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Automated trading vs manual trading

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Pieter Schalley
272
Pieter Schalley  

Which one wins the battle?

Automated trading or Manual trading.

I want everybody's pro's and con's,

Who has experience with succesfull automated and manual trading?

Why do you chose the one over the other? (or do you do both?)

Thank you!

Sergey Golubev
Moderator
94676
Sergey Golubev  

I like both but I like to rely on myself (manual trading). As to automated trading so yes, it is good when I do not have time to sit near PC whole the day.
Both methods are good. And automated robot does not have any emotions (compare with me for example).

 

Tonny Obare
31513
Tonny Obare  
Automated. If you have a winning strategy why not convert it to a ea so you can do other things and still make money. Also note that a ea can trade 24/7 while a human cant so this could mean more profits.
phi nuts
2184
phi nuts  
Definitely automated trading. Though, I have to say this : since manual trade require manual market analysis, having experience of manual market analysis help a lot in creating an automated trading program.
Lee
354
Lee  
phi.nuts:
Definitely automated trading. Though, I have to say this : since manual trade require manual market analysis, having experience of manual market analysis help a lot in creating an automated trading program.
So far from what i've seen and traders i've been around very few actually win on both sides of the arena. Their are manual traders like Joe DiNapoli who have a 90% strike rate scalping 15-20 trades a night out of the market trading an account size many of us could only dream of. But this guy is God when it comes to trading and his methods can't eaisily be coded if at all. On the Auto side I haven't personally experienced an EA tha can continue to make money year in year out I would love to be proven wrong. My bet is on the Manual trader.
Steven Theobald
852
Steven Theobald  

I say, "It depends."   What is the level of education and practice of the manual trader?  My vote goes to the EA for the first 5 years.  Then IF the manual trader has been really studying and practicing, I believe the human brain can begin to filter out the noise and start to get an edge over the EA--IF he/she is careful and consistent, unemotional and disciplined.

I have been trying hard on the manual side for 7 years now.  While I am no Joe DiNapoli, it is finally beginning to pay off and I am getting some subscribers on the "Mt4 Real" signals list.  (No link here due to advertising restrictions in forum.)  

Based on the forum topic at hand, I share these stats to let you do your own analysis against EAs to answer the question "Which one wins the battle?"  I share it only to show what human trading is capable of after lots of practice. CAVEAT:  This is only three weeks into my system, but this is the most consistent performance that I have ever had: 

        I now have 166 trades with a 92% win ratio.  Relative draw down of 5%.  Profit factor of 7.  Recovery Factor of 15.  Sharpe of .7.   BUT CAN I KEEP IT UP???

It is ironic that I have not been patient enough to learn to code MT4 (now MT5).  I think that I can run circles around most EA's, with very low draw down, but I do get fatigued, and I hate being asleep during the bulk of the London session where it seems the biggest daily moves happen.  A nice EA would be great, even if it was just 50% as profitable as my live trading.  I have been bit hard SO MANY times following other people and their systems though (on Collective2).  It's been at least 50 systems over the last 5 years.  I think I will have to just buckle down and dedicate myself to some basic MT5 sessions.  Then I wouldn't be able to blame anyone but myself.   Oh wait.  I could still blame MetaQuotes!  In the meantime, I will just keep trading live.

It is encouraging to read that my experience as a manual trading may be a great boon to my coding--once I get started!

Muhamad Ridwan Harrist
140
Muhamad Ridwan Harrist  

I can say 100% automated trading will win if we compare with manual Trading :) cause automated trading can Trade 24/5 meanwhile manual trading only trade a few time in a day! and as you can see most of signal provider using auto/EA to get thousand percent profit meanwhile manual trading like me only get a small profits. :)

and one more thing, if you have big money, you can use EA or automated trading to get big profit in market! but if you only have small money! my suggestion is stay away from EA, cause I have bad feeling with EA :) lol


and just FYI, EA or automated Trading are really good friends of brokerage! but not good friends with small trader like me :)


pinoybboy2004
8
pinoybboy2004  

I have been trading Forex for a year straight as a full time hobby. I have had very abysmal results on my demo account with manual trading. I have exhausted several strategies and hundreds of indicators. I have finally found a strategy that I have been sticking to for more than 3 weeks. However, to this date I still am falling beneath break even.

My aim now is to practice manually ONLY on the daily chart. I want to minimize my trades. The hardest part for me was to stick to one or two time frames. I plan to run an EA (whether scalping or daytrading) for all other times. There may not be a "Holy Grail," but anything that has an edge on the market, whether 5% or 50%, is still better than my efforts alone.

The computer is cold, it doesn't feel, it doesn't sleep. 

Matthew Todorovski
3980
Matthew Todorovski  

Automatic all the way! Expert advisors can monitor and trade the market 24/5, and can open/close orders quicker than manual trading.

No emotions can get in the way! The Expert Advisor will follow a system precisely and execute trades with total efficiency.

You can be far more profitable with High-Frequency automatic trading than you could ever be with manual trading.

To achieve better than 5000% in two weeks is nigh impossible with manual trading - but not with "--edited by moderator--" Expert Advisor! 

Kiran Chandekar
1473
Kiran Chandekar  

automatic trading is best as you dont have sit in front of your pc or look for breakout as EA does this for you.

But you need to test EA with 10-13 year time frame to mae sure that your EA is profitable in the long run. 

Stephen Njuki
5180
Stephen Njuki  
Let me declare off the bat that I have been coding for a while now and I therefore have a bias towards EAs, however there is a strong case for manual trading. These days strategy tester reports are not worth much but what counts are trader logs from a live real account. On a very popular website that allows traders to broadcast/FTP their signals, the most impressive equity curves of the popular systems there are by manual traders. In fact in a recent contest published on that site the winners who returned more than 10000% in a little over 2 months, were trading manually. (At least am sure one of them was)

There is a certain intelligence that a human brings to trading  that perhaps no EA can,! I don't know I guess the jury is out there but developing a good EA involves more than just placing buy and sell orders.
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