David Rodriguez Quantitative Analyst at DailyFX
David Rodriguez Quantitative Analyst at DailyFX

Coding, backtesting and strategy optimisation techniques for Automated FX

Modest barriers to entry have made automated trading more popular than ever, and the explosion of pre-packaged automated trading systems have particularly flourished through FX markets. What was once the playground of only the most sophisticated speculators is now accessible to anyone with an internet connection and a modest-sized trading account.

Heavy marketing efforts frequently bombard traders with promises of an effortless road to riches via black box systems. Of course, what sounds too good to be true invariably is. I won’t claim that all for-sale systems are not worth their purchase price. Yet expecting to buy a worthwhile trading system that claims to achieve virtually risk-free returns is unreasonable. When in doubt, any systems that show client testimonials with posh new houses, luxury cars, and extravagant lifestyles should be avoided. These disclaimers are not to completely dissuade the individual trader from automated trading; there are certainly advantages that should not be ignored. Perhaps the foremost advantage applicable to many traders is simple: it removes most emotion from trading.  Though automated trading systems require a good deal of manual attention, the extent of active maintenance is most often less than the equivalent manual trading strategy. A trader can more easily let their trades run their full course...continued

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