BENEFITS OF TRADING WITH ROBOTS (SELF-CREATED)
As a flipside to my previous article (“The Dangers of Trading With Robots”), I began listing some benefits of using robots. When done well, they can really up your trading performance.
HERE ARE EIGHT BENEFITS OF COMBINING HUMANS AND MACHINES TO TRADE TOGETHER.
#1 - YOU’RE THE BEST PERSON TO LOOK AFTER YOUR MONEY
No one cares about your money more than you do. Despite what many financial advisors will have you believe (so they can charge you a hefty fee, naturally) you’re the best person to look after your money. If you invest a bit of time and learn how to algo-trade, you’re perfectly capable of managing your money better than many professionals.
#2 - YOU KNOW WHY THE TRADE IS PLACED
Semi-automated trading is the best way for beginner traders to learn about markets. Learn how to trade, learn different trading systems, learn how to manage risk and how different stats work in trading. You can have algorithms doing all the hard work for you – finding patterns, checking charts, analysing trades, testing strategies, controlling risk, managing orders. All the time, you’re in control. You can have algorithms that alert you when there is a potential trading opportunity. With a simple tap “YES”, the algorithms will take care of the rest – placing the orders, calculating risks, managing the orders for you.
#3 - YOU LEARN A LOT
You learn a lot when you’re involved in the decision-making process. You learn to identify different trading patterns and trading systems. You can learn if some systems suit you more than others. To million-dollar traders, it is essential to follow a trading strategy that fits their personalities.
#4 - YOU GAIN CHART TIME
When trading semi-automatically your robot can send you a chart every time there is a potential trading opportunity. This will create a huge memory database in your brain. With time you will get so used to that the chart patterns - you will respond to them intuitively. Human+machine made second nature – like a Formula-1 driver expertly driving his car around the track.
#5 - YOU CAN IMPROVE
Since you’re making decisions and are involved in the trading process with your robot, you will find ways to improve along the way. Analysing your stats and trading performance becomes much easier as you know exactly why each trade was placed.
#6 - YOU GET MARKET “FEEL”
Markets are like living, breathing organisms where millions of people make decisions every day about what is overpriced and what is undervalued. If you’re not part of this organism and let robots trade automatically for you, you will never develop a market “feel.” A lot of markets are correlated such that when things start to move you can take advantage of this by being more aggressive. Similarly, if markets are choppy and sideways you can be more cautious. If you trade fully automatic systems you will never gain this market sense.
#7 - YOU DEVELOP DISCIPLINE
Your robots will send you signals only when there is something to trade. If there is nothing to trade, they tell you to do nothing. This will help you to develop discipline – the number one skill required for a million-dollar trader.
#8 YOU DEVELOP SKILLS NEEDED FOR A MILLION-DOLLAR TRADER
With the support of robots, rather than relying on them entirely, you can develop all the skills you need to become a million-dollar trader:
Discipline
Risk management
Patience
Knowledge (about self and relevant market statistics)
Automated process
Backtesting
Self-development
Strategy matching your personallity (self-awareness)
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