More than 15,000 users of have developed nearly 80 automated trading systems to date.
(PRWeb) February 6, 2007 -- More than 15,000 users of www.forex-tsd.com have developed nearly 80 automated trading systems to date. Many of these systems are experimental and not all of them have a track record of profitable trades. That is expected to change as the systems are constantly improved and adapted. An impressive number of systems, however, have registered a profit for their users.
The Forex market is undergoing rapid change as more and more people contribute new ideas and novel strategies. Automated trading systems are perhaps the best example. Typically these systems are developed for profit by very specialized programmers. That is all changing thanks to a group of experts who are bringing Forex market software into the open source world.
With the Forex market's continuous development and the range of new websites offering the facility of trading online, it has become difficult for newcomers to develop a firm trading strategy. www.forex-tsd.com plans to change all of that by launching an international community forum bringing together software developers, testers, traders and enthusiasts who are prepared to share their knowledge. Group members are building their own automated trading systems and incorporating their specific trading strategies using a common open source core.
The current winners of this open source development community are those few that managed to withstand the test of time and perform persistently over a period of more than six months. They are: CatFx50 system, EMA cross and some development of EA's concerning Step Moving Averages and breakout trading strategies. Other reliable solutions are on the verge of becoming trusted since they have performed well for a shorter timeframe of around 3 months. These systems rely on several other techniques like: Multi-Timeframe indicators development, ASCTrend indicators derived from manual trading, the "XO" method and others.
The testing itself is performed using three different mechanisms: back tracing, which means that the profitability of the system is deduced by analyzing the past performances of the market; practice accounts, a facility used by most Forex dealers in which a trader can deal with virtual money, and actual live testing. This comprehensive approach ensures that the best performing programs are quickly apparent. All of the programs are ranked on the site by profitability.
The greatest challenge for this community lies not in the development of the various automated trading systems but rather in expanding the core application which is a flavor of Metatrader. This is a well known free software platform used worldwide and developed by Metaquotes. There is a lot of work going on in this direction with very promising results.
One of the most important tasks ahead involves developing methods to acquire up-to-date information on current market developments since most of the systems rely on market volatility and periodic shifts. Another task involves creating live trading portfolios in order to provide a means of calculating more accurate ratings on existing systems, signal the existing updates, display errors and generally provide a greater understanding of how the various trading systems function by presenting all the relevant data.
Perhaps the most ambitious project of this open source community is the development of EA scalper. This very purpose-specific automated trading system is designed to help traders recover their losses after a bad period of manual trading. This is a compromise solution for those traders who do not wish to rely on automated trading systems alone, but are willing to use them in exceptional circumstances.
Profits in the Forex world are measured in pips. A pip is smallest price change that an exchange rate can produce. The structure of the Forex market allows a trader to use a larger amount of cash than he or she has. This is called leverage. The trading ratio is usually around 100:1. This means that for the price of one monetary unit, the trader controls 100 of them. In this light, the 3000 pips per month that the leading projects have made in the past month seem impressive indeed.
For more information on this revolutionary project visit: http://www.forex-tsd.com
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