Almost all operations around the globe have been automated to this far, and forex trading is no exception. Robots have found wide application in trading, rendering human trading almost obsolete.
That, however, does not mean that human trading has been sent parking because most traders would actually rather trade for themselves than involve bots.
The controversy that revolves around robot trading vis-à-vis human trading must have sparked this heated debate – who would actually win more profits trading? Robots or human traders?
Let’s put this discussion to rest.
Robot trading is the incorporation of external softwares into your trading platform to execute trades on your behalf.
Here, your only task is to plug in the software or bot onto your MetaTrader 4 or 5 or even the web platform and wait for profits to roll in.
The activated bot will carry out analysis, spot signals, place trades, and exit them accordingly. Robot trading is also called auto trading – automation of trading.
Strengths of robot trading include:
- Speed – these programs execute trades immediately they spot an entry signal, without any unnecessary delays. This makes them faster than humans because while a human trader is observing only one asset, they are surveying for signals and placing trades across almost all asset classes.
- Emotionlessness– a machine with emotions? You have never seen that, right? Exactly and so trading robots got no emotions and will not succumb to the excitement, anger, fear, revenge, and the other emotions that overcome human traders. What that means is, bots will always do what they were wired to do and never deviate due to emotional turbulences.
- Discipline – if your bot is designed to spot a specific entry signal, that is what it will definitely do, executing trades that meet that certain criterion only. This means robots are able to stick to a given strategy without deviating and that makes them more disciplined than human traders who may deviate from their system from time to time.
- Tirelessness– this is a software for heaven’s sake! You do not expect it to get exhausted at any point unless it runs faulty or something. Where a human trader can only pay attention a few hours a day to trade, a robot will work 24 hours without stopping to take a break or rest. You can imagine the scale of gains you ca have on bot trading. Of course, if it is legit.
- Robots take the place of human traders – you do not need to stay glued to your screen all day if you have a bot.
Human trading, on the other hand, is trading carried out by a human trader, which is you. You have no software incorporated onto your trading platform but only you and your brain. You will carry out analysis, spot signals, place trades, and exit them accordingly, yourself, without any machine assistance.
Now, the strengths of a human trader happen to be the exact weaknesses of robot trading. Let us get to find them out:
- Human traders can monitor various data– from news to technical analysis, these are things human traders can monitor extensively. A robot does not know anything like news released in the last 1 hour yet a human can take note of that and make changes to their trades accordingly, whether exiting current trades or placing new trades in the direction of the news event. The market is dynamic also, and where the bot cannot spot the fluctuations, human traders can conveniently do so.
- Human trading is flexible – If say your trading system fails or breaks, you can fix it to your liking. That, however, is not so for a bot, because it remains as rigid as it was designed and if it fails, you can only expect losses because it cannot instruct itself to upgrade and fix the loopholes. You can learn new things as a human trader while a bot cannot.
- Humans know when to call it quits– a human trader knows when the market is behaving in a weird manner and can take a break to reason and strategize on a comeback. Additionally, human traders know when they have had enough profits or losses and the time to quit trading so that they don’t jeopardize their capital in overtrading.
Who’d Win More Profits Trading? Robots or Humans?
Every other strength of bot trading points towards more gains while not most of the human trading strengths touch on anything like profits.
Actually, most of them tell us how human traders minimize their chances to profit. That should then speak volumes on who actually stands a chance to win more.
Come to think of it:
- Softwares operate 24 hours a day and that’s an upper hand compared to humans who can only trade a few hours a day.
- A program can place hundreds to thousands of trades at a go as compared to humans who can only manage 1 to a few trades at a go.
- A machine that is emotionless and remains disciplined to the proven strategy. Human traders on the other hand can succumb to emotions.
Who then, according to these findings gets to make the most out of the markets?
You can clearly see that the robot has a speed, tirelessness, and emotionless advantage over the human trader.
If you ask me, that’ a hell lot of the right cards under the sleeves. Robots win hand down.
In as much as robots generate the most profits, beware of scammers and fake robot sellers.
Have the bot thoroughly tested before using it live. Genuine robots perform well and can give you better results.