “ENVELOPES ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EnvelopesDemo.zip – Downloaded 42262 times – 72.90 KB

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We are trading the exponential moving average crossover entry for the year 2017 in this automated video – and I don’t like this entry.

Yes, it works and yes – I was able to make a profit with this entry for each of the eleven years in this testing series.

But it is too inconsistent for my taste. Like a colleague who behaves like he is your best friend now and won’t talk to you the next day.

But I only know that, because I have done a lot of tests. We are talking about six hours – and that is just for today and just for this one entry signal.

Most people are looking for something that is easy and simple. Well, the Robot Trading System is what I consider the next best thing to that.

But you still will need to find out, if it is the right fit for you. And you will need to do backtests to do that.

I know people who think that they have found the best system in the world – and their opinion is based on 17 trades or so.

But if you really want to improve your results, you will need to find out what works best for you – and nobody else can do that for you.

If you are interested to find out, what works for you, you might want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

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This time it is the year 2016 that we are trading for the Australian against the Canadian dollar. The risk setting is 6.

Getting something that works is the goal for each trader. So here is how I did that for my Robot Trading System.

First I coded something that was able to trade and produce a result. That first result was not very good, but it was something that could be measured.

Afterwards I changed one thing and tried to improve that lousy result. If I could do that for one currency pair, I would try to also do it for other currency pairs and other trading years.

If the results were better, I would go with the new approach.

If the results were worse, I would undo the change and change something else.

The goal was to find something that could produce a profit for at least 10 years in at least 10 currency pairs.

And to find the best way to do that, I changed different things and also did the reverse test.

The reverse test is to do the opposite of what you think is working to prove that it really produces a measurable advantage or disadvantage.

If you are interested to find something that gives you an advantage, you probably would like to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

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We are trading the year 2015 in this automated video and we are using an exponential moving average crossover entry.

The risk setting we use in this case is an insane value of 15.

I have backtested a few years for the exponential moving average entry now and I already know, that this will not be my favourite entry.

In fact, over all these years, I really have tested dozens and dozens of entries, but I still prefer the Bollinger Bands.

It might be, because it was the first indicator that made me profitable, several years ago.

But I think the main reason is that it can produce consistent results without too many bad surprises.

The exponential moving average crossover entry is very different. In this case I use a very high risk value of 15 – and yes, it makes a profit.

That might look like a good thing for other people, but in my real money system I would never trade such a high risk setting.

I prefer to start with a risk setting of 1 and currently the highest risk setting in my live system is 2.7 or so.

If you are interested to find entry signals that work with a lower risk setting, you might want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

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This is the crossover entry for two exponential moving averages. We are trading the year 2014 in this automated video. The risk setting is 6.

I really had to think twice, because I couldn’t even remember the risk setting I have chosen.

I am tired, because I didn’t sleep very well last night. I have a headache and I did several of these videos today.

And that is when I make errors. For example I might confuse the year 2013 with the year 2014 or something like that.

In trading this can become very costly. But as a human you get tired, you get a headache from time to time and sometimes you might get sick or bored.

And that is when we make trading mistakes.

You probably can’t watch 22 forex charts for 24 hours for five days in a row.

You need to sleep, you need to work and you want to spend some time with family and friends.

An automated system never has to deal with those kinds of problems.

That is why I think it is the better trader.

Before I used automated trading systems, I often missed market moves, because I wasn’t in front of my computer.

Today my computer does everything for me and I rarely look at charts anymore.

If you are interested to let your computer do the trading for you, maybe you might want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

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Let’s find out how the exponential moving average crossover entry does for the year 2013. This video is automated and we are using a risk setting of 5.2.

This is the value that works best for me.

I know, there are other people out there that might have a higher risk tolerance, a bigger account or better trading conditions because of the broker they use or the country they live in.

That is what it makes so hard to exactly find that one – one fits all – trading system that works for everybody.

Each and every trade influences the next one and the only thing that you can do to find the right solution that works is to test it.

You can download the demo version and find out, if this works for you. It is not that hard to do that.

But it is also not very hard to find dozens of other shiny systems, indicators and trading strategies.

The problem is not to find content that is trading related, the problem is to find out what is relevant for you.

For me it is results. I once defined that a successful trading system should be able to make a profit for at least 10 trading years in at least 10 different currency pairs.

That took a lot of backtesting, but in my opinion it is worth each minute.

If you would like to backtest other entry signals, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

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This is an automated video to show you the results for the Robot Trading System in the year 2012. We use an exponential moving average crossover entry and a risk setting of 10.

That is a very high risk setting and what we do in this video is too risky for my taste. I would call it a wild ride, because we see draw downs that are too high – if you are a risk averse trader.

In a backtest it is not very hard to watch such a draw down, but it is a very different experience when you trade on a real account.

