Markets Are Cyclical
Everything that is happening to the market today and will happen tomorrow has already happened to it in the past. It doesn't matter which market this is. What happened in the stock market in the early twentieth century can be traced today. Similar phenomena are found even in the cryptocurrency market, the appearance of which a hundred years ago was unthinkable.
How can this be useful? You can use the knowledge and skills of more experienced traders in situations that have happened before. Today, the world economy is in a crisis. Learn more about the financial decisions made in the past: which ones were successful and which led to losses. Use the acquired knowledge in modern realities.
Don't Throw Out Old Strategies
Due to the cyclical nature of the market, strategies and Expert Advisors that have ceased to be profitable today cannot be considered obsolete forever. If you are planning to linger in trading, don’t throw away your old tools. You may need them later.
If you notice that the results of your trading strategy or robot have significantly decreased, then you should change their settings or switch to new ones. At the same time, old tools should not be thrown away. You can run your trading robot on a demo account. You will not risk real money and be aware when your faithful assistant starts to bring profits again.
There are no restrictions on the use of demo accounts in FXCL. You can use them to test your strategies while trading on a live account.
Remember though that your strategy or robot might not become relevant immediately. It may even take more than two years. However, if they brought stable profits in the past, then the wait is worth it. The main thing is not to quit trading for good and use alternative strategies.
Robots and Fundamental Analysis Are Not Compatible
Today, even the most advanced Expert Advisor cannot replace a real trader, as it is not able to feel the mood of the market or produce high-quality fundamental analysis. A trading robot remains just a machine.
If the seller is trying to convince you that the program understands the market thanks to artificial intelligence or neural networks, then it is nothing more than a marketing ploy. At least for now. No machine can analyze the behavior of the market better than an experienced trader.
In the next article, I will share a few more facts about markets and trading with you. Don’t miss it.