By Ivo Luhse, Robot Trader & Founder of Evestin Forex
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While manual trading still has its place, the future belongs to automated trading. However, a good robot manager aka 'Robot Trader' is the key to having to correct balance between a trader and a machine. This is not a about Human VS Robot but rather Human + Robot. Both have a very important role to play. A good robot trader is needed to take the advantage of the automated trading. Moving onto robot trading is natural progression each trader will need to recognize if he is to succeed in this new world of trading.
Listed below and the 6 main reasons why you need to seriously consider robot trading if you want to be a successful trader.
Reason #1 Gives confidence in trading strategy
Since you can run very detailed backtests for your trading strategies and trade ideas any guess work has been taken out of trading. You can fully rely your trading decisions on probabilities and statistics. No more trading on “Guru” recommendations.
Back in 2012 when I started to learn the candlestick trading strategy (the strategy Satoshi robot trades) I felt frustrated with my lack of confidence sticking to the strategy when trading it manually. And while my mentor who thought me this strategy provided his full strategy and gave me his recommendations it was only when I build my first robot to do automated backtest I could use this strategy effectively. I had finally a statistical proof that this strategy works. On black and white, I had the proof that this strategy has an edge.This was my eureka moment and I have never looked back. Now I have full confidence in all my trading systems I trade because I have statistical proof they work.
Reason #2 Removes emotions
Since you’re not in the heat of the moment trading scenario anymore (you are not taking the trades anymore), using robots drastically reduces stress in trading. If you find hard to follow your own rules - trading with robots will be a game changer for you.
Reason #3 Promotes discipline
Ties in the with the rule above about emotions. A trading robot will do exactly as it was coded to do and will not deviate from your trading rules or risk parameters. This will make you a better trader and make you stick to your own rules. After all, if robot can do it, I can do it too.
Reason #4 Robot runs 24/7
A trading robot will trade while you sleep. The robot will never get tired or need a holiday. When trading manually a break off trading is a must to recharge and switch off from the market. The problem is holidays cost a lot of money. I remember feeling stressed and trading from my laptop in case I miss something. Now when I go on trips I enjoy them 100 times more because I know my robots work for me 24/7 and are paying for my pomegranate martinis 😀 It is one of the best feelings ever to go on a holiday and still make money.
Reason #5 Double, triple of even quadruple you trading income.
Since your robot runs 24/7 and you no longer need to sit at the computer to take the trades, you will have free time to learn and develop new trading strategies. With manual trading, you can only trade one single trading strategy at best. Since building my 1st robot (Satoshi) I now have gone and build another 3 robots and looking to build a new robot every year. This has drastically increased my trading income something I would never be able to do trading just one trading system manually.
REASON #6 Consistency
Let's face it one single trading strategy can't perform consistently well in all market conditions. Some strategies perform well in trendy markets, some in range markets, some will only return a profit in Bull markets while losing money in Bear markets. But since you can run multiple trading robots at the same time on your account you can achieve excellent consistency in any market phase. Most traders still believe that trading multiple trading strategies or multiple trading robots increases the risk were, in fact, the very opposite happens. This is because if one trading robot is struggling other robots will be making a profit and covering for it and then again vice verse. It's a team work! The best robots work in a team. But the key is to have your robot trading strategies uncorrelated and unique.
This is what I have done - I built a portfolio of 4 uncorrelated and unique trading strategies and I run them all the time. This way I can achieve excellent consistency no matter what the market does, it can be trendy, stuck in a range, in an uptrend or downtrend. Trading manually just one single trading strategy will never give you consistency you seek.
Start trading with robots today, do not delay it. I promise you, You will never look at your trading the same way again. And you never know one day you might build your own army of robots.
To your trading success,