Online Trading Reviews: 4 Tips about how to Combine Automated and Discretionary Trading

There's always been a discussion about what type of trading is better, automated or discretionary. Many people within the Forex trading online community read online trading reviews , trading articles, watch trading videos, and are always trying to find as much information and tools as they possibly can.

The problem is that many of these traders come to be overwhelmed with the large amount of information available on the internet. In addition to that, frequently they are tricked by so called “Forex gurus” who often don’t even trade the markets and are actually just internet marketers.

My team of traders and I have found that to become successful , a FX trader has to find a equilibrium between automated trading and discretionary trading. You are about to learn 4 tips on how you can effectively combine automated FX trading with manual or discretionary trading.


Machines are just machines and human involvement is essential:

The use of technology has totally changed our life styles and has converted our world into a world of convenience. Therefore most people are always looking for instant gratification, nevertheless; Fx trading is the wrong place to look for it.


Many people believe that buying a trading robot is going to change 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 improve your automated software’s general performance 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 complicated mathematical algorisms that can be affected by any changes you make to the trading system’s parameters. One example is, 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 utilizes.


How to use automation to put your emotions aside:

Automation can be quite helpful because it allows you to automate the execution of your trades and also 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 aside.

Allowing your emotions get on the way is a mistake that most Forex traders commit. When you take emotional trading decisions you are more 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 ideal balance between automation and discretionary trading is simpler said than done. On the other hand, one can accomplish this by just adjusting the trading system to his/her own individual trading objectives 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.

All the best,
Jay Molina
Pro Forex Trader and Instructor

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