While FinTech Ltd. Sure sounds like one of those binary systems that are too good to be true and you can’t wait to employ a trading bot like that to enhance your business potential, we would ask you to think twice. Trading bots are not humans and to trade efficiently, human discretion is of prime significance. A trading bot operates on the basis of trading rules that are fed into the system but there could be a number of circumstances when technical failures might end up making more losses than a trader would. Listed below are some of the disadvantages of using a trading bot.
While the theory behind using trading bots might seem simple, it isn’t really that easy and uncomplicated as it seems. Apart from setting up the software, programming the rules and watching over the trade, there are a number of issues that you should be aware of. It is indeed a sophisticated technique of trading but is not infallible by any means. Since the trade order resides on a computer and not a server, an order might be sent back to the market if you lose net connection. You as a trader will have to experience the learning curve while using trading bots and should always start with small trade sizes.
If you thought that using a trading bot would mean zero monitoring while you are out and about doing other things, you have got it completely wrong. Automated trading systems require constant monitoring if you want to enhance your business venture. There could be a number of problems like connectivity issues, computer crashes, power losses and system crashes. If the trading is not monitored in such circumstances, you could face irreparable losses.
It has often been seen how over-optimizing ends up creating systems that look good on paper but are absolutely unreliable when it comes to live trading. The parameters that are adjusted to make a near-perfect automated system, could completely fail in a live market.
On a concluding note, automated systems like FinTech Ltd or a trading bot might seem quite appealing for a number of reasons but it cannot be a substitute for careful trading. Instead of investing in trading bots, it is a much better idea to invest time and money in learning the right and effective strategies of trading. Mindlessly employing trading bots for your business could eventually do more harm than bring profits.