Automated trading

What are the advantages and disadvantages of employing automated trading systems in the forex market, such as forex robots or expert advisors? How dependable and effective are these strategies in producing consistent returns for traders?

Well i was wondering about your question and look what I found: “Automated trading systems, such as forex robots or expert advisors, provide benefits such as reducing emotional elements, trading 24 hours a day, backtesting capabilities, and quick trade execution. They do, however, have drawbacks, such as reliance on previous data, technical faults, over-optimization risks, and poor adaptation to unexpected events. To ensure the effectiveness of automated systems and make educated decisions, traders should thoroughly examine and monitor them”.

The advantages of employing automated training systems is that the only emotional challenge to you is when the systems fail to make profits as expected.

It is a hit and miss enterprise, but you could get lucky for a while.

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It cuts out emotive mistakes.

For example, if you write a robot to follow a strategy it will also stick to the strategy without any deviations. Whereas a human using the strategy may decide to place a trade if 9 out of 10 parts of the strategy fits as they just want to get a trade going rather than waiting.

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I’d like to hear from a trader - any trader - who has become wealthy from activating an EA and walking away.


Don’t think that’ll ever happen!

Even with a deployed EA you still need to check the charts etc and ensure its deployed and stopped at the correct times. You can’t just deploy one walk away and hope it cashes in for you. As the markets change different EA’s would need to be deployed. The human factor is still the most important factor when using any trading system whether that be traditional trading or EA trading.


ok, I want to add my 3 pesos.

This quote is partially true, EA’s gives you benefits such as reducing emotional elements, trading 24 hours a day, backtesting capabilities, and quick trade execution.

we have only previous data, which we can use to build strategy automatic or discretionary trading.

discretionary trading is free of technical faults?

there are tests which minimize over optimization like Monte Carlo or WFM

I am sure that discretionary traders can “predict” unexpected events

EA’s are not “magic box”, if you expect millions from random EA you will be disappointed

market is change over time, so it is not possible to build one strategy which will be profitable forever. It is a problem discretionary and algo traders, .

discretionary systems can’t be back testing because every transaction is different, basically you don’t know what to expect in the future.

there is no such thing like “set and forget”

Would be interesting to see! :blush:

Ook, thank you @Lee-me
the info you shared is great, also thank you @ProfesorPips for adding the extra info.
What EA you suggest and how can I realize one EA is good and effective? I should use it and check whether it’s good or not?

Thank for sharing these info with us @ProfesorPips ]

I think the easiest way is comparing back test to “real” trading results. When I write real in quote, I mean you can use demo account instead of real account, the most important thing is to put strategy on the market, if results are similar it is a good sign that strategy can be profitable in the future. Please note that back test data should be quality to achieve reliable results.

Just another question. It doesn’t matter if I use Demo or real? Is the condition the same and is it reliable?

Testing on real account is better but you have to open separate account, fund it and prepare for lost cash on this account. Demo account is cheaper option, results will be similar to live account.

Hmm, yeah you’re right. I can’t afford to lose on a real at the moment. The demo is a way better option.

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They are faster than humans, which is one advantage I can point out, and automated systems are at risk

Thank you for raising this important topic. Automated trading systems, such as forex robots or expert advisors, offer both advantages and disadvantages. On the positive side, they can execute trades with speed and precision, remove emotional bias, and provide 24/7 monitoring. However, their effectiveness depends on various factors like market conditions and the quality of the strategy implemented. It’s crucial to conduct thorough research, backtesting, and optimization to find a dependable system. Remember, no strategy guarantees consistent returns, but with careful evaluation and risk management, automated trading can be a valuable tool in your trading arsenal.

I appreciate your explanation. You are experienced and knowledgeable about EAs. How do you know these stuff about them? You use them or you right them?