Facts about Trading Robots (EA)

 


Facts about Automatic Trading Robot (EA)

6 April 2018

1. Overview on Trading Robots (EA)

Future has arrived with Artificial Intelligence. Although Stephen Hawking warned that AI could be destructive for our Human world, in the history, human often failed against the temptation of the Pandora’s Box. Well I think if we can not avoid, then we just have to adapt it and try our best to avoid the negative consequence. As the part of the extended trading technology, we decided to offer Trading robots (EA). Some of them are 100% automated trading system and some of them are capable to collaborate with human. These two tables below show some facts about our Trading Robots provided from us.

Robot Name (EA) A. Sensitivity to choice of Broker B. Sensitivity to Latency (or order execution speed) C. 100% Hand Free Autopilot Mode
Harmonic Pattern Order EA Low Low Yes (But not possible to backtest). Preferred to use Human attended
High Frequency Robot EA High High Yes, always
Price Breakout Pattern Autopilot EA Low Low Yes
Pure Algo Trading Robot EA Low Low Yes, always
Smart Turbo Grid EA Low Low Yes, always
Robot Name (EA) D. Human and Robot Collaboration E. Frequency of Trading F. How easy to use
Harmonic Pattern Order EA Yes, it is preferred this way. Low to Medium (rarely some traders scalping with Harmonic Patterns but possible) Easy
High Frequency Robot EA No High Difficult
Price Breakout Pattern Autopilot EA Yes, you can. Low to Medium Easy
Pure Algo Trading Robot EA No Low to Medium Easy
Smart Turbo Grid EA No Medium Easy

We have six criterion to check in this article.

A. Sensitivity to choice of broker

B. Sensitivity to Latency (Order Execution speed)

C. 100% Hand Free Autopilot Mode

D. Human Robot Collaboration

E. Frequency of Trading

F. How easy to use

2. High Frequency Trading Robot EA

Unfortunately in real world trading environment, there are some friction between parties (i.e. broker, exchange, trader) during messages travelling. This frictions are caused by many things including the speed of internet between your computer and your broker or the speed of internet between your broker and exchange In addition, how slow your broker process your orders and deals can increase this friction too. These frictions are often manifested as sensitivity to choice of broker and sensitivity to latency.

For high frequency trading robot with short holding time, these sensitivity increase much more than low to medium frequency trading robots. It is because high frequency robot requires to buy and sell in less than a sub seconds often. In addition, you need the knolwedge of the tick data too for this robot. For this reason, we only recommend the high frequency trading robot for trader who have some experience of running this sort of trading robots. Except the high frequency trading robot, rest of the trading robots (EAs) are not so sensitive to the criteria A and B. Average traders can use the rest of the trading robots (EA).

Figure 1

http://algotrading-investment.com/portfolio-item/high-frequency-robot-ea/

3. Harmonic Pattern Order EA

Regards to the Harmonic Pattern Order EA, we have originally developed it to offer the Precision Harmonic Pattern Trading for average trader. Harmonic Pattern Order EA can provide 12 different order setup in real time. You can control multiple of orders in one-button click when the harmonic pattern is detected. You can even trade Harmonic Pattern during important Fundamental news release with this EA. Different strategy can be used per the market. We added a 100% hand free autopilot mode within Harmonic Pattern order EA as a bonus. The fact is that we can not backtest it in the Meta Trader strategy tester at all. Computation is too heavy and too slow. Therefore, we recommend using this 100% hand free autopilot mode at your own risk only. Most of time, we recommend Harmonic Pattern Order EA as your Precision harmonic Pattern Trading tool (You need either Harmonic Pattern Plus or Scenario Planner to run this robot). When the right time comes, we will move on to build 100% hand free autopilot mode in the future.

Figure 2

http://algotrading-investment.com/portfolio-item/harmonic-pattern-order-ea/

4. Price Breakout Pattern Scanner Autopilot EA

Price Breakout Pattern Scanner Autopilot EA is already known by many traders because the counter part of the manual trading tools we provided, Price Breakout Pattern Scanner. Price Breakout pattern Scanner Autopilot EA was developed first in 2015. Like the Harmonic Pattern Trading robot, we had given up at that time because the computation was not sufficient to run the EA on tester. In 2018, with the help of better hardware, we finally decided to release it as the 100% hand free Auto trader. Yes, it does the job. The thing is you can run this robot as the trader support mode (Human + robot collaboration). The concept of trader support mode is slightly different from just using other technical analysis. The performance of the robot is already tuned to offer you the profits but you can still add your own information filter (like fundamental news, etc) to filter out the potential bad trades from the robot. Since the trading principle from robot is similar to the Price Breakout pattern Scanner itself, the robot will provide the natural humanly rhythm, which any trader can co work together with the decision of the robot.

