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Computerized Trading Systems vs. Human Traders

Posted by David Bean on

What is the difference between an automated trading system and human trading?

Often times, absolutely nothing when going through a losing streak or drawdown. A disciplined human trader can cut their losses short and minimize the number of trades per day to limit daily, weekly, or monthly losses. It does take some time to get to the point where the human trader can limit losses and keep them small, but it is something that is achievable.

Here is when computerized/automated trading systems matter though:  winning streaks and capturing big moves. The hardest thing to learn for the human trader is to ride winning trades. Can you capture big moves the way a trading system could in February and March? When volatility picked up last month, we talked about removing profit targets (on Feb 10th) on some stock index strategies. Here is the article.

Most traders never get to the point where they can ride a big winning trade into the close. This is why computerized trading systems typically beat humans.

It has been the way to trade lately and one of our recommendations going forward. You can sign up for a Seven Day Free Trial of Cobra III below the video. Cobra III E-mini S&P did well on Monday as both versions traded in the portfolios. We show the latest results in the video below with $25 round turn slippage and commission.

 Seven Day Free Trial Cobra III E-mini S&P
*automatic monthly renewal after 7 days
*you can cancel your subscription at any time without notice
*Email Us your platform information once you sign up
(Go to Help/About and email us a screen shot)

Cobra III E-mini S&P Hypothetical Performance Summary
$300 Stop Loss, $600 Profit Target, No Slippage or Commission


Cobra III E-mini S&P Hypothetical Performance Summary
$600 Stop Loss, No Profit Target, No Slippage or Commission

 Download MHT FIles

 


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