Bitcoin exposed the world to the advantages of Currency Trading. In no other asset class are returns like we have seen in BTC/USD possible. Of course, what goes up must come down – so there are just as big risks in Currency Trading. Nonetheless, Bitcoin has attracted the eye of investors globally, and deserves a closer look. So the big question everyone is asking, how do we replicate the results of those who bought BTC/USD at $1? Unfortunately, the answer is that’s not possible. The run up from $1 to $20,000 was a once in a lifetime situation. And the chances of it happening again in another Crypto currency are also highly unlikely. So just accept it, and move on. There’s lots of opportunities in Crypto!

The problem is that even with the explosive returns, an investor would have had to buy and hold for several years. This is not as easy as it seems. As the price goes up, the tendency is to sell and take the profit. But when to sell? That’s the key. Like anything, it comes down to trading. Stock picking is hard enough, but once you’ve picked your stocks you want to invest in, then you must pick when to buy and sell. This is known as ‘entry timing’ – and when you have a profit, you must at some point ‘sell’ which is ‘exit timing.’ All this must be done with clockwork precision or else you won’t capture the whole move. Sound difficult enough? That’s not all.

Even if you are a PhD Wharton genius and are able to successfully do this, imagine having to repeat this success 100 times or 1,000 times – that’s what’s necessary to earn consistent profits with such a methodology. The point is that, even if you are able to perform abnormally well, are you able to do it week after week, month after month, year after year? There are hundreds of cases of traders that were able to create positive returns for 10, 20, and 30 months in a row without any losing month, only to be followed by a huge drawdown. Trading is taxing on the brain, body, and mind. A skilled trader is subject to all these flaws no matter how superior he may seem to be. Continued positive returns created manually are an additional debilitating psychological factor; the trader may then be subject to the “Superman Complex” and may make bad decisions because he thinks he can only make good decisions.

The solution to the human problem is to use computers. This may sound simplistic, but it is. Einstein’s theory of relativity is boiled down to the simple E=MC2. Genius is the simplicity. The use of computer aided trading methodologies opens up a universe of possibilities not possible to achieve by a human. There are thousands of approaches to developing and building automated, algorithmic systems so this argument is not to say that all algorithmic systems are good. But they have many, huge advantages – the most obvious being they don’t get tired and don’t make mistakes. They are capable of being back tested and forward tested (although this by itself isn’t an indication of how a system may perform, it is a lot more information than you can derive from a human trader).

Algos come in many shapes and sizes and are offered sometimes through hedge funds or managed accounts that have extremely high minimum account sizes (such as $1 Million or even $5 Million). Retail platforms such as Meta Trader opened a development platform to all, which led to a mass market approach to algorithmic development. Since then, algorithms were no longer the sole property of rich Elite hedge funds. Of course, the majority of systems created by amateur hobbyists are junk – but not all. The key difference to understand, when an investor is choosing an algorithm – you are evaluating the methodology, not the market itself. Types of methodologies include trend following, swing trading, statistical arbitrage, momentum, artificial intelligence, technical analysis, carry trade, and many others.

FXBOT.MARKET is designed specifically for self-traders who want to trade robots with a specific methodology. With our FX Trade Bot product, we copy the trades of the robot directly on to your account with our Botomation technology, ensuring consistency and reducing trader error. You can still control the robot as you want; set the leverage, opt-out of specific trades, reverse trades, close all trades, or modify target levels. Or you can simply step back and watch the robot do the work for you – it’s all in your hands.
Is there a downside to all this? Of course there is, a big one – the robot can lose. That’s the nature of investing. A good investor tries to have more wins than losses. As any investor will tell you – it’s impossible to win all the time. The idea of algorithmic trading is that it puts the probability in your favor. By using a quantitative, rather than a qualitative approach, it’s basing the strategy on statistics, rather than opinions.

FXBOT.MARKET is free to register – we also offer free market tools such as market data, market clock, market calendar, discussion forums, and more. If you choose to buy or rent a robot, it is at the terms of the seller. FXBM takes 25% as our fee. We aren’t a broker and never will be – you are free to trade on the broker of your choice. Currently our Botomation Copy Bot supports more than 2,500+ brokers on the MT4 platform. We put you in control – after all – it’s your account.

You can have an unlimited amount of subscriptions, that means if you use 3 robots, you can monitor them all in your FXBOT.MARKET customer dashboard. And we’re adding more products every day. Sign up today at www.fxbot.market