Automated Forex Trading - Is it a Better Option Than Manual Trading?

By Sonia Kristina

Is trading an automated Forex trading system a better option than trading yourself? Let's take a closer look...

You will lots of advertising which tells you a robot is better than a human at trading and here are some of the common claims made:

1. More Time efficient

They are time efficient and many can be operated in 30 minutes a day or less but manual trading can be just as quick.

2. They Take Care of Money Management and Discipline

No they don't - a trader has to place his stops in the market and it depends on his discipline furthermore, I have seen very few sold forex robots with sophisticated money management they normally don't even bother and leave it up to you or take huge risks.

3. They are More Profitable than Human Traders

There not more profitable at all, there as good as the programmer!

Of course, the track records you seen on most robots would make Warren Buffet proud but the catch is:

There not real, just a back test simulation on paper and because the vendor simply bends the rules to fit the data, most collapse in real time trading, as the data segment never repeats exactly the same way again. We all can all pick tops and bottoms, when we know what happened but that's not real life. Ever wondered why you get financial freedom for $100 now you know why.

There are some good solid real time track records from the best robots and they tend to be on par with the best manual traders with no clear cut winner.

4. They are based on Complex Mathematical Formulas

Big deal, since when did complicated mathematics have anything to do with Forex trading success? You're not dealing with certainties in forex, your dealing in an odds game so complexity is not necessarily a help, in fact simple systems work best, as there more robust in the face of brutal ever changing market conditions.

So is automated forex trading software better than manual trading?

The answer is - if you have a good system, you can have an automated one or your own, where you are subjective and both can make you money.

In both instances though you have to be disciplined in application and believe in your system to follow it with discipline.

I personally like a mixture of both. Always keep in mind the proof is in the profit and the best automated software is only as good as the programmer and the method you choose is really dictated by your personality.

FREE ESSENTIAL FOREX TRADING PDF's! For 2 essential free trading Pdf's and more essential FREE FREE Forex PDF's and an exclusive RISK FREE Currency trading Course visit our website.