How do you know if something is working out the way you want it to be?

In this episode of Truth About FX, Walter digs into the enticing appeal of using automated trading robot and if you should or should not really use it. He talks about important factors that you should consider when making the decision, the problems that may arise and — if you do choose to use robots — how you should decide which one to use?

Hugh also shares his experience in using trading robots and how it turned out for him.

Download (Duration: 6:42 / 7.68 MB)

In This Episode:

00:37 – shortcuts

01:40 – crappy system

03:22 – a different point in time

04:21 – margin-called

06:10 – a discretionary trader

Tweetables:

Choose the one you can’t mess with. [Click To Tweet].

Just get it going and let it be.  [Click To Tweet].

The past is never indicative of future performances. [Click To Tweet].

Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.

Hugh: Hi, Walter! The idea of automated trading video appeals to me. Which trading robot should I use? I know that this is a question that you and I both get quite a bit, especially with the newbie traders or maybe traders who haven’t found success yet and are looking for shortcuts. What would say to that?

Walter: I really do not want to completely shift down this idea because I know there are people out there that do this successfully. But, when people say “Which trading robot should I buy?”

To me, the answer really is it’s the one that you will just load up and let it go and you won’t mess with it. You know what I mean? I know that sounds like a flipping answer or whatever but it’s true because the problem with automated trading is that, especially if you do not know the logic behind the system. Maybe you didn’t create it, you just bought it or something so it’s like a black box.

The problem with these is that we, as humans, tend to tinker with things. We’ll go in and we’ll make it so that we go “Well, the market’s changed” or, “You know, there is so much uncertainty so I’ll turn it off now” or whatever.

These things pop up and these are reasons for us to get in there and fiddle with things are really why often does not work for us. The other reason why it does not work for you is because it’s a crap system. It’s because it is crap and they’ve sold it with the 60-day guarantee or whatever.

Here is what I would say. Real simply, two systems that you should use: one, is the one that you’re not going to tinker with, that you’re just going to put on your account and let it go. You are not going to get there, turn it on and off. You are not going to adjust it or anything like that. You’ll just going to let it go.

For most of you, that is going to mean that it is a system that you know what it is so you had a program or your friend made it or something like it. You know what is it all about. That is probably true.

The other part of this is maybe you don’t know what is it a...