Forex Trading Systems And The Human Touch
Learning to trade forex has become an engrossing pursuit for thousands of internet users all over the world.
So much so, that the phrase “holy grail” has come to be associated with forex trading systems which reach some mythical status of perfection, presumably where one always wins and never loses, in a market known for its fickleness and its ability to turn the tables on the profitability of one’s trading account.
For that reason, many dismiss forex robots, with the thought that because the holy grail is an unattainable status, trying to achieve it with an automated system is tantamount to setting oneself up for failure, especially as the trader has little or no input into the trading process with such a system.
It is true of course, that a poorly designed, unsophisticated robot will inevitably fail, and lose money sooner rather than later, so to entrust your live account to some random expert advisor that has a convincing sales page, but which does not have independently corroborated live test results, is a recipe for disaster.
On the other hand, it is a misconception that using an automated program, even a tried and tested EA, is a hands-off exercise. Nothing could be further from the truth. Even just the simple decision of how much to fund your account with, and the setting of risk level or lot size, is a human decision which, if poorly exercised, can lead to loss. It is a mistake I have to confess to, that of letting loose on my $1000 live account, an EA designed for a much larger account, against the instructions given by the vendor, with the optimistic expectation that because this EA had made money in demo trading for a few months, all would be well and it would increase my capital quickly enough to take it out of the danger zone. This is a mistake I could have avoided by exercising my human judgement, and using a different type of EA such as Primeval EA exclusively on the account.