That might cause you to manipulate your system – or even close the whole account because of fear or other unpleasant emotions.

So why would you do that? Because the money has a meaning for your life.

If your account is so big, that a total loss would cause problems in your lifestyle, you probably should trade a smaller account.

I often say that good automated trading is very boring, because no trade will make or break your account.

That makes it less exciting for traders, but if you are looking for entertainment, you probably should consider Netflix.

If you are interested in better trading results, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

[This post contains video, click to play]

We are trading the Australian against the Canadian dollar for the year 2011. This video is automated to show you the results.

This time we are using a risk setting of eight.

Market conditions change from time to time and 2011 was one of the years where you really can see that in the results.

Being an automated trader has some advantages and I really like it when the equity and the balance curve go up like on rails.

A draw down is something that no trader wants to see. We all prefer good results and profitable systems.

For our RobotTradingSystem we probably could increase the risk setting from 8 to 9 or even to 10, but why should we do that when everything works well?

Greed would be one reason why a human trader might want to do it, but an automated system is immune to that kind of emotion.

It just does what it is told to do and it will not violate the trading plan because of emotional reasons, nor will it do revenge trades.

We make rules before we trade anything and it will exactly follow these rules.

That is why it is called a system. Emotional trading is what I call hope trading – and that didn’t work very well for most of us – or did it?

If you are interested in an automated trading system that doesn’t get emotional, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

[This post contains video, click to play]

Let’s trade the exponential crossover entry for the year 2010. We are trading the Australian against the Canadian dollar in this automated video.

The risk setting is 4.5 in this case. Yes, the Robot Trading System also allows to fine tune the risk setting by using floating point values.

Now you might ask yourself, how one can find the best setting for the risk? Well, the answer is simple: We do backtests, again and again and again!

With an automated system it is almost effortless to do a few hundred or even thousand trades within a few minutes.

If your risk setting is too low, you will not make good profits. If your risk setting is too high, you might crash your whole account.

If you increase your risk setting carefully and your results improve – that is the right thing to do.

But if your equity suddenly is going downhill – that is the right time to decrease the risk.

It is not that hard to understand, but it is surprisingly very hard to do for humans.

We look for secret entries that never fail. We try to adjust the settings for each and every entry signal in the world – but we miss the most important and obvious thing.

If you can adjust your risk, you can improve your results.

If you are interested in risk adjustment, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

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Sometimes you can’t make much profit, no matter what you try. In 2009 we have still problems to make good profits with the crossover entry.

Market conditions change and so far I have never seen any entry signal that is always producing optimal results.

Every kind of indicator produces false signals from time to time and in the middle of a financial crisis that can be very unprofitable.

But if you are a long term oriented person, you might find out that you can expect better results in other years.

At least there is one good thing: I have also never seen any entry that couldn’t produce at least a small profit – if you use the right risk settings to trade it!

Risk is like the transmission in your car. You would probably never try to park your car with a speed of 80 miles per hour and you slow it down before you park it.

You should also consider to lower the speed of your trading system when it is time.

When you see that your equity is going down in a steep curve, it is time to use the brakes and avoid a crash.

If you want to avoid to crash your trading account in a financial crisis, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

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Why do we use such a low risk setting here? For 2007 we used a value that was more than two times bigger, so what is the difference now?

Well, 2008 was the year of the financial crisis. A lot of people lost a lot of money in 2008, so probably it would have been a good idea not to trade at all.

But you never know when the next financial crisis is going to hit the market, so how should you decide if you want to trade?

A crisis is usually something that is not foreseeable, so isn’t it good to know that there is a system that makes it possible to even trade the worst crisis that we have seen in this century?

In our backtest we are not so much involved, everything happens in a few seconds. But I still remember that we all have seen the news back in 2008.

Big banks went bankrupt, people lost their jobs or their life savings. Going all in would have been a sure way to lose all your trading money, so a low risk setting is probably a good way to survive the next financial crisis.

If you are interested in surviving the next financial crisis, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

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In this automated video we are trading the crossover entry with a risk setting of 7 for the year 2007.

The crossover entry is one of the most popular entry signals, because it is easy to understand.

In this case we have an exponential moving average that is calculated based on the last 20 candles and another one that is calculated based on the last 50 candles.

An exponential moving average is similar to a simple moving average, but the last few candles have a bigger importance for the calculation.

Whenever those two lines cross, that would be either a buy or a sell signal.

When the moving average for 20 candles is above the 50 candle exponential moving average, it is going up.

Otherwise, when the moving average for 20 candles is below the other one, it is going down.

We have a lot of entry signals in this case, but we will only trade whenever our risk setting allows another position to be opened.

For 2007 this entry is a good choice, because it produces good profits with a very acceptable draw down.

