Forex Trading Bot Review
A debate on manual trading vs Forex robots is a never ending one. Both sides swear by their methods, and throw around graphs showing incredible gains on their accounts. However, the answer is not so difficult to understand, once you get the main problems with both approaches, and how to solve them. Let’s have a look.
Problems with manual trading
There are two main problems when trading manually. First is trading psychology. Since you’re trading manually, you are your worst enemy. Exiting trades too early/too late, wishing just a couple of minutes later, that you’ve stayed in, or got out, sounds familiar? Revenge trading, anyone? There are a lot more of typical mistakes, but these probably are most famous. When trading manually, you must have a very calm mind, and be confident (but not over-confident).
Second is that you should actively monitor the market. Now, this might not be a problem for professional traders (either the ones who trade for institutions, or ones that make their living on Forex), but that’s never the case for beginning currency traders. There are a couple of solutions, like trading long time frames – for example daily graphs allow you to check in on the market only once per day, or trading shorter time frames, but only in strict hours.
Problems with Forex robots
Main problem with Forex robots is that – well, they’re robots. They’re programmed to do certain things on certain circumstances. Once the circumstances are not what the bot things they are, you’re in for a beating. For example, one of the popular robots (I won’t name it though here) is designed to work in a trending market. That’s all fine, but it cannot always 100% tell whether the market is trending or not, and when the market is just going sideways, that robot will empty your account very fast, because it will still try to trade its built in formulas, designed for trending markets.
Conclusion
There’s no right and wrong. If you trade manually, you better have a calm mind and a sound plan. It must be your priority goal – to be calm and confident about the trades you enter, and not making emotional decisions if the trade goes one way or another – instead, you should wait and exit according to your system.
If you trade with bots, please, for your own sake, become familiar with how and when they work. Never allow them to trade conditions under which they don’t perform well. Don’t believe any backtests bot makers show you, make tests real time, on demo account yourself. This way you will save you your money, if worst comes to worst and that bot is just another hyped peace of garbage.
Always remember, it is best to live to trade another day.
I have traded currencies for some time already – I’m not one of these outsourced writers who just do “research” on Google and chug away word after word, article after article. So check out Forex Trading Tutorial for a product that I do actually recommend.
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