is a debate among the forex traders if they should use the automated trading
software in real life trading. Though it is not proven how much efficient
trading software can become in this volatile market, many traders like to
depend on automated software to interpret the market data and place trades.
With the increasing use of technology, every day more and more people are
coming to Forex market with automated trading software. Even there are many trading
software which prides them with the use of automated trading software that, as
they tell, is as much intelligence as human traders. Some new traders often buy
an expensive automated trading system to make a huge profit from this market.
But when it comes real to life trading there are other trading parameters that
you need to take care in order to make profit consistently. You might buy a
million dollar trading system but there is no guarantee that you will make
money. As a new trader, you need to understand the movement of the financial
asset to remain profitable in your trading career.
Should you use it or not?
is the most debated question among the traders of Forex. Many people are in
support of the automated trading software. They believe that they can make more
precise trades when they have a helping hand. But they should keep in mind that
this market is always changing and this automated software is only a string of
command made by the programmers. But the expert in the forex market never relies
on the automated trading system rather they consider it as their helping tools.
There is something called sentiment analysis to find quality trade setup. So if
you trade the market with a mechanical trading system then you are ignoring the
sentiment analysis which will cost you heavily in the long run.
When you should use
you are a busy trader and do not have time to interpret the market data for
analyzing the market trend, you can use the automated trading software. Most of
the time, Forex trading platforms offer the services of Forex intelligence and
tell the traders it will improve their trading experience. Most of this
software is made by the past history and analysis of the particular trend of
the market. You need to enter your strategy, your trade and the software will
calculate the best result for you when to enter the market and what is the
expected profit. But in options trading
world no one is blindly following the automated trading system. They all check
the market conditions and schedule of high impact news release before
activating their EAs. To be honest this system works best when a human being
takes a partial control of the software but when it goes in solo mode chances are
very high that you will lose a big portion of your trading account.
When you need to avoid it
is not good for everybody. Though traders can advance their trading with the
help of software, it is still in the developing process. It is not a true
intelligence and it can only act on certain commands. If the market is
experiencing volatility, the software may not read it and show you the average
signal of the market. Moreover, if you are trading the market with the very
short timeframe, you need to use on your own analysis and strategy. The bots
are not aware of the news release. You need to use your own strategy and place
your trades with the right plan. Human traders are always better than robots.