If you are interested in good results, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “EMA CROSSOVER ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD DEMO ACCOUNTS ONLY” EMACrossoverDemo.zip – Downloaded 36315 times – 72.39 KB

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This is the random entry and we are trading the year 2017. In this automated video we are using a risk setting of 8.

So – why should anybody even consider to trade a random entry?

A few years ago I bought a few trading books of Dr. Van Tharp.

In one chapter he described a conversation with another trader – named Tom Basso.

One seminar participant had asked if random entries could be profitable at all.

Tom Basso answered, that it would be possible to trade randomly generated entries – if all the other system components would be adjusted in the right way.

No way, I thought! So I coded a system to disprove it. And guess what?

It is possible! Of course, you don’t believe me!

So a good way to prove or disprove it would be to download the demo version for the random entry and trade it on your own demo account.

A random entry will create different positions – each time you trade the same historical data.

It will show you buy and sell signals, calculated by a random generator.

And trading a random entry is something that might help you to understand how important the other components in an automated system really are – entries are totally overrated!

If you are interested in other results, you might want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “RANDOM ENTRY ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD ON DEMO ACCOUNTS ONLY” RandomDemo.zip – Downloaded 37166 times – 69.92 KB

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This time we are trading the year 2016. We use a random entry signal with a risk setting of 2. This video message is automated to show you the results.

Not only the position entries will be different with a random entry signal.

You will also see different results at the end of the year.

That might mean better or worse results. Random is random, you can’t expect that a random generator would do the same thing each time.

So some people now might ask themselves if it wouldn’t be better to use an indicator that produces the exact same signals each time a backtest is performed.

Well, it depends on how you see the world. If you believe that prices go up and down for a reason, you will look for a confirmation to prove that.

If you believe that price movements are caused bye undocumented and unforeseeable actions that are performed by emotionally driven people – well, that would be very close to pure random.

But it doesn’t matter if you think it is possible or not, wouldn’t it be interesting to find out if you are right?

Yes, random entries might also create a loss, but that is true for each and every entry signal in the world!

Most indicators try to predict the future by looking at the past, so what do you think?

Would a profit made by a random entry be a good thing to prove if an automated system works?

If you are interested in other results, you might want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos.

Download “RANDOM ENTRY ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD ON DEMO ACCOUNTS ONLY” RandomDemo.zip – Downloaded 37166 times – 69.92 KB

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This time we are going to trade the year 2015 with a random entry and a risk value of 10.

This video is automated to show you the results.

Now how would a good result look like?

We all want infinite profits with zero risk, most people get the opposite and somewhere between those two ends of the scale – that is where we can find reality.

Trading is something that we do to make a profit, but what would be a good profit?

Would you like to come up with a $50000 account to make $300 in a year?

Maybe not. Maybe you could make more money doing something else.

To find out what a realistic result looks like, you need to test. In this case we use a high risk setting and it works – but if a draw down hits your account within the first few months, it could wipe out your account.

In October it is no problem, because we already made good profits, but – you never know that is going to happen in the future.

So it is a good idea to start with a lower risk setting and adjust it when things work out as expected.

Random entries are a good way to find the optimal setting, because in one hundred backtests you will get one hundred different results.

That is very helpful to get a good understanding about what works – and what doesn’t work.

If you want to know what works, maybe you want to check out the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance results…

Download “RANDOM ENTRY ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD ON DEMO ACCOUNTS ONLY” RandomDemo.zip – Downloaded 37166 times – 69.92 KB

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Let’s trade the random entry for the year 2014. This video is automated, to show you the results.

We are using a risk setting of 6.

If you use a higher risk setting, you think that the results might be better, but maybe you are wrong.

Higher risk settings will also mean that you could make much bigger losses.

From time to time, you will see that a high risk leads to a better result, but it may also be the course why your account maybe totally ruined.

It really depends on the market conditions and on your own comfort zone.

There are years, where you can expect good profits for a high risk, but in other years it would be a good idea to trade with very low risk – or not at all.

And you will only know if it was a good idea after you see the results!

Nobody can see the future, no indicator, no expert and even the best system needs to be adjusted to the current conditions!

You wouldn’t be able, to start your car and predict if all the traffic lights are green.

You wouldn’t be able to get up in the morning and predict everything that might happen on the particular day.

So why would you think that you are able to predict the future, based on trading conditions that happened in the past?

If you are interested to find out more details about results, you might want to watch the other performance videos on robottradingsystem.com – or where ever you get your trading performance videos.

Download “RANDOM ENTRY ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD ON DEMO ACCOUNTS ONLY” RandomDemo.zip – Downloaded 37166 times – 69.92 KB

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The most interesting thing about random entries is the fact, that it is possible to make a profit by using this entry.

That doesn’t necessarily mean, that the random entry is the entry to produce the best possible results!

