There are many myths and stereotypes about automated trading, especially nowadays when automated trading and automation in general is on the rise. Many of them, unfortunately, are still supported by bad developers. What are the most common myths and stereotypes about automated trading on Forex?
Myth 1: Automated trading is for scalping, grid, martingale and makes many trades per day.
The reason why is not automated trading on Forex respected is mainly in these dangerous approaches. Trying to be profitable in long term with such methods like martingale, grid, averaging is silly wasting of your money. Scalping is in general for average retail trader inappropriate because it is dependent very closely on market and broker conditions like data feed, spreads, fees and slippages. There is a very tight line between profitability and unprofitability. Smart approach to automated trading for retail traders is in Low Frequency Trading. Automated trading systems with low sensitivity to market conditions and longer time horizon are optimal for retail traders. With average technique, inaccurate market data and slow access to liquidity, you should trade approach where your chances are the biggest.
