Is automated trading inherently more profitable than manual trading?

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Inherently No, however a lot of profitable affirmative. If investment could be a method, then automation could be a logical conclusion. At the top of the day, auto-trade is sort of a driver less automotive. It will go quick or slow. It all depends on the lustiness of your style.

People most likely get machine-driven commerce wrong. this is often not one thing you'll do over the week finish and let run blithely ever once. If you think that manual commerce could be a extremely competitive, intense sport like Formula one, then imagine sitting in a very F1 automotive while not a hand wheel, accelerator or brake pedals.


Why do people fail ?

The thanks to style a profitable mercantilism system is counter-intuitive. It should be designed to face up to erosion. individuals consider the most effective potential outcome after they style a technique. Wrong. you cannot style and take a look at drive snow tires in Hawaii for a reason.

You need to style machine-driven methods with failure in mind, always. watch out of the dangerous eventualities and therefore the smart ones can watch out of themselves. that's not attractive, however you'd not take a Bugatti Veyron for a spin if You knew that brakes square measure spongy?

When individuals rely on failures, they rely on stop losses or blow-ups. this can be not the most issue, really. the matter is remodeling close to misses into close to losses.

You see, the market is like Donald Vs Trump: it flip-flops all the time and doesn't care regarding your feelings.


The whole game is about:

  • moving the height of profitable trades from tiny losses (1st picture) into tiny profits (2nd picture) then You deliver the goods a combination system. that may solely be achieved by having a solid exit policy
  • elongating the proper tail: ride your winners and cut your losers short. Profits look massive as long as losses look tiny
  • no left tail: do not let pimples develop into abscesses






Simple isn't simple


The privilege of simplicity is that it imposes itself, even to those that don't perceive its sophistication. It takes huge time, dedication, humility, attention to details to style a profitable strong mercantilism system. the hat is that the half the majority don't perceive

For a moment, we tend to were attempting to trade on a five mn bar, leveraged 100:1 twenty four pairs. For those that don't understand Forex, that's as extreme sport as mercantilism may be in an exceedingly non-market creating (i-e HFT) surroundings. we tend to learned plenty, however we've failing up to now.

On the opposite hand, we tend to ar absolutely proud of applying those lessons to slower time frames like fifteen, thirty mn and sixty mn.


But once it works...

It works and admittedly speaking, i might ne'er be able to bring home the bacon identical results manually. I don't need to sit down before of a monitor and ruminate.

Computer trades sort of a mental case. it's no feeling, no hangover and may do more markets. Our formula makes higher choices quantified as higher gain expectancy/trading edge than i might. there's absolute confidence regarding it. It takes trades that bring forth adult pampers and makes cash.


Chain employee versus traffic controller mindsets

The mentality of associate car merchant is totally different than a manual merchant. you have got to trust the system. Once You car trade, you have got to let the machine take the trade albeit your guts scream no and you are feeling the requirement for adult size pampers.

Being associate car merchant is like being pregnant: either you're, either you're not. you cannot be 0.5 pregnant on weekday as a result of it's ladies' night.

The good news is you'll monitor multiple markets on your own time.

Auto trade has taken its toll on my life, however currently I will quit and drink some wine or kitesurf or each, whereas the machine keeps mercantilism away which is associate incommensurable feeling of freedom. superb diversity within the Sicilian varietals by the method

 
I believe that  Human eye detects reversal very early if you trade based on Technical indicators. I myself do automated strategies but, still i look at charts manually to know the trend. If you can control your emotions and believe your instincts, nothing is above that.
 

manual trading has the advantage of being more obvious : if you want to make the same thing a brain does but automated, it's really hard, because of all the nuances a brain can deal with that is hard to mathematically replicate


Jeff

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