Last Updated: March 25, 2025
This article is reviewed annually to reflect the latest market regulations and trends.
Imagine a world where trading floors are silent, human intuition takes a backseat, and algorithms dictate the market’s every move. That world isn’t the future. It’s happening right now.
Recent reports suggest that a staggering 90% of all forex trades are executed using trading robots or artificial intelligence-driven strategies.
Even back in 2019, automated bots controlled around 70% of the market, and their dominance has only grown.
But can machines truly out-trade humans?
If history is any indicator, the answer might already be clear.
The Power of AI in Trading: How Jim Simons Revolutionised Quant Strategies
Consider Jim Simons, the legendary hedge fund manager who built the most successful quant fund in history—the Medallion Fund.
Using 500,000 lines of code and a team of over 200 PhDs, Simons averaged 66% yearly returns for three decades, crushing even the best human traders.
Now, as AI and machine learning continue to evolve, the battle between trading bots and human intuition has never been more intense.
Can everyday traders harness the power of auto trading robots to level the playing field? Or will the machines leave human traders in the dust?
Let’s dive into the auto Trading Bot Competition blog, where man vs. machine is no longer a hypothetical, but a real-world battle playing out in markets every second of the day.
AI and Trading Robots Are Definitely Changing the Way People Trade
Automated programs operate and perform tasks thousands of times more quickly and efficiently than humans – and trading is no exception!
Trading robots are powerful programs that increasingly use artificial intelligence and machine learning to improve their processes, trading based on predetermined criteria, so that the auto trading algo owners can take advantage of the numerous trading opportunities offered by the markets in an automated manner.
In recent years, use cases for Artificial Intelligence (AI) and machine-learning (ML) in the financial industry have increased, especially in the trading world.
Many even wonder if there is still room for human-traders in the future…
Major exchanges like Wall Street are massively investing in embracing trading with AI and ML to quickly analyze large amounts of data, make accurate predictions, lower the risk of making bad investment decisions, and to be able to capture identifiable market inefficiencies and take advantage of them as quickly as possible.
Trading bots are now even available to retail traders, as most brokers and trading platforms offer options to create and code trading robots. Even without technical and programming skills, it is today possible for them to profit from automated trading via trading bots and algorithms.
But while trading relies more and more on computer science and technology to automate all or part of its process, humans are still needed to turn deep knowledge into exploitable trading signals.
Trading Bots Can’t Work Without Clear Guidance From Traders
As we have seen, trading bots are becoming increasingly popular in the trading field, and they are great tools for assisting (or potentially replacing) traders in live trading competitions.
However, it’s important to remember that a trading robot is only a reflection of your strategy!
They cannot run without you having first dictated the way they should behave – and they can only be successful if your strategy is sound, reliable, and clear enough to be followed – and of course profitable.
The first step is therefore to generate trading ideas and be sure that your strategy is easy to divide into smaller parts, so then you have a clear set of instructions for your trading robot to follow…
Think About the Following:
- Market(s) you want to trade (Forex, Gold, Indices, Cryptocurrencies, Stocks, Commodities…).
- Trading signals, setups, techniques, or filters you want to follow to open and close your trading positions (moving average crossover, RSI overbought and oversold conditions, news trading, arbitrage, market correlations…).
- Timeframe(s) and the best times to trade forex you want to base your trading decision on, which mostly depend on your trading style (scalping, day trading, swing trading, position trading…).
- Money management rules to follow (leverage, position sizing, trailing stop-loss and take-profit orders, pyramiding trading…).
You also need to backtest and optimise your automated strategy by looking at metrics like the Sharpe ratio, max drawdown, total return, profit factor, and Z score, among others.
Once you’re sure your trading bot works the way you want, you can validate it with a demo account.
Finally, you can go live, but remember to always monitor your bot and its results to ensure that it runs smoothly.
Many of Our Top 10 Traders Use Automated Bots to Take Advantage of the Markets
As Expert Advisors (EA) are accepted in the Tradingcup contest through the MetaTrader’s trading platforms (MT4 and MT5), many competitors are using trading robots to apply a variety of trading techniques to take advantage of automated trading strategies.
With trading bots, you can save time and energy analyzing the markets, opening and exiting trades, as well as managing your positions in accordance with your money and risk management rules in a timely and efficient manner, 24/7.
Because bots make all the decisions according to your trading plan, they also reinforce trading discipline and remove the emotional aspect of trading.
Manual trading allows you to deviate from your trading strategy, which may be occasionally advantageous but overall is a recipe for reactive, emotional trading.
Finally, if your automated strategy is successful, you will be able to boost your trading results by automatically applying it to several markets.
You can also open several trading accounts to run different EAs if you have multiple strategies you want to use in the competition.
So, are you ready to use robots as a substitute or a complement to manual trading to win the Tradingcup contest 2022?
Click here to register an account.
For more detailed insights on developing daily trading routines, risk management, and effective position sizing strategies, explore additional articles on Tradingcup.
Our trading experts at ACY and FinLogix are also great resources to guide your journey towards trading excellence.
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