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nishant

Automated Buying/Selling???

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Hello everyone,

 

I'm having a weird thought and really had been searching for an answer.

Though i basically trade chartistically on making Price and Volume as the main ingredients, i was having a thought and exploring another aspect of trading - System based trading. The immediate big question was "Forex" itself! Trading a limited hour market is fine if a system is followed as one can trade all the trading signals given by system. But generally its impossible rather illogical to follow a system if a person is trading Forex for the fact its a 24 hour market. Say for instance, if a person trades on the 4-hr basis time frame then (say) he can just manage to take every single trade that the system shows. But what if a person trades on 15 min bar, or best to assume if he trades his system on 5 min chart. Its obviously impossible to trade all the setups. What one requires now is the automated buying/selling. So i was wondering if there is/(are) any broker who actually provides for automatic buying/selling if the system's condition are fulfilled which shall mean that you just need to develop a system - feed the conditions - and all the trades shall be executed automatically once the conditons are fulfilled and triggered.

 

Regards,

 

Nishant

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Nishant,

 

I do recommend you stay when your order is executed. The last thing you want to happen is some computer error and being down with a heavy loss.

 

You can use OCO orders. If you use advanced execution platforms like Ninja, you can set your stop and target parameters. Once the order is executed you can simply walk away and come back later. Also obviously in any market, during a 4 hour timeframe you are not going to receive 100 buy/sell signals. More like 1-3 signals.

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Good Morning,

 

I saw your post about automated trading signals being executed by your broker in the 24 hour forex market.

Here is another issue with automated forex trading and forex trading in general you might want to be aware of.

I use to have that done for me by the one and only RefcoFX. Unfortunately, now I have no trading capital since their lawyers and the nice bankruptcy court decided to give my trading capital to the secured creditors of Refco, LLC. Bottom line, don't just go with any broker that offers the service and don't leave any more money in your forex account than you need to trade with because your broker has just been given the green light to steal your trading capital if they get into trouble. I now use my automated strategy in the currency futures market which is regulated and protected by the CTFC.

It is a stripped down Tradestation strategy that I run on the front month contract which does not offer enough historical data to use the full version.

 

I am still involved with the spot forex market by selling advice to a couple of forex fcm's for their traders to trade based on supply and demand analysis. Supply and demand is price based analysis only. The best part of that is that you can use OCO orders for all my trades since I identify the areas of supply and demand I want to trade between both long and short ahead of time.

I have a free blog where I post the trade recommendations based on supply and demand for the forex market. Here is the link to the free blog for you to follow if you are interested: Forex Trading Based on Supply and Demand

I am interested in adding the study of volume to what I do by using the Market Profile. I am from Chicago and I work at both the CBOT and CBOE, but I have not met Mr. Steidlmayer. I actually had a fight with the guy who was suppose to introduce me to him the day before I was suppose to meet him.

 

Happy Holidays everyone,

 

Steve Misic

Fatdog1

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Hi Steve, nice to have met you in the chat room. Now you are a member of the CBOT (have a seat there?) or just working for a trading company at CBOT? Just curious. Very nice blog, see you cover virtually all the majors! I'm only with GBPUSD for now, more than I can chew, I'm afraid. But baby steps for me for now.

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Hi Steve, nice to have met you in the chat room. Now you are a member of the CBOT (have a seat there?) or just working for a trading company at CBOT? Just curious. Very nice blog, see you cover virtually all the majors! I'm only with GBPUSD for now, more than I can chew, I'm afraid. But baby steps for me for now.

 

Hi Torero,

 

No seat. I have a few shares of stock. Very few now since the buyout was announced. I work in the CBOE now more than the CBOT. I am involved with a couple of firms and I am working toward a CTA so I can do it for myself down the road. I use to like the GBPUSD when I was trading forex for the larger ranges it trades in daily. I hit the short at 1.9697 for the prop. traders, so they were happy today.

Take care,

FD1

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Can you explain what prop traders and prop firms are? I was tempted to join one a long while back but decided against it having reading a few reads here and there and wasn't convinced enough to trade in freedom and keeping my own money. Is it as true as some forums claim?

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Can you explain what prop traders and prop firms are? I was tempted to join one a long while back but decided against it having reading a few reads here and there and wasn't convinced enough to trade in freedom and keeping my own money. Is it as true as some forums claim?

 

Good morning Torero,

A prop firm is a trading company that lets traders use their trading capital to trade. Most of them now require a trader to deposit a small amount, like $5000.00 and then they can use the firm's leverage to trade larger size than they would be able to on their own. Most of the firms have an arrangement with a clearing house so as to share in the commissions, and most charge monthly fees for the desk, software, ect. A few of them do a decent job of training the trader. Most of the training I see is to jump in when there is news without any idea about where to get out. I trade using supply and demand so I work with the traders to identify the trading ranges for the day. As you know, there are times when good news can be sold into and bad news can be bought if you know where.

 

FD1

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So these traders are clueless? I thought you had to have a decent track record before trading their money.

 

Depends on the firm. If the firm is into training new people, they are sharing in the commissions, the desk fees, a portion of the profits, software fees, ect.

They will hire anything with a pulse until they blow out the deposit and leave, or deposit more and stay. You want a job at Goldman so you can share in the billion dollar bonus if you have a track record, lol.

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