As someone who has struggled with discipline in my manual trading, as I believe 90%+ of traders do, I prefer a good automated EA. Now, that is hard to find, but once you find it it can do wonders, at least it has done for me.
I have tried several EAs, but most of them led to losing money, despite good performance at the early time as time goes just drained funds, so I back to manual trades for simplicity
Hello Friends I am starting this thread to discuss about Automated trading and manual trading which type of trading is best and why? As technology has grown to a new level now a days it is making the life simple for humans with the help of machines .So in field of financial market we have Algo trading,EA etc. So which one you think is the best Modern automated trading method or old classical manual Trading If you are a Manual trader or an EA user Please share your experience,Suggestions and opinions about manual trading and Automated trading..
Ignored
Hi everyone,
I'm Grigore, nice to meet you.
I want to answer the question asked 11 years ago.
According to my decades of experience, in the world of Forex Trading, it is more convenient to use automatic trading systems.
Sure, you can have an excellent trading strategy, but if you don't have an excellent strategy even in terms of psychological stress, I guarantee you that you will never be able to make a consistent profit in the long run.
Human psychology is so twisted, especially when real money "real trading accounts" is at stake and not free money or fake money "demo trading accounts". You will find yourself using a strategy that could even prove profitable, but the moment your balance goes negative by $10 you will start to wring your butt and have strong conflicting emotions, which will lead you not to make rational decisions, closing your position impulsively.
For this reason I strongly recommend you use automatic trading, which will help you not to be influenced by your emotional side and to finally be able to earn money with trading.
There are two choices, I have to learn to program and create my own expert advisor or get lucky and find a person who will sell you his robot or rent you his strategy via signals.
In fact, since I started trading I immediately understood that I had to aim for the creation of expert advisors. So I started studying the MQL5 programming language, managing to create any type of robot, realizing that not all the strategies I came up with were profitable. After much effort I managed to create multiple Expert Advisors, which generate profits for me in a totally automatic way without the influence of the human psychological factor.
So, if I have to choose, I choose Lifelong Automated Trading!
Joined Aug 2022
|
Status: I am rich, happy and healthy.
|172 Posts
hey there!
interesting convo starter here. so, when it comes to trading, both manual & automated got their pros n cons. if u like having control & making decisions based on ur gut, manual trading could be more ur jam. it's all about that hands-on approach, feeling the market vibe, y'know?
on the flip side, algo trading, or using eas (expert advisors), is like having a robot sidekick. they don't sleep, don't get emotional, & can handle a ton of data at once. great for those who wanna make moves based on stats n patterns, 24/7.
imo, it rly depends on what fits ur style. like being in the driver's seat? stick to manual. love tech & efficiency? go automated. either way, trading's a game of strategy & risk, whether u're clicking the buttons or coding the rules. what's ur take? u dig the thrill of the trade, or do u prefer to let the algorithms do their thing?
if u're into manual trading, ur win rate might vary a lot cuz it's all about human judgment, right? sometimes u nail it, sometimes u don't. it's part art, part science. u gotta be on ur game, reading those charts n news like a pro.
now, with automated trading, it's a different vibe. these algos are programmed to follow specific rules n patterns. they're all about consistency. if the strategy is solid, the win rate can be pretty stable. but remember, no system's perfect; even the slickest algo can hit a rough patch when the market goes wild.
in both cases, it's not just about the win rate alone, but how u manage ur wins n losses. big wins can cover a few small losses, or lots of small wins can keep u steady. it's all in the strategy. what's ur style? do u play it safe or go big? hoping bro from 2013 will answer
It's likely because most people try EAs, and do not add any effort on making them work. It's understandable since it's not their EAs and they cannot change them much without having the source code, or the knowledge of its inner workings. That's why buying someone else's EA won't get you far.
