Automatic Systems

The automatic systems are suitable for people who lack the time or find it impossible to be disciplined in trading.

Robots or automatic trading systems (expert advisors) execute orders by themselves according to certain parameters previously analysed by experts in depth.

Example 1: Crossover of the daily closing price of Oil to its moving average of 50 sessions

• From January 2, 2008 to June 10, 2009
• When the close is higher than the moving average: LONG (0.1lot)
• When the close is lower than the moving average: WE CLOSE
  • Profitability using this strategy: + 73.93%
  • Profitability using (typical) buy and hold strategy: $97.35 falls to $ 70.62 = -38%

Example 2: Stochastics crossover applied to the daily chart of the SPA35

• From January 1, 2007 to June 10, 2009
• When Stochastic (2,2,2) is less than Stochastic (3,2,2): SHORT (0.1lot)
• When Stochastic (2,2,2) is greater than Stochastic (3,2,2): CLOSE
  • Profitability using this strategy: + 37%
  • Profitability using a (typical) buy and hold strategy (or quite the opposite, open a SHORT and hold): From 14,349 it falls to 9,623 = -32% (or + 32%)

Example 3: MACD, Stochastic, Moving Average and 1-Hour EURUSD stop loss

• From June 10, 2008 to June 10, 2009
• When the MACD (55-89) is> than its signal (5) and the Stochastic (K% 8.21)> than its average D% (8): LONG (0.1lot. Volume!)
• When the close of a 1H candle is <than its 20-period Moving Average and the Stochastic (K% 8, 21) is <than its average D% (8). Or jump stop loss at 100 pips: CLOSE
  • Profitability using this strategy: + 9%
  • Profitability using a (typical) buy and hold strategy: From 1.5455 it falls to 1.3964 = -9%