There are many people in Forex who think they can use their automated trading software for placing their trade in Forex. It is not yet being understood to what extent this trading software can trade the market and automate the trading of the people. Many software makers say that this software has artificial intelligence that can analyze the market and evolve with the market and adapt itself. We know that s not true as true artificial intelligence has not been created. Nowadays, more and more people are becoming interested in automated trading. This is one way how you place your trade in Forex by doing the minimum. You set your strategy on the software, set your position size, your leverage and when the market matches with your strategy, the trading software places the trade for you. It can also give you the future prediction of the market and also suggest you how you can trade your market. It’s basically an advanced set of programs that can place the trade for you in markets when you enter your strategy systematically. This article is not going to tell you about the qualities of automated software but let you know if they are useful in Forex. You will be trading with your money and you should know if this software can use your money for more profit.
If you look at the professional traders at Saxo, you will notice one thing in common. Every single one of them is trading the market with the manual trading system. They are not trading with EAs and bots. If you do some research on the internet you will find many sites saying that they have the best EAs and bots. If this software was so much profit they wouldn’t have to sell this thing. They would have been a millionaire just by using these tools. You need to understand that manual trading system is the only way to make a consistent profit.
Dynamic nature of human mind
We all know that Forex market is dynamic in nature. In the CFD trading industry, you can use the software to place a trade on behalf of you, but chances are very high, you will lose money. You need the human mind to adapt to the dynamic changes in this market. Without assessing the sentiment of the market it’s almost impossible to make a consistent profit. If you are not sure about the trading software, plug it into the demo account and you will see the horrible trading performance.
Their logic and analysis are limited
You should know that these are only some strings of command that can analyze the market to know the basic things like the patterns and trends. They have many limitations and they cannot get beyond their program. Although this software is called having the ability to analyze the future trends, they always go back to their pre-set trends. You should not trust this software when you are trading in Forex. They can only help you to take the basic decisions. Whatever you do in Forex, you have to know they have only limited logic and their analyses are something you should depend on Forex.
There are chances that will misplace your trade
Even if the software places the trade for you, there are chances that it will misplace your trades. It goes by limited logic and will place trades even if the market has no favorable trends for trading. The human mind is the greatest thing we have and this mere technology is the match for it. Always try to place your trades by your won. If you do not have the time or you do not know how to analyze the market, you can invest your money in the professionals. They are better than your software and can give you more return on your investment.