Automated trading has always been of mixed feelings: some love and those who hate him. In all likelihood, both views – the super positive and the hyper negative – are wrong. Each of the currents of thought carries forward engaging and shareable opinions. Still, both focus too much on the most beneficial aspects for them, effectively preventing themselves from having a broad and correct overall vision.
The purpose of this article is precise to clarify without siding with one or the other front. We cannot evaluate the pros and cons of automatic trading without first having established what we are talking about. Technological development has made available to man (trader) the possibility of mechanizing his operations. Through more or less complicated programs, it is possible to code the strategies that traders have applied manually on the financial markets for years to profit. These “machines,” more appropriately called Expert Advisor (EA), or recommended forex ea (ea forex แนะนำ which is the term in Thai) suitably loaded on trading platforms – such as the Metatrader 4 – allow the trader to delegate his work to software. But can these programs be trusted? This is the most common question people ask themselves when faced with an EA for the first time. And it is also the question from which all the pros and cons descend that feed the two factions – for and against – of which I told you in the previous paragraph.
Automatic Trading: The Pros and Cons
Having made the necessary premises, let’s now evaluate the pros and cons of automated trading.
The three main pros of automatic trading:
- Zeroing of the emotional component.
- Iron discipline.
- Continuous operation.
The three main cons of automatic trading:
- Holes in the system.
- Poor reading flexibility.
- Excessive optimization