Automated trading systems are programmed to do certain things when the market moves a certain way.
One automated system works when the market is in a channel and automated system works when the
market trends.
When the market changes and does something different than what the automated system was programmed
to do then it doesn't work any more and starts to lose money.
Over the years we have seen automated system come and go. When the automated system reach a
saturation point the brokers shut them down. When the system puts on 100's of trades at the same
price at the same time the brokers and banks can't fill all the orders. In a few seconds more orders
can be filled in the mean time the automated system stops working.
We have seen situations when a trader tries to use several automated systems and has to watch the
market all the time to know when to switch from system to system to try and make a profit. In the end
he makes very little and spends more time than if he has been doing the trading himself.
The bottom line is we have never seen an automated system work for very long. If there is one that
does work, chances are that it is not being sold to the public.
Just some observations
Check out the video below for more clarification.