Disadvantages of automated Forex trading : 1. Failure of the | fun joy

Disadvantages of automated Forex trading :

1. Failure of the mechanics of the system – Automated trading is a very sophisticated way of trading, but it is by no means without fault. What happens if the internet connection is lost? What happens if a trade order gets stuck on a computer and never gets to the server? What happens when the theory doesn’t match up to fact? In order to avoid being caught out, it’s always best to start small, allowing the system to work and find the minor adjustments required for optimal operation.

2. Monitoring is still required – While it might seem ideal to just get on with your day and let the program do all your Forex trading for you, this isn’t a very realistic idea. There are several issues that can occur such as loss of connectivity, power outage, computer crashes and system quirks that need to be watched out for. Failure to pick up such anomalies may result in duplicate, missing or completely wrong orders.

3. It might look good on paper but this doesn’t mean it’ll be as good in real life – It is fairly easy for an automated trading system creator to make their product look outstanding on paper. The creator can always perform excessive curve fitting and tweaking of a strategy, which allows it to advertise excellent results. Despite these results, the system could still be completely unreliable in live trading.

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