Monthly Archives: July 2018

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Comparison of the robot and the trader

Category : Robots

The financial market is developing rapidly and every year there are more and more new products that facilitate the fate of the trader in the trading process. This can be new trading platforms, analysis techniques, as well as automatic algorithms. It is for the implementation of high-frequency fix api trading that all large hedge funds are targeted. There are new departments and quantum developments in this direction. According to some forecasts, the trader’s profession may disappear altogether from the open space and all the operations in the financial market will be carried out directly by trading robots. Is this true or not, everyone can judge on his own. I, in the context of this issue, will consider the key features of both the trader and the trading algorithm in order to make it easier to determine the winner.

Strengths of the trader:

  1. Ability to adapt to the current market situation. We can quickly rebuild your forecast and your open positions based on the current market information and dynamics. Thus, at the moment of the greatest shocks in the market (active growth or fall), we can enter the market earning on these speculative races without a special trading strategy. We can act not according to a clearly defined scenario, but to adapt it to the market.
  2. Ability to conduct analytics on the basis of external factors and compare it with the “rumors”. Each trader can combine different market information into a single stream and draw conclusions based on it. Moreover, sometimes from the unstructured information it is possible to receive very valuable hints on the market. So we can predict the future dynamics of the currency pair in the fix api forex market only on the basis of one fundamental indicator, predicting the future dynamics of interest rates from the Central Banks.

Strengths of the robot:

  1. Clear adherence to the trading algorithm. The trading robot ( ) is able to work exclusively based on the parameters that are set in it. If there is a sharp jump or a turn in the market, the robot will take it into account only in the form of figures that constantly change in the financial market. Thus, if the robot is tested and is able to show a positive mathematical expectation, then its indicators will be stable under any market dynamics, which allows you to form a passive source of income with fix api trading.
  2. Adherence to risk and money management policies. Continuing the first point, the robot will always act within the program code. Therefore, the given risk parameter will not be violated ( ).
  3. Absence of psychological factors. The trading robot perceives the market only in the form of digital data. The losses for him are no more and no less than a certain set of figures. Therefore, it will not win back for result (of course, if the Martingale principle is not included in its work logic). Also, the robot will not deviate from the given scenario in case of a series of profitable positions.

Weaknesses of the trader:

  1. Exposed to emotions. Often, we perceive every dynamic of the trading account quite emotionally. Whether it is a growth or a decrease in balance, we cannot escape from our emotions. But this is the worst thing that can happen with a fix api trader. Because of the emotions, there is a deviation from the strategy, trading with high risks, constant selection of new and new algorithms for work. But this does not always have to be done, and this is our strenght.
  2. The trader is able to act not on a strategic line. Every trader can deviate from his system from time to time, which provokes the emergence of new and new risks. Work outside the system causes for us a deviation from the forecasted values ​​of trade and reduces our trading indicators.

Weaknesses of the robot:

  1. Inability to adapt to the current market situations. The strong side of the robot is also its weak side. The robot will not deviate from its programmed algorithm, and therefore can skip profitable entry points, which can give a short-term effect in the form of additional profitability.

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