Online Trading Reviews: 4 Techniques to Combine Automated and Discretionary Trading

There has always been a discussion about what form of trading is better, automated or discretionary. Folks within the Currency exchange community read online trading reviews , trading articles, watch trading videos, and are always looking to get as much information and resources as they possibly can.

The problem is that many of these traders come to be overwhelmed with the extensive amount of information available online. Moreover, many times they are misled by so called “Forex gurus” who many times don’t even trade the markets and are actually just online marketers.

My team of traders and I have discovered that to be successful , a Forex trader has to find a balance between automated trading and discretionary trading. You are about to lea
4 tips on how you can effectively combine automated FX trading with manual or discretionary trading.
Machines are merely machines and human intervention is essential:
The utilization of technology has totally changed our life styles and has transformed our world into a world of convenience. Due to this fact most people are always looking for instant gratification, however; Forex trading is the wrong place to look for it.
Many people think that buying a trading robot is going to transform their life and make them rich over night. A trading robot might produce you decent profits but to really maximize its performance human participation is needed. The best method you can enhance your automated software’s results is through the implementation of discretionary trading.

Some of the most successful discretionary techniques that can be used to improve your robot’s performance are: discretionary take profits, scaling out your positions, reducing a positions risk, among others.
Machines make mistakes too! :

Automated trading systems are based on complex mathematical algorisms that can be affected by any alterations you make to the trading system’s parameters. As an example, if you double the risk that the trading system takes per trade, this could jeopardize the results and even the money management strategy that the system uses.
How to use automation to put your emotions aside:

Automation can be quite helpful since it enables you to automate the execution of your trades and even the risk control tasks involved in trading.

When you let your automated trading strategy to measure the best entries, exits, stop loss levels, and take profit levels, you will be able to put your emotions away.

Letting your emotions get on the way is a mistake that most FX traders make. When you take emotional trading decisions you are very likely to make irrational choices and take higher (and unnecessary) risks.

How you can put together a balanced trading plan and approach:

Putting together an effective trading plan that has a perfect balance between automation and discretionary trading is easier said than done. Nevertheless, one can achieve this by just adapting the trading system to his/her own personal trading targets and personality,

Make sure to always perform proper backtesting, read online trading reviews, and be constantly developing your trading skills. As I always tell my traders, when you put it all together making money from the Forex becomes second nature.

Best wishes,

Jay Molinar
Pro Currency trader and Mentor