Is forex robots investment profitable after all?

forex investments

Actually, should I ask if forex robot trading is profitable or not, but before asking this question we should talk about a criteria for comparing. Is forex robots investments profitable vs bank deposits? Definitely yes, it might be considering the fact that if the proper trading tools are used one could earn more than 5% per year. (that’s the average interest you can get from a bank). On the other hand if you put your money on a bank and leave it there is psychologically much safer than trading forex. Before going in details, let’s set up a few premises:

1. Never invest in forex what you can’t afford to lose. Forex is a very risky business, you could lose a large amount of your hard earned money so unless you have a solid inside tip, don’t trade what you can’t afford to lose.

2. Don’t babysit your forex robot, if you do, you will definitely lose because the market will always be one step ahead of you, and you will always be one step behind Smart Money. All we have to do is to follow them. I know it’s pretty hard to follow this piece of advice, but trust me, I got sick and tired to babysit my robots, I have just thrown them on a live account and forgot about them. My test live account is $300 so I don’t really care about it. My goal is to test my bayesian filter+neural networks approach. So far so good, it runs as expected, the maximum drawdown hasn’t been reached, everything works exactly as it should and my approach of trading multiple pairs and multiple timeframes was good. The other approach of NOT OPTIMIZING MY SYSTEMS AT ALL was also good. My neural systems run with inputs from the market itself.

We all saw forex robots rising and falling over the years, some of them coded by me, eh..
In time, I realized that the market works exactly as a roulette: if it is perfectly balanced the long term results will always be breakeven if take profit equals stop loss. The only way to make profits is to wait for a small unbalance. If you haven’t heard of Joseph Jagger yet, then reading about him is a must. The only way to make profits is to wait until the market gets unbalanced, withdraw the profits, leave the initial deposits than start over. I’m gonna do just that, so far my system is at breakeven but it only need a good month or two to climb to 35-50%.

3. Trade on majors, all timeframes. If one currency goes down, the other goes up, you follow the balance and wait for the unbalance to take profits. I’m waiting for my account to climb to 50%, then I’m gonna withdraw those 50% and start over.

4. All systems fail on the long run. True, but I must add, all individual systems fail, all over optimized systems fail, all strategies fail. Neural networks, if properly built don’t follow a particular strategy, all they do is to classify the inputs coming from the market, they auto organize as the market changes. My educated guess is my system will not fail unless a very dramatical change on the market occurs, and I mean a VERY dramatical one.

5. Don’t think short term, if you are an experienced trader you should know that a strategy can go very well for a few months, even for a few years then bite the dust, everyone remembers Forex Growth Bot, it was a valuable lesson for me.

6. All years must end up in profit, if this is not the case, there is something wrong with the system and it should be taken care of that issue, perhaps adjusting it? I have another 4 months of live testing, if I don’t end up in profit then I’m gonna accept the failure. Let’s wait and see.

7. Diversification is the key to success, don’t keep all the eggs in the same basket.

Can you please take a look at my system located here:

Click custom analysis and choose single currencies, one by one:
XAUUSD – +5.46%
GBPUSD – +2.82%
AUDUSD – +7.28%
EURUSD – – 18.66%

Total: breakeven

Should I remove EURUSD? No, as long as it works as it should. I won’t remove it because things can change anytime and I’m waiting for the “magic” moment of unbalance to collect my profits. Will the unbalance ever come? Backtests show this happens at least twice per year, so I have another 4 months of waiting to prove that theory. Stay with me guys, I don’t write ofter but I’m working hard. As always I promise to share everything with you, for free.