This discussion thread is about advantages of trading robots over manual trading.
I simplified my thesis for you:
1. For any trading you should follow trading plan
2. Such trading plan has to strictly define rules when to enter trade, when to not enter trade, when to exit trade and risk management.
3. Well defined trading plan is a must. Well defined trading plan is executed better by robot in all aspects - precision, speed, timing. Unlike human robot is not affected by emotions, sleeping, thoughts or illness.
Another advantage is diversification. I have built portfolio of trading systems and to diversify risk there are different trading systems, pairs, brokers and trading times. Of course such portfolio has to be traded by robots.
It is also much easier to backtest the robot for last decade compared to manual trading. There is no way you can optimize complex trading system manually.
You opinions are welcome.
Tomas
I simplified my thesis for you:
1. For any trading you should follow trading plan
2. Such trading plan has to strictly define rules when to enter trade, when to not enter trade, when to exit trade and risk management.
3. Well defined trading plan is a must. Well defined trading plan is executed better by robot in all aspects - precision, speed, timing. Unlike human robot is not affected by emotions, sleeping, thoughts or illness.
Another advantage is diversification. I have built portfolio of trading systems and to diversify risk there are different trading systems, pairs, brokers and trading times. Of course such portfolio has to be traded by robots.
It is also much easier to backtest the robot for last decade compared to manual trading. There is no way you can optimize complex trading system manually.
You opinions are welcome.
Tomas
I like what I trade, I trade what I like