Types of Market Pattern
The rule no 1 to develop a Forex winning system is to know the Forex different types of market pattern. It is really crazy to believe all the so called Gurus online trying to sell you one single robotic Forex trading system that claims to win in all market conditions. If you can observe the different types of market or patterns then you will stand the chance to develop a super winning trading system that will always keep you in the money.
The market price is normally either trending up, down or sideways and if you can spot the bigger picture of where the trend is going then you stand the chance to enter a trade at the right level and make a good profit from the market. About 90% of traders fail or finds it difficult to see the big picture to know if the market is trending up, down or sideways. Traders often make mistakes like selling a strong bullish trend on a temporary retracement or buying a strong bearish trend on a temporary pullback or getting stuck in a strong ranging market.
Advantages of robotic trading
A robot if design to trade a specific market pattern then it has a capability to search between different currency pairs nonstop until it find an entry signal then send alert to a trader or automatically executes trades for a trader while he or she is sleeping, it is a kind of make money while you sleep thing but it not so easy as it sounds because most of the robots or indicators are lagging which means they are working behind the clock in other word it means when the signal are generated it is already late to enter a trade. If a robot generates a signal on a strong bullish or bearish trend then in that case you stand the chance to make some profits because of the trend continuation.
The great advantage of auto trading is that if it is installed on a Virtual Private Network (VPN) server then it has the ability to run your trades 24 hours a day and 5 days a week nonstop unlike human who needs time for family, friends or work etc.
The top traders or investors who are making cool money while they are sleeping, are people who have spent so much money on programmers to develop a portfolio of robots to monitor different types of markets patterns at the same time to generate signals from the portfolio of robots that is almost based on current market conditions and execute trades that is correlated to the robot from the portfolio of robots.
Disadvantages of robotic trading
Most of the trading robots are design to trade a specific type of market or pattern which makes it impossible to win in different types of market pattern or conditions.
The so called online Gurus use back tested result from their robots with nice looking trends and curves to the upside showing a number of gains or winning ratio but mind you the robots are working behind the clock so the result that are shown with nice result is not an indication of a future result, so beware of it and learn to trade price action trading which guarantee a better result.
It has a great disadvantage for a trader to use a robot for his trading without having a VPN server connection because when there is internet connection problem or power outage then a trader will not be able to make urgent adjustment to trades except the trader call his/her broker and fortunate to receive urgent attention.