You might find that other entries may be better for you, you might also have some other trading strategy that you have already used to make profits.

From time to time you will see that each and every entry has periods where it doesn’t perform very well.

Market conditions might change, and what worked for the last trading year, might not work for the current trading year.

The market is going to do what it is going to do, you don’t have any chance to change it!

The only things that you can change is when you trade, how much you trade and when you close your positions.

Wouldn’t it be a good idea, to find out how all these things influenced your results?

With automated trading, you can do that within a few minutes!

If you are interested in finding the best way to do that, maybe you want to watch the other performance videos on robottradingsystem.com – or whereever you get your trading performance videos…
Download “RANDOM ENTRY ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD ON DEMO ACCOUNTS ONLY” RandomDemo.zip – Downloaded 37166 times – 69.92 KB

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This kind of risk would be much too high for my personal system, but I know there are different people out there.

Some folks don’t have any problems with high draw downs to make better profits.

I am very risk averse, but that is something I needed to learn.

When I started out I had no idea what I did.

I just listened to people I didn’t know and did what they said.

I took lessons from my broker – you know, the guy who makes money anyway – even if you ruin your account?

I tried to develop a feeling for the market. Yes, a feeling!

Today I know that trading with a feeling is like driving on a highway, blindfold, trying to find out the right direction by listening to the car radio…

If you try to trade your feelings, you probably should not consider to trade at all.

In my eyes it is the second fastest way to part from your money – the best way probably would be burning it!

So if you want to keep your money, you need to adjust your risk!

If you are interested in adjusting your risk, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…
Download “RANDOM ENTRY ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD ON DEMO ACCOUNTS ONLY” RandomDemo.zip – Downloaded 37166 times – 69.92 KB

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Let’s trade the year 2011 in this automated video. We use a risk setting of 5 this time and that is half of what we used in other years.

In almost every trading year you will see a period when your equity is far below what you have invested.

Backtesting is always something that is done with a start and an end date, so it might be possible that the biggest draw down will occur at the end of the test period.

When you are trading on your live account, you would probably not close your account just because it is December.

But the strategy tester has no other choice, it will trade exactly the way you told him, so if you have made a loss on the last day of the backtesting period, your strategy tester doesn’t care.

It does it as good as it is possible, but you are human – and you can do what you want to do.

So if your system makes a good profit, you could decide to close all the open positions before December.

I like to close all open positions whenever I have reached my equity goal and the equity and the balance curve are very close to each other.

If you are interested to find out how to make profits, you might want to watch the other videos on RobotTradingSystem.com – or wherever you get your trading performance videos…
Download “RANDOM ENTRY ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD ON DEMO ACCOUNTS ONLY” RandomDemo.zip – Downloaded 37166 times – 69.92 KB

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We are going to trade the random entry for 2010. In this automated video we are using a risk setting of 4.

In some backtests you might notice that a few months of the year are traded in one or two seconds when you disable the visual mode.

Other months might take much longer to calculate and you might ask yourself about the reason.

Well, there are two things that can cause your backtest to speed up or slow down.

The first thing is the number of trades that need to be calculated. The more open positions you have, the longer the backtester needs.

The other thing is data quality. Historical data does not need to be imported, it is automatically downloaded when you start a backtest for the first time.

And from time to time the quality of that data is not very good – as in this case.

You can see the quality indicator for the historical data at the end of the backtest, just click on the backtest tab in Metatrader and look at the history quality score.

In our case the system works anyway and there is no guarantee that you won’t have power outages or networking problems in real trading.

So it is a good idea, to use a system that can also perform with crappy data.

If you are interested in system performance, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…
Download “RANDOM ENTRY ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD ON DEMO ACCOUNTS ONLY” RandomDemo.zip – Downloaded 37166 times – 69.92 KB

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This time we are trading the random entry in 2009. The risk setting is 4 and this video is automated to show you the results.

I like the random entry, because it is not predictable.

So there is no bias and each and every backtest for the same year will produce different results.

The reason is simple: Each position that is opened will influence the complete system and all the positions that follow.

So why is it possible to make a profit with randomized entry signals?

In my opinion entries are necessary, but the right entry setting is not what will make your system a winner or a loser.

There are other components that have a bigger influence, for example how many positions you trade at the same time.

Like a car needs to adjust it’s speed to the traffic, a good trading system must be able to adjust it’s risk to the current market conditions.

That is still not a guarantee that it could not make losses, but it improves your chances for a profit significantly.

If you are interested in improving your chances, you might want to watch the other videos on RobotTradingSystem.com – or wherever you get your trading performance videos…

Download “RANDOM ENTRY ROBOT TRADING SYSTEM - DEMO VERSION - WORKS WITH AUDCAD ON DEMO ACCOUNTS ONLY” RandomDemo.zip – Downloaded 37166 times – 69.92 KB