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Forex Trading: Is Mechanical Or Autopilot Trading Best?

By Edward Lomax

Republish: EasyPublish™
Published: 19Mar2009
Word count: 495
Viewed: 243 time(s)

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There are two main ways to take advantage of the tremendous opportunity the Forex Market provides. One is mechanical trading where the trader looks at the charts and places trades determined by a set of predefined rules. The other is autopilot trading, where a computer script called and Expert Advisor makes the trades for you determined by the programmed indicators. While both can be very profitable, which one is best?

I'm afraid this is a debate that will go on for quite some time. Some traders believe only mechanical Forex trading systems bring about consistent results. Other traders believe all human emotion must be removed from trading to be successful. My recent experience testing a Forex system that had both options (mechanical and autopilot), has lead to some conclusions.

Forex Trading Unique Opportunity

Recently I was testing a product that had both options, mechanical and autopilot. This is a unique opportunity to test a system with my own input directly against the automated trading option. Usually, a Forex trading system is either one or the other, so a specific comparison is not possible.

The Autopilot Option Using The Expert Advisor

In this particular case, I could not get the autopilot version to work at all. I tested it doing different backtests with different settings... and made a moderate profit. I set it up on a demo account and got similar results. All in all, I could not get the Expert Advisor to work and would never use it on a live account.

Just so you know, there are some Expert Advisors that work quite well, and it is a great option to put your trading on autopilot, especially if you are busy and don't have a lot of time to trade yourself. This was not the case with this particular advisor, but...

I Made Great Trades With The Mechanical Trading Option

While the autopilot version did not work that well, I did make great trades while trading manually. In the manual version you look at a chart with custom indicators and look for a trading set up. When all indicators point in the same direction (either buy or sell), you place and manage the trade.

So, how can I explain the different results between the autopilot and mechanical versions of the same trading system? Well, it might just be that for this particular system, a robot just can't beat a human. I mean every trader will have different results using the same system. Each trader brings something unique to the trading that can determine their success or failure.

A valuable lesson can be learned here. Regardless of the way you decide to trade Forex, results will vary from trader to trader, or the type of system you use. When you use an Expert Advisor, you take away this variable, which is great if the robot works great. But when trading manually, human intuition will play a role... which might not be such a bad thing.

To find out how I made 822 pips in 3 days mechanical trading where the autopilot option failed, go to Forex Terminator Review. If you insist on using an Expert Advisor, use on that gets consistent results: FAP Turbo Review.

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