Rules-based trading in Retail FX: getting the robots to do all the work

There was a time when people dreamed of tomorrow’s world; a place where robots did all the work and humans sat around, directing operations and getting fat. For traders in electronic foreign exchange trading, that day is here. Rules-based trading in retail FX is now a robot-friendly zone. Heather McLean takes a look at what the major pundits in this industry have to say about the decision kick back and letting R2-D2 and C3PO take over.

Buy or DIY? If a retail trader chooses to trade with an automated system, they can either purchase or design their own system. Yet the main motivation and a foundation for automating a strategy is the existence of such a strategy at all, scientist and developer at M I G Investments, Anna Serbinenko, claims. She says only traders that already have a consistent trading approach requiring little to no human decision making and generating stable profit, would usually consider automation applied to real money. “Developing a consistently profitable strategy can be time consuming and knowledge demanding. Trading experience plays a non-negligible role in the process,” she states.Although creating an automated trading system can provide almost unlimited customising options and flexibility, there are also risks. For one, explains David Stuart, chief operating officer at Alpari UK, technical expertise is required to create any system; the more complicated your trading strategy, the more difficult it will be...continued

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