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Do you have to learn manual trading when you only use a trading robot?

Can a robot replace your manual trading?

We hear a lot of people say that they want to use a trading robot in the forex market because they can't, won't or don't have the time to learn how trading works. This even includes us when we were new to the trading world. It's quite common to choose to use a forex robot that can do everything for you instead of having to spend hours in front of screens and graphs to learn how to trade on your own. It usually works well when the market moves in a favourable direction for the robot's strategy, but there is a huge benefit in learning how to trade - at least the basics and some basic concepts.

Regardless of whether the market is favourable or not for the robot's strategy, it can be useful to understand what the strategy actually is and which parts it includes. If you learn concepts such as H1, pips and lot size in trading, it is much easier to understand how your robot "thinks" and works. If you have the basic knowledge of the concepts, you understand the strategy behind the robot and questions such as "why did it do that?" or "why didn't it close there?". don't pop into your head. You have simply gained an understanding of your robot, which almost always means you feel much more confident and calm in your trading.

Many robots (including the one we use) have different settings that you are responsible for setting yourself. Even though most robots come with some kind of default setting that usually works great, it's a great advantage to know what all the settings mean and if there is anything you can benefit from adjusting yourself.
One example is the attitude towards risk. Risk is one of the most important things in trading and something you should be aware of. What risk are you willing to take?
To be able to influence the level of risk, you need to know what the risk setting does and how it works - otherwise it can be very wrong. A common principle of this setting is that the lot size of your positions changes when you change the risk setting - so it's good to know what lot size, for example, means (the size of a position).

On the other hand, using a trading robot can be the first step to learning how to trade manually. Instead of seeing the whole concept of "trading" as something extremely large and abstract, it may feel easier to start by learning about your robot and the robot's strategy. Then you have easily found where you can start your journey and then continue to learn manual trading in the area that seems interesting. It is quite common for people who initially say they are not interested in manual trading to start experimenting on their own after a day of using a robot.

What we believe is the most important aspect of why you should learn manual trading is when the market does not move favourably for your robot - because such occasions will always occur from time to time. It is then important to know how your robot will act in order to feel confident. But it can also be useful to know what actions you can take if the unfavourable market continues to reduce your risk and exposure and not risk losing all your money (blowing the account). This may involve closing certain positions or part of a position, taking a hedge or parrying your risk with both a capital deposit and a reduction in your risk attitude. From experience, we know that these situations are much easier to handle if you feel that you have mastered basic manual trading and, above all, have knowledge of your robot.

So even if you don't plan to trade manually, you should acquire a basic knowledge of your robot and of trading in order to feel more confident, to know why certain behaviours occur and to know how to manage your trading account if you find yourself in a more difficult situation.

// Svenska Forexgruppen