All trades should be automated? is an idea that appeals to many traders who are drawn to the efficiency and emotion-free nature of algorithmic trading. Automation certainly offers powerful advantages, but it is not always the best solution for every trading style, every market, or every trader. In reality, the decision to automate should depend on your strategy, goals, and personal preferences. This article explores when automation makes sense and when manual trading remains valuable.

The Advantages of Automating Trades

Automation can improve trading performance in several important ways:

Emotionless Execution
Automated systems follow rules without hesitation, fear, or greed — key emotions that often sabotage manual traders.

Consistency and Discipline
Bots apply trading strategies exactly as designed, ensuring that no rules are skipped or adjusted on the fly.

Speed and Efficiency
Automation executes trades instantly based on predefined criteria, making it especially effective for high-frequency or scalping strategies.

24/7 Operation
In markets like forex and crypto, automated systems can capture opportunities around the clock, even while you sleep.

These benefits explain why many traders are drawn to the idea that all trades should be automated?

When Automation Might Not Be Ideal

However, there are clear situations where manual trading is still superior:

Fundamental or Discretionary Trading
Strategies based on news events, earnings reports, or broader economic trends often require real-time human judgment that is difficult to program effectively.

Adaptation to Unusual Conditions
Unexpected geopolitical events, sudden market crashes, or central bank surprises often demand flexible, discretionary decision-making that rigid bots cannot manage.

Strategy Complexity
Some advanced strategies involve subjective assessments like evaluating chart patterns or interpreting market sentiment, which are hard to automate reliably.

Personal Enjoyment
Many traders simply enjoy the process of analysing markets and making decisions. Trading manually can be intellectually stimulating and rewarding beyond just financial profits.

These realities show that automation, while powerful, is not always the best choice for every situation.

Best Practices for Using Automation

If you choose to automate:

• Automate Clear, Rule-Based Strategies: Systems work best when rules are objective and unambiguous.
• Monitor Bots Regularly: Even the best systems require oversight to catch technical issues or changing market conditions.
• Use Hybrid Approaches: Some traders automate parts of their trading (like entries or exits) while keeping overall strategy decisions manual.
• Continuously Improve: Backtest, forward test, and optimise bots periodically to keep them aligned with market dynamics.

This approach balances automation’s strengths with necessary human oversight.

Conclusion

All trades should be automated? Not necessarily. While automation offers many advantages, it is not a universal solution. Some strategies require human flexibility, judgment, and creativity, which no bot can replicate perfectly. Smart traders understand when to automate, when to trade manually, and when a hybrid approach offers the best of both worlds.

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