Automated Forex Trading Robots Or Manual Futures trading - Is There A Happy Medium?
Much has been written about the virtues of Automated Forex Trading Robots, some of it self serving nonsense used to promote specific products in which the authors have a vested interest, with the thrust of the articles guaranteeing automatic futures profits while the investor improves his tan at the local beach. We should start by providing a definition of a trading robot, also referred to as an "expert advisor". An expert advisor is a computerized futures trading system which has been developed through the use of "artificial intelligence", and which follows a specific investment regimen. The system does not deviate from the inherent program instructions at any time, which eliminates the human factor.
My honest opinion is that common sense and judgment should always have a part in trades. It is possible to find a quality EA or "Forex trading robot" but you have to find one that is compatible with your strategy and your personality. You need a trading robot that can analyze your trades, preform your entries, stop losses, adjust to the different market conditions, and effectively close trades, without using emotions. You can actually find some EA's that allow you to program in your own trading strategy or allow you to adjust its settings in a way that its built in strategy works much like your own.
Before you commit to using one of these emotionless tools, you should first consider the following questions: How long was it back tested for? What is its proof or history of winners and its percentage of losers? What is the reputation of the company offering it? What exactly is it designed to trade? It is advisable to be cautious of claims that state a robot can trade anything in the markets. Take the time to research these claims by doing a Google search and checking it out on the different blogs and forums.
However, I do feel that an EA can be beneficial, if used in the right manner, for an experienced trader. Not only will it add to his trading strategies, but it will also give him another indicator to confirm his trade analysis. In other words it could help him have more confidence when trying to decide whether to enter a trade or not, a decision even experienced trader struggle with!
I do not feel it is at all wise to totally rely on an EA to trade on an account, without any human input. Think of it this way: would you get onto a plane if you knew that the entire flight would be taken care of by an "auto-pilot" and no one would be watching over it? I know I wouldn't!
It is vital to understand that no Forex trading robot can fully guarantee you will be able to make a profit using it. Are you still thinking about using one of these robots? If so, take the time to thoroughly read the vendor's "Terms and Conditions" or "Disclaimer Notice" and make an informed decision on your own. - 23199
My honest opinion is that common sense and judgment should always have a part in trades. It is possible to find a quality EA or "Forex trading robot" but you have to find one that is compatible with your strategy and your personality. You need a trading robot that can analyze your trades, preform your entries, stop losses, adjust to the different market conditions, and effectively close trades, without using emotions. You can actually find some EA's that allow you to program in your own trading strategy or allow you to adjust its settings in a way that its built in strategy works much like your own.
Before you commit to using one of these emotionless tools, you should first consider the following questions: How long was it back tested for? What is its proof or history of winners and its percentage of losers? What is the reputation of the company offering it? What exactly is it designed to trade? It is advisable to be cautious of claims that state a robot can trade anything in the markets. Take the time to research these claims by doing a Google search and checking it out on the different blogs and forums.
However, I do feel that an EA can be beneficial, if used in the right manner, for an experienced trader. Not only will it add to his trading strategies, but it will also give him another indicator to confirm his trade analysis. In other words it could help him have more confidence when trying to decide whether to enter a trade or not, a decision even experienced trader struggle with!
I do not feel it is at all wise to totally rely on an EA to trade on an account, without any human input. Think of it this way: would you get onto a plane if you knew that the entire flight would be taken care of by an "auto-pilot" and no one would be watching over it? I know I wouldn't!
It is vital to understand that no Forex trading robot can fully guarantee you will be able to make a profit using it. Are you still thinking about using one of these robots? If so, take the time to thoroughly read the vendor's "Terms and Conditions" or "Disclaimer Notice" and make an informed decision on your own. - 23199
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posted by X - Men @ 12:26 AM
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