There's always been a debate about what kind of trading is better, automated or discretionary. People within the Currency trading community read online trading reviews , trading articles, watch trading videos, and are always trying to find as much information and tools as they can.
The thing is that many of these traders come to be confused with the gigantic quantity of information accessible on the internet. Moreover, frequently they are tricked by so called “Forex gurus” who many times don’t even trade the markets and are actually just web marketers.
My team of traders and I have found that to be successful , a FX trader must find a harmony between automated trading and discretionary trading. You are about to learn 4 tips on how you can effectively combine automated FX trading with manual or discretionary trading.
Machines are simply machines and human involvement is actually essential:
The usage of technology has revolutionized our standards of living and has converted our world into a world of convenience. Due to this most people are always looking for instant gratification, having said that; Fx trading is the wrong place to look for it.
Several people assume that buying a trading robot is going to change their life and make them rich instantaneously. A trading robot might produce you decent profits but to really maximize its performance human participation is needed. The best way you can enhance your automated software’s overall performance 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 make mistakes too! :
Automated trading systems are based on complex mathematical algorisms that can be affected by any modifications you make to the trading system’s parameters. By way of 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 uses.
How to use automation to put your emotions aside:
Automation can be extremely helpful because it enables 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 away.
Allowing your emotions get on the way is a mistake that most FX traders make. When you take emotional trading decisions you are very likely to make unreasonable decisions and take higher (and unnecessary) risks.
How to put together a balanced trading plan and approach:
Putting together a successful trading plan that has a ideal balance between automation and discretionary trading is easier said than done. Nonetheless, one can accomplish this by just modifying the trading system to his/her own personal trading objectives 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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