The whole reason I started with forex trading was to develop a bot to do the trading for me. But before I did that I needed to learn forex.
When I found eToro my plan was to make some money while learning the whole trading part. And of course, like everyone else I got greedy with eToro and didn’t really care about the strategies people where using. If they had made a good profit, I followed them. In the beginning it all went good and everyone was making me a good profit. When I started looking into the trades, everyone was selling EURUSD and/or GBPUSD all the time, so of course it made a profit, both went steadily down for a couple of month, but when they stopped, all hell broke loose and the trades where erratic at best and the profits turned to losses. And here was the big problem with eToro. As long as the traders didn’t close the loosing trades, it didn’t show in the stats. So for every trader that wanted more followers, they just closed the losing trades. I mean, the traders would get money anyway, why care about small losses on the trading account when the affiliate account is booming? And this is why I left eToro. And I’m not saying that everyone on eToro is like that, but there are some of them. In order to be successful on eToro you have to spend a lot more time investigate the trades before you follow anyone. And as a newbie, you don’t have that much knowledge.
But, I still like the idea of eToro, I just don’t like the way they are showing stats and how they rank traders.
So, why do I think ZuluTrade is a better option? Well, for me, as my plan was to develop a bot doing the trading, eToro never was an real option in the long run for me since the don’t allow bots. But ZuluTrade does. Now, this is a very personal opinon and I don’t expect anyone to agree with me, but I think bots are the way to go. I felt like this since I started trading on betfair.
Let’s start with the downsides of bots first.
- More potential profit
- Possibility of becoming a popular trader on eToro or some similar site.
So, more profit and easier? Why choose bots?
- No emotions
- Less involvement
- A fun challenge
In the next posts I will start breaking down how to actually develop a EA in metatrader, but until then, happy trading!