Back in 2008 when commercial EA’s were entering the Forex market, some of us believed that if you have a good system, all you need to do is automate it, place it on a chart, “set and forget it” and you can then start planning your dream vacation.
Over the years, many of us came to the realization that automated systems do not last forever. As markets are always changing we need to continuously adjust, tweak, or change our strategies to keep them functional.
The truth is that markets do not care about trading systems, and sometimes it may seem as if it’s deliberately trying to undermine them as well.
Therefore, when using an EA, it’s imperative that:
1. You fully understand the logic behind the system. (If you don’t know how the system works, how will you know when it’s not working?)
2. You monitor the markets and are up-to-date with anything and everything that can affect it.
3. You are able to make calculated-risk decisions for when manual intervention is needed.
We found that the best systems which work long-term are ones where there’s a mix of automated and manual trading.
One of the good aspects of automated systems is that there’s no human emotion involved, however, although emotions can wreak havoc to any good system, sometimes human intervention is needed to preserve the system.
So, what if you don’t have the time to monitor the markets or don’t fully understand the system, what are your options?
There are a few options, like managed accounts, signal services, and trade copiers which are all similar. You’re basically letting professionals do the work for you.