Forex Robots Versus Manual Forex Trading

You will find traders who trust their money to an automated trading system and others like to pull the trigger, here are the benefits and disadvantages of each…

All you do is follow the trading signals, so it gives you a consistent, objective way of trading the markets and executing trading signals.

The main problem comes when you’ve to apply the system with discipline via losing periods.

Don’t believe what some vendors tell you about trading with small or no losses. A losing period can last for weeks or even months and you have to stay disciplined and maintain executing the system. This means you must have confidence in your system and know how it works, to maintain going until you hit a house run.

There is a view that you can make cash with automated forex trading with small or no risk and not even understand what your doing – this really is rubbish.

There are numerous vendors selling forex robots who will tell you this and the ones that do, normally only have a simulated, made up track record and that’s just a test not real cash.

Annually, having a proven system you can compound about 30 – 100% on the greatest systems; your drawdown will be typically 30 – 50% and last from a few weeks to a couple of months. These are the best systems and what you can expect.

Most people who claim that automated trading is superior to handbook trading forget one key point – any computer is only as great as its rules and there created up by humans also, a human can do something a computer cannot – it can believe for itself. This is a large benefit in trading and most of the main funds, banks etc don’t rely on total automation, they rely on humans and their judgment.

The application of mathematical theories can’t beat the market as many claim – why?

Because markets don’t move to a mathematical formula!

Believe about it, 50 years ago 95% of traders lost and also the same ratio applies today and that proves the point. In the period vast strides have been created in PC processing power and software but it hasn’t helped the losers.

If you are playing an odds market which forex is, the human brain is more powerful than any computer in terms of it has the advantage of independent thought. The myth that computers are superior to humans as traders is absolute rubbish – there as good as the human who programmed them!

So which is greatest?

I believe there are some great forex trading systems and they can make money but I like to run both handbook trades and automated programs. In handbook trading I still have rules but can adjust money management and other parameters and feel in control.

People who say that markets can be predicted are talking rubbish and having a technical system all you’re able to do is react AFTER The event. A human can see the whole picture – fundamentals, sentiment, technical levels and make a judgment Before the event. Don’t under estimate your human brain!

The option of manual or automated trading is a personal 1 but my choice is a combination from the two and all my trading has manual override and in an odds based market, that’s a large advantage to have.