Should I use a Forex trading robot to trade Forex?
This question on whether to use Forex robots and EAs or not, has been asked by most traders (especially the average traders).
There are some traders that love using an automated trading system and some that don’t don’t . I respect everyone’s view when it comes to using a robot or not and I will love to share my opinion.
Why You Should Care About Forex Robots
From my experience it is true that robots can be a mess sometimes, making many pips today and crashing the account the next day. I am sure you’ll get angry and frustrated to see this happening to your trading account.
So, does this mean that automated trading is bad and not possibly profitable? I wouldn’t say that. Let’s think deeply about automated trading systems and the strategy robots are built on.
At the beginning of this post, I unveiled the various strategies that Forex traders use and also, I shared the flaws of each.
So, when you and I see an automated trading robot/system blowing off an account by using any of the common forex trading strategies, does this mean it Is the robot/system’s fault?
Well, we might say it is the robots’ fault. But my question would be: “If you were to trade manually using the same strategy, won’t you crash the same account the same way?”
The answer is YES you will definitely blow off the same account trading manually because you used the same strategy and the same rules like the robot or automated system.
What I’m trying to say is that Robots/EA’s or any automated trading systems are not to blame for any trading accounts that crash or one that doesn’t make profitable trades. It is the strategy that failed not the robot.
Don’t forget, that the Meta-Trader platform you are using to trade is also automated.
Trading is not like before where traders will converge together to start watching price, then making a telephone call to a broker to execute a trade.
Things have changed, but sometimes as traders, we really love our decisions that we can’t dare attach a robot to our account which I respect.
But thinking about the benefits of using an automated or semi-automated system that is designed exactly according to your rules or strategy can go a long way to executing your trades perfectly.
Sometimes you may feel a News event will be coming out which may affect your strategy or your automated trading system. You can turn it off and that’s possible.
You may even switch a robot to only a buy mode for a certain period of time because the trend is up and switch back later.
Don’t forget you don’t know when the market will meet your conditions or rules but you can have a semi-automated robot/EA that will let you know, so that you can trade them manually.
On the other hand, you can have a fully automated trading system that will execute trades automatically based on your exact instructions and rules.
It will be so bad if as a trader you got a robot/EA, and went ahead to attach the robot to your trading account without scrutinizing or understanding the underlying strategy the robot was built on.
The first law of investment is investigation; if you know that the trading strategy(s) a robot is using on your trading account is following your rules, you’ll be comfortable with it, isn’t it?
Note: Anytime a robot made a lot of profit for some traders and makes losses for another set of traders, I think it is not about the robot used, it is about the strategy the robot was built on.
So, craft out your strategies, automate them and make them work for you 24/7.