Manual vs Auto Trading

Manual vs auto trading

For me, the choice to move to an automated system was relatively easy; you may be considering it now. Let me share my thought process…

The Emotional Element

I know I have trouble sometimes not wanting to take another trade if the last one lost because I don’t want to lose again.  Equally I have trouble taking a trade if the last one won because I don’t want to give back what I’ve just gained.

Whether it’s fear or greed that we face, the algorithm doesn’t care.  If the system sees the perfect setup, it takes it – regardless of the outcome of the last trade.  

I’m Human

I need to take breaks, from time to time I lose focus, get bored or just get tired.  A system will do none of these. Once I turn it on, it takes every trade that it should until I turn it off.  And that’s what any edge is built on – taking every trade that meets the rules – not some of them. This is how big banks and hedge funds work.

Analysis Paralysis

I don’t know about you, but every time I look at a trade setup, I can find 5 reasons to take it and 5 not.  That definitely does not make the decision process very easy. I say: “Yes, that’s the perfect setup, but…”  

With the algo, there are no buts.  You’ve already set the rules, it’s just executing against your plan.

Speed

The computer can just analyze and make decisions faster than I can.  When manually trading, I can typically trade 2 markets simultaneously.  The computer can trade as many as I want it to. And, it can look at more criteria before it makes a decision.  

Let’s say I want to evaluate 3 things before I make a decision – no problem.  But, suppose I want to evaluate 30 things…by the time I get through the list, the trade opportunity is gone. So, the computer can work both wider and deeper – more markets and more factors within each market. No contest.

So, once I went through everything, it was a no brainer for me to choose automation. And when I saw what Inteligex was doing with AI and Machine Learning, the decision was made. But those thoughts are for another time…

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