"Generation 2" autotrading demo
A few days ago I decided to terminate auto trading using TradeBullet on my PC at home. Supposedly the technical problems I encountered are addressed in what C2 calls "generation 2" auto trading. This (relatively) new form of auto trading means that the signals go directly from C2 to the broker, bypassing the PC at home (the latter being not necessary anymore). Unfortunately this setup does not work with my broker, Interactive Brokers, and the only alternative for stocks is Optionsxpress, which charges commissions starting at $9.95/trade. Given the size of my equity, these commissions are not attractive when trading extreme-os (with dozens of trades per month).
However, "generation 2" auto trading is also available for forex, in which case C2 sends the signals directly to BulldogFX, an introducing broker for FXCM. I'm going to give this a try on a free demo account and see how well the signals execute. Positive forex is a C2 system already on my watchlist for a few months, so I just subscribed and set up auto trading such that the signals will be executed in my BulldogFX/FXCM demo account. Of course this does not involve real money and therefore the profits/losses in the demo account won't affect the "Real life" equity curve, shown on the right.
4 comments:
That's an interesting progression for C2 - and a good one - and follows the age old adage of "cut out the middle man" to makes savings. In this case you're saving time and therefore one hopes getting a better price. I look forward to seeing your results on the FX demo account.
yes, it supposedly is a lot faster than "generation 1". The cost are 1 pip per minilot, so it's quite a costly solution for high frequency scalping systems (where the speed advantage would be most valuable). For "Positive Forex" the costs are not really a problem as it's a swing trading system.
Does that mean they effectively add a pip to the spread for the privledge of going direct?
Correct. By the way, TradeBullet (generation 1 autotrading) costs $50/month, so if you don't trade that much generation 2 can actually be cheaper than generation 1 autotrading.
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