The challenge for most forex traders today lies in the vast size of the market, the multiple fast-moving updates, and the market volatility. Even the most experienced professional traders are often unable to handle multiple financial market opportunities, even with robot traders. Without AI-based software, humans are naturally limited. Humans require more strategies, data analytics, a better understanding of new economical influences that robots can assist with.
Thinking quickly, controlling emotions, and exercising discipline are all said to be core components of trading psychology which we as humans need to develop in order to be successful traders. A certain mindset is needed for traders to be agile enough to think and fast, making decisions on the fly while jumping in and out of stocks. Knowing when to book profits and losses and discipline to hold steady with their own trading plans is key too.
As humans, we are good at seeing the big picture and overall structure as well as acting intuitively, but our emotions get in the way and emotional trading mistakes are the main reason why most traders fail to make money consistently on the market. Ultimately we should learn not to react to the market based on what happened in our previous trade. Winning or losing trades aside; like a robot, we should react only to the market based on what it’s currently doing and whether or not our trading edge is there.
Robots have the great advantage of executing and trading without emotions. If the robot loses a trade, it won’t go ahead immediately with another trade field because of anger or frustration. Instead, it’s going to wait until the next pre-programmed trading edge presents itself in the market. Robots can also be intelligent and smart, learning from past errors and successes.
It’s said that this emotionless characteristic of a robot to interpret and analyze human emotion is both positive and negative. They can only operate as programmed and cannot develop a ‘gut feel’ human trading instinct.
Why The Combination of AI & Human Trading is Best:
Successful forex trading relies on a combination of perspective on price movement and market mechanics in tandem with the emotionless discipline of a computer trading program. Experienced human traders can monitor the robots to start and top them according to the market conditions. Humans can adjust, train, and update the robots ensuring peak performance levels.
At Algo, we combine the best parts of AI – the robot’s inability to let previous trade results in influence their upcoming trading decisions – with the unmatched human intuition to interpret the raw emotion reflected via price action on the simple Forex price chart and a broader knowledge of current political and economic events that affect currency values.
Most important and unique: at Algo, we can promise you, humans, at the end of a phone or email to help with advice and technical support. The human touch.