In my last post I have described the best advantages of the automated Forex trading. But, of course, I understand that the trading using the expert advisors is not always something good. Everything has its own pros and cons; so the automated trading has its own disadvantages and I’ll try to describe them in this article:
- No intuition to help your trading. Computers and programs simply dont have anything similar to that mystical human feeling. While some traders dont think that the intuition can be helpful in trading, others rely on it — such traders probably wont be pleased with the automated trading.
- Smooth trade execution and uninterrupted
run-timeof the expert advisors is critical with many trading systems. Unfortunately, its something very hard to achieve running EA from your home or work PC. That means that youd require some dedicated server to run your automated trading.
- Some types of strategies are simply impossible to implement into the real expert advisors. The chart pattern or wave analysis and fundamental analysis are extremely hard to code in the trading program. At the current level of the AI development these tasks are better performed by he live trader manually.
- The expert advisors should be made quality or otherwise their trading results will disappoint you. Unfortunately, not all expert advisors handle errors and other unexpected events correctly — sometimes this can lead to the huge losses. Moving your working EA from one broker to another can also be a problem, since broker servers differ and what works perfectly on one broker can stop working on another.
As you see, nothing is perfect in this world and, while being an extremely interesting and popular tool, automated Forex trading has its own problems. The wise decision here, in my opinion, would be using both types of trading to your advantage. The systems that can be easily implemented as the expert advisor and are too hard to be traded manually are better to be automated, while the simple systems that involve chart pattern and fundamental analysis are better left for the manual trading.