This article is part of my ongoing evaluation of FXCM’s Forex System Selector, 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.

This is running against a one month demo account, which is funded with $100,000.  Previous articles have given an overview of the product and the first trades.  This article provides an update on trading performance to date.

In terms of the operational smoothness of the system, I can report that it continues to operate flawlessly.  I am taking note of this because I have tried several other products that were unstable and continually lost server connectivity.  The fact that this product is web based, and on FXCM’s own server means that connectivity to FXCM’s quotes and trade execution engine is well controlled.

The trading performance to date is fairly disappointing, but not entirely unexpected. In previous postings, I noted that the performance of the trading models will make or break this product.  I believe that I have chosen some of the best and most conservative models, but to date (in the last weeks), one model (which has been responsible for all 4 trades) has lost 116 pips, which is around 2.3% of the trading capital.

One trade, which uses a different model is currently open, and is down around 22 pips at present on the CHF/JPY pair (long)

The performance of the closed trades to date is as follows:

The performance to date, given that it only includes 4 trades and one model is inconclusive. I will continue to report back on how this system (and my selected models go).

Tags: automated forex trading, Forex Trading, FXCM

This entry was posted on Friday, April 11th, 2008 at 12:05 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.