Having said that, the Price Breakout Pattern Scanner Autopilot EA can be used as 100% automatic trader. In fact, we run it as 100% automatic mode since we do not have the time to collaborate. Likewise, if you do not have the time to collaborate with the EA, then just run the EA as 100% automatic mode. For your information, to run the Price Breakout pattern Sacnner Autopilot EA, you do not need Price Breakout Pattern Scanner. It is absolutely standalone product.

Figure 3

http://algotrading-investment.com/portfolio-item/price-breakout-pattern-scanner-autopilot-ea/

5. Pure Algo Trading Robot EA

Pure Algo Trading Robot was first released in April 2017. Then it went around 40 weeks of autopilot mode in low risk setting. Without changing any single parameter, it managed around 40 weeks of running. This EA is also for the low to medium frequency trading robot. Unlike the Price Breakout pattern Scanner Autopilot EA, this one is strictly driven by the backtesting and it is less friendly to human. We do not think human can collaborate with the way this robot trade although this robot is operating in low to medium frequency. For this Pure Algo Trading Robot, it is best to run this robot as 100% automatic mode. Personally recommend to revise its parameters every 6 month so to stay in the more profits.

Figure 4

http://algotrading-investment.com/portfolio-item/pure-algo-trading-robot-ea/

6. Smart Turbo Grid EA

Smart Turbo Grid EA uses Grid Trading principle but it is well executing the complex grid trading with simple user interface. Amazingly this sophisticated EA have less than 20 inputs to control for traders. This is very good news for you because you can get started very soon after your product is shipped. Another good news is that default setting is already tradable and therefore, you do not have to spend too much time on optimizing the parameters. You still have to choose your risk parameters (RiskPerCycle input) because your rewards and risk will be controlled by these input. As everyone know, Grid Trading strategy is High Reward – High Risk trading system. So you really need to understand the nature of High Reward -High Risk trading. The very best part of this EA is easy to use comparing to other EAs. If you are using the EA with the moderate risk level, the EA can become your work horse for your trading and investment. The weakness might be that it is limited to use EURUSD currency symbol. However does this really matter? Profit is profit after all whether they are come from many currency pairs or one single currency pairs. As recommend, this is EA is designed for 100% automated trading.

Smart-Turbo-Grid-EA-400

http://algotrading-investment.com/portfolio-item/smart-turbo-grid-ea/

7. Which Trading robot should I choose?

I think this the most important question but difficult question. I think each trading robot have their own advantage and weakness. The best criteria will be how easy to use the EA. During your trading, from time to time, you might need to fine tune your trading robot according to the market condition. You do not have to do this every week or every month. But you may need to do so after some months. Therefore, easy to maintain is the important criteria.

Take the robot trading as the long term project rather than the rich quick scheme except Smart Turbot Grid EA. Because it is High Reward – High Risk Trading EA, you might be gaining considerable amount of profits for short period of time but with high risk. If you find that using trading robot is too difficult, then we recommend manual trading. Manual trading can provide you the real discipline for the real trader. Visit our website for the great selection of manual trading systems.

http://www.algotrading-investment.com/

8. Human Robot Collaboration VS 100% Artificial Intelligence (Automatic robot)

This is one of the favourite debates in the world of artificial intelligence. The same debate can be extended for the world of trading. I do not have a definite answer. Many traders think that Human Robot Collaboration seems to have a slightly better edge than the pure 100% Artificial intelligence (automatic trading robot). Few things are clear. Most of 100% automatic trading robot can not listen to the real time news flowing into the financial market. If they can act on the real time news, it is different story. At least for now, such a high level of Artificial Intelligence is only few around the world including Google’s Alpha Go, IBM’s Watson, etc. In this point of view, Price Breakout Pattern Scanner Autopilot offer you the different edge for your trading with Human – Robot collaboration.

Figure 5

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