There has always been a debate about what kind of trading is better, automated or discretionary. Many people within the Foreign exchange community read online trading reviews , trading articles, watch trading videos, and are always trying to get as much information and resources as they can.
The problem is that many of these traders become overwhelmed with the massive amount of information accessible online. In addition, frequently they are misled by so called “Forex gurus” who often don’t even trade the markets and are actually just web marketers.
My team of traders and I have discovered that to become profitable , a trader has to find a equilibrium between automated trading and discretionary trading. You are about to learn 4 tips on how you can efficiently combine automated FX trading with manual or discretionary trading.
Machines are only machines and human intervention is needed:
The utilization of technology has totally changed our standards of living and has transformed our world into a world of convenience. As a result most people are always looking for instant gratification, nevertheless; Currency trading is the wrong place to look for it.
Numerous people assume that buying a trading robot is going to change their life and make them rich right away. A trading robot might produce you decent gains but to really maximize its performance human participation is needed. The best way you can enhance your automated software’s results is through the implementation of discretionary trading.
Some of the most successful discretionary techniques that can be used to improve your robot’s performance are: discretionary take profits, scaling out your positions, reducing a positions risk, among others.
Machines commit mistakes too! :
Automated trading systems are based on complicated mathematical algorisms that can be impacted by any alterations you make to the trading system’s parameters. For example, if you double the risk that the trading system takes per trade, this could jeopardize the results and even the money management strategy that the system utilizes.
How to use automation to put your emotions aside:
Automation can be very helpful since it allows you to automate the execution of your trades and even the risk control tasks involved in trading.
When you let your automated trading strategy to measure the best entries, exits, stop loss levels, and take profit levels, you will be able to put your emotions aside.
Letting your emotions get on the way is a mistake that most FX traders commit. When you take emotional trading decisions you are more likely to make illogical choices and take higher (and unnecessary) risks.
How you can put together a balanced trading plan and approach:
Putting together an effective trading plan that has a perfect balance between automation and discretionary trading is easier said than done. On the other hand, one can achieve this by just adapting the trading system to his/her own individual trading goals and personality,
Make sure to always perform proper backtesting, read online trading reviews, and be constantly developing your trading skills. As I always tell my traders, when you put it all together making money from the Forex becomes second nature.
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