I am currently testing FXCM’s Forex System Selector, which is a web based automated trading tool that allows the user to select one or more trading systems, and have them automatically traded against an account. Currently I have this running against a one month demo account, which is funded with $100,000. I have now selected some trading models, and the Forex System Selector is trading automatically against the account. This article reviews progress to date.

I chose the following models for my test of the system:

The models that I have chosen generally have a high profit per trade and low drawdowns.  I am aiming for a smooth equity curve.  According to the simulation of historical results, this will be achieved, but I would like to see how this performs in real life, not just against historical figures.

To date, one trade has been completed (closed) and one trade is currently pending.

The FXGrup system bought 200 lots (mini lots) of GBP/USD, and lost $500 (25 pips) when the trade was closed (presumably after hitting a stop loss) about 30 minutes later.  Currently the same system has again bought the GBP/USD pair, and is currently 11 pips in profit ($220), again trading 200 lots.

One concern that I have expressed with Forex System Selector is that many of the systems do not have extensive track records.  Also, many systems don’t trade that often.  My preference would be to a range of systems that can trade regularly but with conservative risk profiles.  I am not sure that I can get a good overview of the systems that I have selected (which I think are some of the best available) within the one month lifespan of the demo account.

However I’m pleased that the trades appear to be executed smoothly.  This is pretty much a “set and forget” trading tool.  I’ll continue to monitor how the portfolio of systems performs and post the results.

Tags: automated forex trading, Forex Trading, FXCM

This entry was posted on Wednesday, April 9th, 2008 at 1:28 pm and is filed under Automated Trading. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.