Robot vs Manual

Sometimes reading topics in this forum, I don’t understand some posts related to trading robots.

Those of you who trade with a system, what do you think is the difference between a trading robot and manual trading?

Why do you think it is not possible to be profitable with a trading robot? And why it is possible with your manual system?

2 Likes

In a few years time, we’ll all become victims of robots…

Contrary to popular belief that bots are just an automated version of manual trading strategy, it’s correct but not entirely right. There are many manual strategies that can not be automated and there are many automated trading systems that can not be done manually (e.g. Arbitrage, etc.). It is also a misconception that running a bot eliminates the psychological aspect of trading. At some points, it affects the traders psychologically when traders monitors the performance of the bot and at some point intervene the execution like closing open trades due to doubts and other emotions.

Opinions of traders about profitability, automated or manual, depend on their length of experience and depend on what they have experienced. IMHO, a bot can be profitable consistently. That is based on my experience.

Some example of manual trading system that cannot be autoamted?

Taking into account real world events. What if a whole country suddenly vanished. The bot would not take that into account.

Perfectly automatable.

If that’s your system can be automated. No worries

For example, how many systems wuold anyone need to properly diversify among strategies? Would it be possible to trade all of them manually?

It is a trader’s choice to either choose automated trading or manual trading. Frankly, I don’t think that any of them is better than the other. When you are trading using a robot, you can make use of even the smallest market changes. But when you trade manually, you get to make your own trading decisions.

Thanks for your answer.

My point here is that every manual system can be an automated system. That I can’t see why, as many demanded, a manual system works and, instead, an automated system doesn’t.

It’s just a matter of being automated. The system is the same.

When you are trading manually, you have to make all the decisions on your own in accordance with what you see in the market. But when you are using a robot to trade, you preset it with your own instructions and it runs automatically when all the conditions are met.

Automated trading systems are much better than manual ones. Personally, the reason behind this is the ease and confidence it provides while trading. A human can lie while a computer cannot. Similarly, you can for once change your decisions while trading manually but once you have set your trades using automated trading modes, there is
no such confusion.

The difference is in speed of reaction and reducing human factor. Some trades especially during volatility can’t be made manually since price changes fast

I personally am profitable at both manual or EA based trading, but the differences are: :new_moon_with_face: :sun_with_face:

A. An EA can send 10 orders at one time to a server: VS a Human who must manually place them by manually taking their time to put in the type of order, take profit and stop loss. [EA WINS]. :heavy_check_mark:

B. An EA does not have to conduct technical analysis because its already hard-coded into the EA . VS a Human who must subject themselves to viewing a chart for hours. [EA WINS]. :heavy_check_mark:

C. An EA frees up your time to enjoy life because it does all the work for you. (Think of it as your assistant). You can go out and just live while it does everything you would do if you were in front of the computer. [EA WINS]. :heavy_check_mark:

D. We’re in the technology and information era, so the demand for algorithmic lifestyles are on the ascension. Most standard processes of society are being reevaluated to include algorithmic life experiences. A robot that trades for you is inline with this algorithmic demand and rise of social consciousness. [EA WINS]. :heavy_check_mark:

E. If you work a 9-5, and you don’t have an EA, you’ll need to find time to include technical analysis throughout your work week, and on Sunday to prepare for Monday’s trading session. VS An EA that conducts the analysis for you throughout the week and on Sunday at 5pm, you’ll be able to work care free and have more time freedom. [EA WINS]. :heavy_check_mark:

I no longer manual trade, and I feel like a heavy burden’s been lifted off of my shoulders. I feel great, and for this reason, I choose a well programmed [EA] over manual trading any-day. :100: :white_check_mark: