Automated Trading Vs Manual Trading: What’s the Best Option?

One of the biggest debates in financial trading is whether it’s most effective and efficient to utilise automated trading software or to trade the markets manually. The discussion rages on because most leading investment institutions and hedge funds now utilise well-optimised trading robots and algorithms to pull money out of the markets. :money_mouth_face:

Personally i have tested both and find myself more comfortale doing manual trading, mostly by using indicators like Fibonacci Retracement Levels combined with Bollinger Bands, RSI and MACD. Using trading robots was a choice i made several months ago when found an exchange integrating some nice trading bots…Those trading bots used AI to improve performance but after 4 months of testing the results i got were not enough to satisfy my trading needs…then i get back to manual trading.

Does that mean automated trading is the way you should go too? Would be nice to hear some thoughts about automated trading advantages or disadvantages compared with manually executing trades in the markets you know as well as some personal experiences you have had using trading bots. :+1:

4 Likes

Hi @deyner1984!! Personally I never had the chance to test bots for trading…I guess I enjoy too much the act of reading the charts. Doing Elliott Waves count is a very interesting puzzle and I can’t find anything so satsfying (except the company of a beautiful woman :sunglasses::smiling_imp: ) as catching the next move properly.

It is for real one of the things I enjoy the most in life so…let’s say I don’t even feel the need maybe to try a bot for doing trades. :grin:

4 Likes

Thanks @Tradelta for sharing your thoughts! I never tested before any trading bots, just wanted to venture myself to compare the ROI of both techniques, automated and manual, configured almost the same way regarding total funds to trade and comparing selling and buying points. Never tested Elliot Waves before…will need to take a look!

3 Likes

I have more experience/practice with manual trading. I do however, have a mutual fund that automatically rebalances itself, I think on a six month basis or possibly yearly. I realize this is a little different than what you’re asking but that is my only experience with ‘automated trading’.

3 Likes

I haven’t had the chance to use bots either, but I suppose that for large trading volumes, in a complex financial operation, it may be a cost efficient way of operating.

But besides those cases, and for personal investments, I prefer manual trading. Otherwise it’s no fun!

4 Likes

I wouldn’t have enough trust in automated trading if I don’t know to person who programmed it and even then only for a small percentage. Also I see automated trading as potentially very unprofitable shortcut in trading if you are not personally invested in making the software.

But to try it out and comapare ROI like @deyner1984 did, why not?

2 Likes

Great @karen! Thanks for your reply! :+1:

Portfolio rebalancing is somehow near to automated trading since your portfolio “sell and buy” assets by its own, rebalancing from time to time :slight_smile: without your direct intervention. So i guess is fair enough for me to say that you actually have had some experience with auto trading techniques. :pray:

2 Likes

Yeah, agree with you @mosigman. Automated trading and bots are more suitable for large trading volumes. I prefer, as you, manual trading, analizing some indicators, setting buy and sell orders to execute over time when certain market conditions are met…more funny and i guess: more rewarding all time!

Also, as @predictor points out we need to be very careful when using 3rd party bots as we do not know how are those bots programmed. It is true that there are several pre-made bots that work really fine, they are more than proven already and some of those bots are open source even, so you have the chance to setup those bots by your own and modify settings as needed…but agree again with Karlo: we need to be very careful with trading bots!

2 Likes