What is Manual Trade versus Robot Trade?
Manual trade basically means you are placing each order of trade by yourself. If you are using indicators that are made available at the MT4 platform like FOREX Bollinger bands, MACD, stochastic or moving average, to help you in decision making of entering a trade, you are still paying ZERO commission. If you are using a modified sets of indicators by some brokerage firm, you may still be subjected to a certain fix commission or lot size basis commission.
Robot trading means acquiring a software/ scripts, or so callled the expert advisor for your account. Therefore, the trades will take place according to what was written in the software (the formulae in the software are the gist of the brokerage firm business), in other words, you will not be actively participate in the trade. Nevertheless, some of such expert advisor would still allow you to intervene the trade; you will not want to do that too often, because you may mess up the setup. If you can’t help but sit there watching how the trades took place or too helpless to trust those software then you might as well quit subscribing to the broker service and do your manual trading.
So, what FOREX automated trading software is good enough for you to acquire? The first answer is: if you are good enough to do Forex trading at all! If you are consistently achieving your target and are able to control your trading psychology or emotion, then I say you are as good as a robot yourself :lol
You will find most trading softwares (at least those that I have seen) are using hedging rules within the same currency pair, else it would be a scalping technique. With the new NFA ruling, many of such softwares are no longer of use. Nevertheless, some of such softwares tend to have very high risk management, so, choosing a trustable software will very much depends on your appetite and your risk profile. And don’t forget, these softwares are still written by human, so there is again no 100% winning. One promises return of 40% per month on average with high risk level of 75%; 1 loss can only be recovered by 10 trades! Another promises 40% return a year… slow and steady, low risk… well, it all depends whether you are a gambler or trader again!
Nevertheless, the main goals of the softwares or robots are still to ensure giving most profitable returns to the brokerage firm themselves first and foremost, then next is making sure the traders also make some amount of returns.
Apart from your risk appetite and the return (loss) of investment, commission or charging method impose by the brokerage firm is what you need to be careful of. Some expert advisor only charge a monthly subscription fee for acquiring software usage, however a licensing fee or registration fee could be a hefty one. Others are base on commission per lot size traded on each trade, therefore there is also a tendency that the softwares always aim for high number of trades/ ‘volume’ driven.
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