Forex Kung Fu

Welcome to Forex Kung Fu - where I (Brian Toovey) attempt to chronicle my experiences deploying automatic trading systems in the Forex arena.

I have settled in on a trading platform which seems to be the best tool for automated forex trading: Metatrader 4:

http://www.metaquotes.net/

It allows for automatic trading in the currency markets. Basically you can plug in third party “Expert Advisors,” or trading systems that third part developers have designed to execute trades for you.

For my purposes, I will be starting testing with these three EA’s, or Expert Advisors:

Pip Boxer
Double Play
FxBandit

I will be rolling an IRA worth $5900 from TDAmeritrade to a Forex account on Monday. I will be testing for two weeks on a demo forex account until I am sure the EA’s variables are set right.

What has me a little worried about process involved  is leaving a Windows XP machine on 24×5. I will be setting up a dedicated server at a hosting company to mitigate the power going out at my house or my Internet service failing.

I will be posting daily, weekly, and monthly results as they occur.

My long term plan is as follows:

1) Spend the next six months becomming intimate with every process of automatic trading in a Forex environment.

2) Begin to develop, with the assistance of other smart people, my own Expert Advisor. (If your interested in joining in this effort please sign up!)

3) Move off the MT4 platform and onto my own custom trading platform designed to run on a Linux cluster. The system will comprise two main parts:

a) A self learning back test environment. Basically I want the cluster to analyze and tune different parameters of the custom system to self-learn and self-improve the strategy.

b) Order execution. It must be fast and support all the major forex exchanges.

I very much welcome you follow me down the rabbit hole. Please leave comments or suggestions, as long as they are half way intelligent.