Discretionary vs automated trading?

<p id="isPasted">Discretionary trading is where you push the buy and sell button.</p><p>Automated trading is where a computer automatically run a trading strategy implemented as a program.</p><p>As to "rule-based trading", some providers of platforms for automated trading call this "rule-based trading", but this is incorrect, since all trading is based on following a set of rules.</p><p>The successful discretionary trader follows a set of rules, strictly.</p><p>The automated trading system follow a set of programmed rules.</p><p>Which is best - that’s up to the trader and his style - but operating in high timeframes automated makes little sense, better to have the computer call you at interesting events, and you visually inspect the opportunity and place the trade - but highly subjective question.</p>

<p id="isPasted">I would generally go for discretionary trading. With automated trading you mainly going to end up with a scalping robot. Such a tool will generate a few pips here and there, but then could probably lose some more. This is especially hard if you are not an expert in MQL or any other language you use to program a robot.</p><p>I prefer positional trading, a type of trading when you hold your position open for weeks or even months.</p>

<p id="isPasted">I think automated or discretionary trading is better and even I am used to do algo trading with the automated application only. See the benefit of doing algo trading with the automated application is that you don't have to execute the trade manually, the application will automatically trade on behalf of you, and this will help you to make profits in a very small period of time and its saves your time. But make sure that while applying your strategy in the live market backtest your strategy first for that you can do paper trading when you get satisfied result on paper trading using correct historical data then only apply the strategy in a live market. If you trade without backtesting your strategy, then definitely you are going to lose all your money.</p><p>So, if you ask me which application is best for doing automatic algo trading, I will suggest you algoniti. There are many applications are there for doing algo trading but from them, very few provide automatic trading facility even the most used application streak doesn’t provide this facility. So, no matter you are a beginner or an experienced trader you are going to love this application. So, you may consider checking algoniti.</p>

<p id="isPasted">It depends on the person. Is designed a self-driving car less stressful than driving under dangerous conditions?</p><p>The stress of designing algorithms is you never know for sure the situation in which the trades will be placed. You can’t anticipate everything and there may be circumstances in which the algorithm posts suicidal trades.</p><p>The stress of monitoring algorithms is you have limited insight into why they are doing what they are doing. Depending on the type, you may have almost no insight, or a lot of insight, but it’s never like making your own decisions. When the algorithm is doing things that seem a bit off, and you’re losing money, it can be stressful to decide whether or not to pull the plug (the answer is almost always “no,” but that doesn’t make it easier).</p><p>The stress of discretionary trading is wondering if you are right. It’s easy to lose confidence in yourself. Moreover, it’s stressful to always have to decide, even when you’re deeply unsure.</p><p>Some people find algorithmic trading far less stressful; some find it much more stressful.</p>

<p id="isPasted">Contrary to popular belief, discretionary (traditional) trading is considerably harder than algorithmic/quantitative trading.</p><p>Buying on the latest guru opinion, analyst rating, news flow, hunch and getting it occasionally right is not difficult at all. Deriving a positive gain expectancy and making consistent money is extremely hard.</p><p>For years, the only flavor of financial ice cream was discretionary fundamental analysis. Back in those days, quantitative systems were generically described as “Black Boxes”. The irony is that those black boxes had explicit rules that made them predictably transparent. Meanwhile, what went on in the grey boxes of discretionary participants remains a mystery to everyone, including themselves. Then, ETFs showed up and unceremoniously reminded that the imperial wardrobe would qualify as indecent exposure across all asset classes around the world.</p><p>Ironically, quantitative trading is probably the most reliable form of trading for retail investors. Quantitative trading focuses on stats.</p>