Best approach would be to make one of your own, understand EXACTLY how it works, and then adapt it to market conditions. There can never settings made once-and-for-all - the market keeps changing the rules, and if you encounter the unexpected it will wipe your account off.
hey there! interesting convo starter here. so, when it comes to trading, both manual & automated got their pros n cons. if u like having control & making decisions based on ur gut, manual trading could be more ur jam. it's all about that hands-on approach, feeling the market vibe, y'know? on the flip side, algo trading, or using eas (expert advisors), is like having a robot sidekick. they don't sleep, don't get emotional, & can handle a ton of data at once. great for those who wanna make moves based on stats n patterns, 24/7. imo, it rly depends...
Ignored
Hi dear,
That's right, both manual and automated trading have their pros and cons. According to my experience I can tell you that it is better to study programming and let the robot handle the negotiations.
I take my example (this doesn't mean that it's good for everyone), in addition to the fact that I like or don't like the emotion of trading, I don't like spending a lot of time in front of the PC, this absorbs a lot of energy which for the moment I prefer to dedicate them to my business as an entrepreneur.
I want to clarify one thing, a strategy that is used in manual trading can also be used in automatic trading, it all depends on knowing how to design the robot. Yes, trading is a game of strategy and risk, it can be compared to any activity carried out by living beings on earth, every individual every time he makes a decision risks that it could go well or that it could go very badly, but it all lies in be good at reducing the risk as much as possible.
Practical examples:
A thief risks ending up in prison much more than a person who does not steal, this does not mean that a good person cannot risk going to prison (we have seen many cases of innocent people convicted), so the risk exists here too, but it's different.
Before crossing the road you look around and realize that no car is coming, by doing so you significantly reduce the possibility of being hit by a car, here too nothing takes away from the fact that the risk has been totally eliminated, because from one moment to the next On the other hand, there is always the possibility that a distracted person or someone under the influence of something could overwhelm you.
Heyas there! It's likely because most people try EAs, and do not add any effort on making them work. It's understandable since it's not their EAs and they cannot change them much without having the source code, or the knowledge of its inner workings. That's why buying someone else's EA won't get you far. Best approach would be to make one of your own, understand EXACTLY how it works, and then adapt it to market conditions. There can never settings made once-and-for-all - the market keeps changing the rules, and if you encounter the unexpected it...
Ignored
Hi dear,
I can guarantee you that if a trading strategy is valid it is not necessary to have the source code. The important thing is that a seller must add input variables, which will give the possibility of being able to insert some values and carry out tests.
You are absolutely right that the settings cannot be used once and for all, because the market never has the same rules and you will never find something repeated in the same way several times.
In fact, a very important thing to do is to optimize the robot's parameters, thus reducing the risk that a sudden event could create problems for your account.
{quote} Hi dear, I can guarantee you that if a trading strategy is valid it is not necessary to have the source code.
Ignored
I wasn't saying it would not be valid, I'm saying you, as an owner of YOUR strategy, need to know nitty-gritty details about each and every bit. That's the only way to minimize risks and avoid blaming the maker that he/she didn't account for something unexpected, it's your responsibility, and no-one else's.
Of course, not sticking to the absolute, you can indeed make the necessary checks on the automated robot via historical tests, measure your risk/reward ratio and see what author may have to say about the settings.
A word of caution of about optimization - it's a double-edged sword in terms of over- or under-optimization. Generally, to lower the risk of over-optimization (which usually lead to better performance in terms of profit, but coupled with higher risk), when under-optimization will lower the profits and have a lower risk.
It doesn't necessarily have to be one or the other. You could trade mostly manually but use a bot that you only turn on right before you want to enter to get the fastest execution. For example perhaps you are waiting for the next candle to print and want to take an entry at market if it matches a certain criteria.
Also as others have mentioned you can have a bot that you tweak and adapt to the current market conditions (and I think this is probably the only way to make a mostly mechanical system work).
So you can have anything in-between 0 and 100% automated and I think either extreme can be improved on by moving towards the center.
NinjaTrader/cTrader Coder, @backtested on telegram
