What’s great about automated trading it’s that it’s automated. You wake up in the morning and you see that you have made 200 pips (or maybe you have lost them). Something that happens, due to human nature, it’s to interfere with the opened positions: close them in advance, and so on. But, if we chose a good signal, a responsible one, and we trust him, why interfere. Yes, it’s true that we can get some additional pips, but we can also lose more.
Let’s make some examples.
I found a very promising signal that, with his MM250 money management system, has a very good risk/reward ratio (more info on karelsteiner.info).
When he can get on the right trend, can do huge jumps. Obviously, those jumps won’t happen in a few seconds, but in hours, and in the process there will be high and lows. If you stop them while they are rising, you can get an immediate profit, and in short term it can be a good idea. In demo I never thought to close them manually, but with real money, seeing those nice profits, it’s a tentation to think “let’s close halfway and took the profit home”. If you do that, the strategy will change, and in long term you will lose money.
In the disaster happened two weeks ago, GOLD MAX FX was losing a lot and I deleted it from the signal provider list. By doing this, its positions become orphaned, and were not closed automatically. I thought that it was a good idea to left them open to wait for better days. Instead the euro was stronger and I lost much more money than what I would have lost if I followed the signal..