Automated Forex trading is becoming increasingly popular every year. Many novice traders are unwilling to go into the analytical features of the exchange process and turning to automated trading advisors.
By itself, the automated trading advisor is an executable program, which laid the basis for an algorithm of actions, often quite primitive, aimed more towards fortune. It should be understood clear that trading advisers can not be a complete guarantee of success.
If trade with the help of expert advisors was successful at 100%, then no one thought to make trades manually.
Market changes are dynamic, and even an experienced trader may not always efficiently track its changes. The following are the main disadvantages of automated trading:
1) Advisers always operate within a predetermined program, since they lack intelligence. Some trading factors impossible to predict in the development of a strategy;
2) All trading strategies are developed by people, and people are often wrong. In automated trading conditions, these errors can lead to large losses;
3) If the trading situation will change dramatically after the release of economic news, the adviser does not respond to it and will continue to trade, leading to the inevitable losses;
4) By using the adviser which is in the public domain on the Internet, it should be understood that it is likely to have lost its relevance because of the changing market behavior;
5) Novice traders are losing precious time searching for the "right" advisor. Better to spend these efforts to study the basics of technical and fundamental analysis;
6) Good free or cheap Forex advisors does not exist - they all cost a lot of money;
7) If a trader is using an adviser for a long time, it will inevitably lead to the loss of his own trading skills.
Beginners should be aware that trading using robots is absolutely contraindicated to them, although most advertising advisors focused on them. Advertising creates an illusion to a beginner that he can earn money without doing anything, but it is, after all, beats his pocket, which in most cases leads to the fact that he ceases to trade on the Forex market.
The best option for a trader is to develop his own individual trading strategy. After extensive testing and adjustments to the algorithm, its own trading system can be very effectively used in trading.
