June 25, 2024



Consistency and Profitability are Improved by Automated Trading Systems.

Making decisions with real money in the volatility of the markets is harder than most novices imagine. Letting losers نحوه ورود به فارکس,How Money Management, Consistency and Profitability are Improved by Automated Trading Systems. Articles closing winners too early, averaging down, and trading too large, are all common mistakes that occur. All of these mistakes can cost vast amounts of money, with many traders having blown out their accounts completely. Automating your trading plan will ensure that these problems are avoided and will also free you up to focus on building the best possible forex trading system to meet your objectives.

Once you have built and tested a robust trading plan, you can implement your money management strategy automatically, ensuring that you never deviate from the risk management rules set up. You can rely on your program to manage your money error-free. Just building your money management rules such as percentage risk per trade, maximum draw down per month as well as stop losses, does not guarantee that you are actually going to obey them. Your program, however, won’t miss a beat, ensuring that the initial stop loss, trailing stop loss, and target prices that you have set will never be tampered with. You will also never find the computer doubling up on a losing trade to try to make it back the same way. By eliminating manual intervention you will save yourself much trading capital and preserve your capital through implementing your money management rules correctly.

One of the often overlooked advantages of auto trading forex programs is that it forces you to build a water tight money management system prior to trading. Many novice traders jump into trading without a plan, only to wipe their capital out before they even realise why. You cannot build an automated trading strategy without implementing a money management system. This may save you your account.

As a manual trader it is almost impossible to take every trade that your system offers you because forex markets trade 24 hours per day. To achieve consistency you are required to take every trade that your system offers you. As humans we may have good and bad trading days. We may have something bothering us, or a distraction, or perhaps a bad night’s sleep. These factors can lead to inconsistent results. Big mistakes made due to emotional trading can set a system back many months or cause you to have a very ugly looking equity curve. I remember clearly a study that I read showing that an investment returning a steady 10% per year will outperform an investment that jumps from +50% one year to -40% the next, and so on. This is why I have never underestimated the importance of consistency in my forex day trading. It is far easier to remain consistent with an automated system.

Your consistency will improve over time because, by auto trading, you’ll free yourself up to do extra research, system testing and improving your trading process. By constantly improving weak areas of your system you’ll be building a better and more profitable strategy.


Once you eradicate your trading errors, emotional decision making and poor money management, your trading will become more profitable. You will also add to your profitability by being able to trade multiple trading sessions. This will provide an additional type of leverage on your money because by trading more hours in the day, your money will be working harder for you. If you were spending 6 hours a day on manual day trading, your money can be traded 4 times longer per day by using an automated system. It’s like getting an additional 4:1 leverage on your money. In order for North American based traders to trade the European session it requires them to be at their desks in the very early hours of the morning. It is just as disruptive for Europeans wanting to trade the Asian sessions. With an automated system in place, your trades are executed consistently while you sleep.