Forex Trading Automation – Taking Over in South Africa

Forex trading in South Africa has exploded over the last decade. Initially it was lagging behind the rest of the world and traditional stocks held the majority of the market. With the increase in Metatrader 4 brokers entering the country in recent times, the competition has forced prices down and the trading conditions have become ever more friendly to retail traders. The combination of these factors have allowed for a perfect environment for Expert Advisors also known as Trading Robots.

Institutional Robots

As is to be expected, there remains a large gap in quality between institutional trading robots for Banks, Hedge Funds and the like and retail robots. The gap however is quickly decreasing with conditions that are improving for retails traders and as new concepts are discussed and tested between amateur traders and coders on huge online trading forums that exist today. It is estimated that 83% of all institutional forex trading in South Africa is already automated and this is set to steadily increase until the professional trader is eliminated as a decision maker.

Retail Robots

Retail robots are becoming increasingly profitable. Gone are the days of the forex robot being an outright scam. With more and more people becoming familiar with coding in the MQL coding language the quality of robots have become very good. You still get your get rich quick scheme robots but if some research is done you can find a very decent stable automated trading system for in the $500 range.

Is automated trading more risky than manual trading ?

Quite to the contrary. If you can automate your strategy it cuts out the possibility of mistakes. The reason that it is perceived to be more risky is that you are not there to watch it and often in the past the strategy was deeply flawed and in its core risky. Automation is the way of the future and it definitely is moving in a direction where it may create a resurgence and possibly a total evolution of the forex industry.

Should you use a robot to trade? Two years ago I would have said steer well clear. Today I say absolutely.