Trader vs robot: who wins the fight

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Trader vs robot: who wins the fight

Category : Robots

Every year, trading in the financial market attracts more and more new players who challenge it. Based on the already established laws and certain regularities, each of us has taken his first steps to work in the market. Agree that in order to profitably trade in the fix apiforex market, you need to spend more than one year. The learning process is not so much in understanding the methods of forecasting, but in understanding the very structure of the market. And only those who understand the depth of the market, manage to create their understanding in the form of a ready trading strategy.

Fix api trading automation has allowed to create a set of ready trading instruments for trading in the form of algorithmic trading strategies. And if earlier it was necessary to study the market and ways to trade, today it can be reduced to only one value. The number of trading robots is growing every year, but there are people who do not trust their capital or the trading process to an automatic system.

For those, who are in doubt about the effectiveness of the robots, or those, who think about automating their trading strategy, I will conduct a small analysis of traders and robots. I will highlight 6 key parameters that are comparable between a robot and a trader.

  1. Psychological factors. Let’s start with the simplest one. The robot is a machine. It is an algorithm of sequential actions, which operate according to clearly defined conditions. The robot is deprived of the possibility of emotional opening of transactions and “acting out”, which often happens with the traders. It happened to me too when I transferred stop loss to even greater loss, thereby bypassing my own rules of risk management and getting even more loss. Therefore, the robot wins in this parameter.
  2. Timeframe. If your computer is turned on or fix api MT4 terminal is open on the VPS server, the trading robot will be able to conduct trading 24 hours 5 days a week. This allows you not to miss the advantageous entry points and thereby increase the profitability of the trading strategy. The trader, in turn, cannot boast with such indicators.
  3. Ability to monitor the market map. Personally, I gave preference to several financial assets for monitoring, which I was constantly monitoring, and also studied fundamental factors. Thus, at my disposal there were no more than 10 tools. As for trading robots, the algorithm is able to analyze all the current tools that are available in the market review. Another point in the piggy bank of the robot.
  4. Trading at the time of fundamental data. When there are high events or a public speech, let’s say the FRSheads, this is always indicated by increased volatility in the fix apiforex market. The trader is able to optimize his trading process at the moment and moreover, to adjust the risks towards these events. As for the robot, it trades according to a given algorithm, and they do not take into account such moments. Trader receives a point because of his the ability to regulate his activities.
  5. The ability to make creative decisions. This parameter comes from the past. A trader can go beyond the strategy if he has information in his arsenal. Again, the robot works only according to a given strategy.
  6. The speed of decision-making. All people say that the robot is able to trade more quickly than a trader. However, this depends on the strategy ( If it is a question of fix api arbitrage trading, which consists of analyzing different quotes and on different exchange platforms, then certainly the robot is able to realize this task faster like this algorithm –, if the transaction should open in the breakdown of the channel, then the robot and the trader will open it equally.

Thus, taking into account the parameters that I mentioned above, it is possible to single out an algorithmic approach that has more advantages than the “manual” trading. If you have a working trading strategy, then why not turn it into a trading algorithm?

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