The Forex-Ai Autotrader
Does this sound familiar?
You are watching the EUR/USD and the price is just breaking through the resistance line . You see significant buying interest. You get in, to ride the trend as you havebeen taught in several Ebooks. Or perhaps you have read it in servera books over the past few years.
As soon as to get in, the chart moves downwards. You are watching in horror as the price is getting closer to your stop loss . You are staying in, because you know, you have to stay disciplined . Only a few minutes later the price moves down and snaps your stop/loss . Not again ! Another 25 pips down the drain .
Then
Then, straight after your stop/loss was hit , the price starts moving up again and within minutes it shoots up 50 points. You were right all along.
It is frustrating isn't it?
It happened to most of us . Working with small bars , 1, 2 or 5 minutes you tend to use small stop loss orders , like 20 or 30 pips. The problem using such small stop loss orders that is that it often quickly gets snapped as the price moves in an erratic way .
Successful traders on the Forex market often take a longer term approach and use 1 or 4 hours charts and aiming for larger gains per trade. The issue using those longer time frames however , that it becomes boring over time .
You tend to want to trade when you are working on front of your PC . That is why most Forex traders frequently use the 1 or 2 minutes charts, so they can actively trade 4-5 or even 20-30 times during a session . This type of trading makes the broker rich, but not the you .
But how do you trade using longer time frames like 1 or 4 hours? The opportunities often occur when you are asleep, at work or went out for shopping.
There is an option
Use Expert Advisors for MetaTrader . It can automatically place trades for you while you are away from your computer.
The problem with most of the Expert Advisors are just toys and really don't make money on the long term because tha market is continously changing . You need to keep fine tuning the EA parameters to suit the new market condition.
This is when Artificial Intelligence can assist . Using Neural networks in your forex trader can assist in changing those parameters , because the AI engine can learn the new market conditions and can do it for you. One such system I played with recently is forex-ai.
Steven Zed
I am a professional Forex trader since November 2007. I mostly trade the majors on a longer time frame. You can contact me on http://www.metavest.com