Why Forex Auto Trading Is Every Forex Trader’s Dream?

Discretionary and manual trading have existed since the beginning of trading and, as far it goes, it always will. But many people are shifting toward forex automated trading. For starters, you can have the auto trading solution trade your strategy for you if you are a Forex trader with a profitable approach.

The dream of the fully automated expert advisor / trading robot system goes something like this: “If you buy our auto trading system, you will build up immeasurably profits in your trading account.” It seems too good to be true! Let’s find out why.

The Truth About Forex Auto Trading

Most movie traders perceive automated trading as some easy way to make immense profits. Automated trading only saves your manual energy, but it works only on the instructions that YOU put into it. It is like a robot shown in movies – if you code it for a good purpose, it’ll bring good. If you code it with bad ideas, it’ll bring destruction. 

In short, if you have traded with your strategy manually for almost 2 years, and have made consistent profits, this strategy when put into an automated trading software will bring in immense profits. But if you are a beginner whose strategy has brought in profits only 2-3 times out of 100 trades, then automated trading softwares won’t work magic and change losses into profits. You need to first work hard to understand the market. 

Many of these robot expert advisor trading systems require very large stop losses, so large that one losing trade will wipe out a significant portion of your account, but these system sellers rarely explain this to you. 

The only way to truly adapt to changing market conditions effectively is with the discretionary ability of the human mind trading from the natural price action of the market. When market conditions change from favourable for the system’s rules to unfavourable, the system will result in losing trades.

All you have to do is take a look at the most successful traders throughout history. Were they totally reliant on computerised trading platforms? No. A human being, and more importantly, a human mind, is behind any exceptional trading performance, even if they do use some sort of trading software.

Conclusion

Experienced and knowledgeable traders approach the markets with discretion and judgement. In other words, they use their own judgement in the market rather than “expert advisors” or automated trading programmes as they can fail. You can incorporate an EA into your trading strategy if it is tested well. But keep an eye on it and use your knowledge always in making decisions as your analysis can be much stronger.