You like the idea of trading Robots? You better forget about it!

Hey Trader, hope everything is going well…

The market has been painfully slow in the last couple of months… have you noticed it?

Short term ranges on most pairs…

There are two reasons for this:

1 – Summer trading. Trading volume drops significantly during July/August, I’m glad we are about to be over with August…

2 – FED interest rate. Traders and investors want to know what is going to happen in the next meeting, will they hime interest rates like they have been cluing?

I think those are the two main reasons why we have seen very low volume in the last couple of months.

But today looks like the market could be waking up, its starting to move and that’s good for profits :D

What’s your take?

Now on to Trading Robots!

Trading Robots sound awesome

I have to agree with that traders, it sounds really awesome!

The idea about having a computer place your trades automatically while you spend your all day long with your family, traveling, on the beach, running, playing guitar, or what ever you enjoy doing… sounds awesome!

Then there is some talk about backtesting your robot… using certain periods of time, sometimes these robots include some kind of risk management, position sizing, so on and so forth.

After backtesting it on certain or fixed periods of time, they come up with an awesome track record, awesome returns, etc.

One of the Trading Robots promises are that they remove emotions on your trading therefore they can make mistakes.

Then, you start trading your robot on your live account with disastrous effects.

The idea of trading like this sounds awesome! and you know something, we might get to that point in a few 50 years or so…

When artificial intelligence (AI) or neural networks really begin to “learn” because as of now, they are not capable of learning, they just follow some rules and that’s main reason sooner or later they’ll all fail.

Your Trading Robot will never be able to do this

I believe that one of the most important aspects of trading, one that gives you a real edge on your trading is being able to adapt to the market conditions.

In order to get results, you need to adapt! You cant trade everyday as if the market conditions are always the same.

You need to first try to identify what the market is doing, and once you understand it, you need to trade it!

Only when you have a clear understanding of what the market is doing, you’ll know what is likely to happen, only then you have an edge.

Your trading robot will never be able to do that!

So please trader, stop dreaming about it. Trading is no easy task, that’s what you need to understand, its not an easy job, but once you start getting results, its probably the best job on earth!

What do you think?

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Raul Lopez

I’ve been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .


  • Dmitro

    80% of trades made by algos, you say they don’t work. Are you shure?
    You say robot can’t learn, and it’s true, but robots don’t need to learn when they trade, humans learn and make robots. Robots don’t need to be complex, because one robot made for one simple strategy.

    • Raul Lopez

      Thanks for sharing your point of view… I still think that in order to succeed you need to adapt EVERYDAY to the market conditions, otherwise you are doomed… and Robots will never be able to do that!

  • Chimezie Charles Maduka

    i totally agree with your insight. Thanks for sharing. I’m looking forward to being part of your trading room

    • Raul Lopez

      I’m glad you liked it! Let me know if you have any question!