In the past, people used to think about the manual trading strategy. They never thought they could rely on the automated trading software of EAs to make a profit. Look at the smart traders in today’s world. You will be surprised to know, many retail traders are making thousands of dollars profit without lifting any finger. All the complex calculations are done by the automated trading software. Things like technical and fundamental analysis are easily taken care of by the advanced trading robots.
Technical and fundamental analysis is not enough to secure the profit. You need to assess the fundamental data to make the best decision in this market. Technical, fundamental and sentiment analysis is the foundation of finding good quality signals. This is where things become a little bit tricky. The robots can’t assess the sentiment of the market.
So, if you blindly rely on the robots, you have to lose some trades since the EA will not be able to assess the sentiment of the market. So, if you give the responsibility of doing the sentiment analysis, you can easily make a decent profit. Instead of relying on the fully automated trading system, you can assess the market sentiment and compare the EA results before the execution of the trade.
Let’s find out some of the key reasons for which semi-automatic EAs are so popular among professional traders.
Gives you the ultimate control
Semi-automatic EAs never execute the trade in the Forex market without taking permission from the traders. Once the EAs find a suitable trade setup, it alerts the retail traders. The retail traders get the unique chance to analyze the market sentiment and asses the EAs condition.
To be precise, it’s more like double-checking the things before getting into the market. Though this process requires in-depth skills in trading still it is one of the easiest ways to compensate for the flows of EAs. The EAs will reduce the hassle of doing the technical and fundamental analysis. And you are the one who will evaluate the overall market condition before taking any trade.
Allows you to set risk exposure
If you use a semi-automatic EA, you can control the risk exposure based on the market condition. At times it becomes hard for the automated trading system to analyze the currency volatility. They relate the historic price movement and use the same risk exposure while trading the market. For instance, the EAs can’t evaluate the potential outcome from an FOMC meeting minutes.
Let’s think about Brexit events. Do you think the EAs could have handled such catastrophic disasters? The obvious answer is NO. On the contrary, if you rely on the semi-automated trading system, you could have made a profit even during the Brexit news. By getting the unique chance to act based on the condition of the market, you can significantly reduce the risk exposure at trading.
Allows you improvise
EAs are nothing but a bunch of codes. But the price movement in the Forex market is the reflection of the global economic transitions which is also related to human emotions. Some of you might say, emotions don’t play any role in the Forex market price movement. But think about the ECB press confidence. A large number of traders act to the ECB press conference based emotions and analytical data. On the contrary, the EA will only relate the price movement.
It can’t deal with the gist of the press conference. For this reason, EAs tends to fail in dealing with such a sophisticated announcement. But if you use the semi-automated trading strategy, you will get the technical data with a high level of accuracy even during the ECB meeting or such events. You just need to analyze the fundamental data before the placement of any trade. To be honest, it gives you the unique ability to improvise based on the market condition.
Allows you to learn
There are few EAs with an advanced algorithm that can take care of market sentiment to a great extent. It stops placing trades for a definite period after losing 2-3 trades. Such EAs are capable of making a profit at any market condition. But still, you need to learn the art of trading. Without having any skills in the Forex market, it will be hard to decide to trade. You will never know whether the EA is trading the market based on proper logic.
Those who have the skills to trade the market manually can find the faults in the automated trading bots. So, try to learn the manual art of trading and use the semi-automatic EAs at the initial stage to improve your skills. And never lose hope at trading based on your trading results. Try to be a confident trader and take advantage of modern technology.