Monday, July 12, 2010

Manual Vs Automated Trading

It is completely up to you whether to trade manually or with a robot. Both approaches have its own prons and cons. Some people manages to use both of them. For example you can set a trend in a program and it will try to catch the best moments for only buying or selling.

Manual trading, in theory, can make you much more money than a robot. If you look at forex as a full time job then this choice will probably be better for you. It is necessary to follow media if you trade by hand. If you try to concentrate only on technical analysis then robot will beat you anyway. With trading by hand you can feel the market. Agencies like Moody, S&P and Fitch together with high-ranking officials can easily move the market. Keep an eye on economic calendar all the time. Almost every new published economic indicator have its influence. You have to be prepared for any news and react accordingly.

Automated trading is very simple if you have a proven to work expert advisor. But where to get one? Actually I think they are very expensive and you won't be able to buy one on the net for 10-100$ . There are a plenty of offers on the net, but I won't believe to any of them. It's all because of demand and supply. If someone would have a profitable advisor he would be a millionaire. If some people provide a profitable chart it doesn't mean a thing! I personally know a MQL4 shortage making it possible to create a chart without a single loss.

Take your time to write a profitable robot or order one from a programmer on a site like http://www.odesk.com/ , but I strongly recommend you to learn MQL4 and do it your way. Before I made my profitable EA i've tried hundreds of different algorithms that came up to my head every 5 minutes. It is really fast and easy to write an EA and test your theory on history by robot.

After all you need a hosted server or you'll have to keep one of your computers 24 hours enabled with MetaTrader software running.

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