Mechanical Forex Trading

Traders can be categorized as mechanical and discretional. A mechanical trader sets up some strict rules for his/her trading and sticks with them all the time. A discretional trader considers his/her power of judgment at the time of trading. In a mechanical approach you can estimate the likelihood of your success and based on that likelihood you can make correct decisions. A discretional trader has no clear way to evaluate his/her likelihood of success. A discretional trader could be more successful than a mechanical trader in short term but in the long run it is the mechanical trader who wins the most. There might be some exceptions but in general mechanical trading is the right way to go.

The ultimate mechanical trader is the computer. Even a highly-disciplined manual mechanical trader is not 100% free from discretion. If you leave your trades to your computer it never breeches the rules you have set for it.

A computer is a machine and it cannot setup trading rules. It is you "the trader" who needs to define these rules for the computer to make your computerized trading experience a successful one.