{free Forex Expert Advisors Who Would Pay If There Is No Difference? You Can Find A Lot Of Forex T
There are a lot of forums where people discuss free trading strategies
.Yet once you read these discussions you will quickly see that they are only talking about strategies that will encourage losses.
So why does this happen? Can a free automated forex trading system actually make profit?
We'll look at this here.
As a reminder, this is what he forex market is.
Quite simply, it is the sellers and buyers. For a transaction to happen, you need both parties to participate.
Most people are aware that the bulk of forex transactions are based on speculation.
So each trader believes the market will go in their direction when they transact.
So there will always be a market as long as traders have different views.
Let's suppose that all brokers and dealing centers on the Forex Market are remarkably honest and decent and take all their clients' transactions to the inter-bank market.
So, if most clients are using identical trading systems and open trades in the same direction all at once, they can't.
This is because brokers won't be able to obtain the required amount of offsetting orders at the given price.
This is hardly a disaster as all that will happen is that the currency pair will just move in that direction.
But traders, who counted on making a profit from opening positions on the basis of signals from the same trading system won't do so.
This occurs as there will be a poorer price than before when entering the market (according to whichever automated trading system) or will not even come into the market.
So you can't have a lot of traders making profits via identical strategies were all trades to go to the inter-bank market.
We can also assume another situation where the bulk of forex brokers are 'kitchens'. I.e.The market is bypassed for client transactions and it is only traders trading against each other.
There is a huge swathe of discussions about the morality of forex brokers from Russian traders.
These brokers supposedly do their best to take money from traders - honest-to-goodness professionals.
That's not for commenting here. Let's just say that it's best to look elsewhere for reasons that trades fail.
We'll look at where you should look for these reasons later. For the moment, we'll just assume all is ok.
From this scenario, it's clear that no liquidity is offered from 'kitchen' dealing (and on the screen) for all of the traders that have opened positions in identical directions simultaneously.
Or to be more precise, it can provide liquidity but won't do it as an unbalanced net position carries a high risk of ruining a dealing center.
Therefore, an automated trading system, used in droves, cannot bring profit in any of the reviewed cases.
But today there are very few examples of 'kitchens' and Meta Trader will tend to automatically cover the net positions.
But automated trading systems are called 'automated' because they carry out an algorithm monotonously.
So they can simultaneously place orders.
Taking into account the processing speed of clients' requests, which MT is capable of, unidirectional 'tails' (net positions), generated by brokers (dealing centers), will get to contractors and then to ECN almost simultaneously.
Many expert advisors trade on European currencies during the Asian session, when the market is 'thin',
Contractors of dealing centres quickly take the single orders that hang in ECN and the ones that are last will translate new prices (these are re-quotes which then have strong slippage when it comes to execution) for clients.
It cancels out the profitability of widely used automated trading systems, many of which are designed to make profit in the amount of 1-2 spreads, so comparable slippage makes them unprofitable.
So you will find the most popular words used in the discussion forums of the automated trading systems are 'drainer', 're-quote' and 'slippage'.
If you haven't worked it out, then a 'drainer' is an expert advisor that 'drains' your deposit.
No wonder. Forex is no charity so commonly used approaches are not going to make you money.
So what are some of the benefits of trading systems?
Professional traders know that when they make a profit, someone else has made a loss, even those using the free forex expert advisors.
Take our word for it that a real trader is an exceptionally cynical man.
By retaining this attitude they consistently profit from the misfortunes of others.
But in the main, most failures are the fault of the traders themselves.
They tend to view the market like a charity or Las Vegas.
They spend their time optimizing and discussing the free forex strategies and not considering the things we've looked at here.
It was Larry Williams that once said, these traders will only ever be on the expense side of the forex cash book.
So are there any profitable trading systems?
A clever trader asks himself this question a few moments after starting his trading career.
We know that there are trading systems that can make profits.
But these systems are not free and are developed by experienced traders, who have the 'sense of the market', which is often the most significant condition for success in Forex trading.
And the very experienced traders do not need to use automated trading systems as they can make big profits without them.
Alex Gerchik is a striking example. His trading techniques are like art, and not every trader, who saw Gerchik during real time trade, could repeat his actions.
As with all arts of skills, trading needs attention, devotion, hard work and talent.
However, another category of people also achieves success almost in any kind of art (and day trading is no exception).
Craftsmen. There is no disdain in this word; on the contrary, these people perfectly know their craft and do not acknowledge any mysticism. They achieve success by using exact calculations and consistency.
The basis of an automated trading system can often be this consistency.
And it is often made into a profit-making powerful tool by trader-pragmatists.
So would a trader who has made this great system just share it freely with potential competitors?
This is not going to happen. This isn't about greed as successful traders aren't greedy but just an awareness of what happens once a profitable strategy becomes common knowledge.
And know you know this too.
So, you can make a conscious choice of how to deal with your trading capital.
Will you throw your money into the pot for other to gain by using free forex advisors or look for the profit-making trading systems that the professionals use? It's up to you to choose!
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