Thursday, July 26, 2007

In forex, what happens when a well distributed EA issues buys and sells at the same time? -

This is a hypothetical question, but would happen if you had developed an EA that was widely distributed. Specifically, I m wondering how the markets would react when enough people are all buying or selling huge 100 lot trades all at the same time. What happens when there are 1 million, 1 billion, 1 trillion users all running this EA? If you had an EA that was widely distributed and millions of traders use them 2 things would happen: 1 - The EA himself would become a profitable EA for some time, not because this EA has some value itself, but because lots of people were using it, and were all buying and selling the same currencies cornering the market (or almost manipulating the market). 2 - If this EA gets too widely distributed it will certainly stop working. First of all the market is now different with all of the buys and sells at the same time made by the EA. So, since the market is radically different, the EA won t be able to spot the same quality of trades that is used to. Besides this most of the people are usually wrong and lose money, so if you have millions of traders following an EA, you can be sure it won t work anymore. The EA will probably lose all the money it made on the previous years. I myself use an advanced EA which is very accurate and made me over 250 pips in the last week only. At first i wasn t trust in it but being has 60 day money back guarantee (Totally risk free) encouraged me to buy it and try on demo, then live trading, Really I liked it and recommend it now to all my close friends. you can read more about its features and sometimes give offers at : http://www.ForexTracers.com Best Wishes, EA won t be as effective as before since too many people will find out what the system is all about. But at the moment when everyone is buy/selling using EA, EA will just belly up for some people with all the traffic. What is EA? In the FX markets any SELL order to get executed should match a BUY order.

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