Introducing automated systems for trading to entirely replace human traders is a subject many software developers have been trying to achieve over the beginning of the new millennium, but to what levels of advancement in that particular area have they progressed?
Generally, question of robots replacing humans is not only subject to trading or to calculating, but artificial intelligence has been bugging engineers for quite some time. In any specific field of work, having a robot doesn’t require them to be “intelligent” or to develop their own ideas, to grow with the solutions, as what they are programmed for they can do easily; for example, a robot is a computer that is programmed to execute your orders.
So the systems that automatically place trades and exit markets, change calls and whatever a person would do, can work restlessly for weeks, months, as long as there is an internet connection and power supply. An automated trader would calculate when to change calls, how to follow the market, should you program it to do whatever you do when the certain situation occurs.
But if that would be the case, everybody would do it, and everybody would get rich, wouldn’t they?
Even if we consider the misses and wrong presumptions of the machine (it is not the machine that would presume but based on the calculus given to them by their creator; “if -> then”), a person who is not well familiar with the market can benefit a lot from a robot of this sort.
But, talking about presuming and predicting; robots can only calculate – as humans can too (if we don’t take rumors and speculations in consideration) – based on data. And data is a fact from the past, as soon as it becomes data, it becomes something happened in past. Any next step could only be predicted should there be no negative value of something, so when that hypothetical asset reaches value of zero the next value would have to be greater than that, but we know the things in the market can go below zero, and there are no limits. So putting risk lines is not helping at all, only edge can be something reachable, but the time a robot reaches the edge, he can cleanse your account.
So what is my opinion:
I think that we need to use EA systems in some moments but traders need to control trades, change stop loss and targets, avoid trend EA when market is in consolidation.Till now human traders are much much better in trading.
If you do not agree with me read this article where Humans Beating Robots.