Market Watch
Those with sma ll amounts to invest, search the internet in hopes of finding something else than their mutual fund heav y 401k that is slowly losing.
Some wi l l f ind Exper t Advi sor systems that have websites marketing their EAs . Whi le Forex is now regulated, any individual in any countr y can develop an EA and sel l it , professiona l ly or not ,
the
internet i s not yet regulated. So there are t h o u s a nd s of websites p r o m o t i n g some system they
sel l ing ,
are for
To compl icate matters , sel lers
of these EA robots have an interest to say anything to convince you to buy the product .
Regulators have focused on the regulation of brokers and have not considered how to address thi s . Since many of these EA developers l ive in of f shore jur i sdictions, it’s questionable how they might approach
FX
money using the best possible (optima l) envi ronment . They then begin the search for the ‘broker that wi ll run my EA’. The problem with this is that:
• Broker s do not have
the code to the EA they are t rading so if a trade doesn’t go r ight, they do not have per fect information. •
have information about how the i s
Coder s of EAs do not broker
setup,
A situation has formed that EA traders and developers are mostly blaming brokers, and brokers are mostly blaming EA traders and developers for problems
which they receive the sa le pr ice.
The concept that investors are seeking information to do their own trading is compel l ing , that investors are becoming l ike DIY homebuilders who would choose to do thei r own investing rather than just out sourcing it to a large company. However, thi s presents a large conf l ict and potential problem, as many of these investors may not have the requi red education and training in information ana lysis to make a qua l i f ied deci sion on thei r port folio.
regulation of this part of the market . Some suggestions might include a ‘regulated’ network of developers who choose to par ticipate in a set of standards, simi lar to how the NFA regulates managed account s
(CTAs). But
concepts like this have not been di scussed in any comment let ters .
Unique problems wi th current model
The customers who purchase these EAs obviously want to
trade them and make and
Meta Trader 4 ser ver ha s thousands of set t ings
that
can impact p e r f orma nce of the EA • O t h e r
factors such as computer hardware, network connections , and other va r iables come into play that can impact per formance .
A situation has formed that EA traders and developers are most ly blaming brokers, and brokers
are most ly blaming
EA traders and developers for problems, with lit t le critical information exchanged between them.
Technical problems Trading automated robots (EAs)
FX TRADER MAGAZINE January - March 2012 75
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