Swing Trading EA

Advantages and disadvantages of the swing system

Let's start with the advantages:

• Long-term trends:
  With swing trading, we benefit from the fact that trends form long-term price developments. By analysing them well, we can invest in trends that are still inactive and achieve returns throughout their entire movement.
• Cost-efficient trading:
  Some brokers charge fees for every transaction. This applies, for example, to the spread, the difference between the buy and sell price. Strategies such as day trading are therefore less cost-efficient as they are based on many transactions in a short period of time. By holding currency pairs for longer, we do not have this problem with swing trading.
• Analyses with many indicators:
  Analyses based on long-term periods are more reliable than short-term trading, where you have to react particularly quickly to signals that may turn out to be deceptive. Because we hold currency pairs for longer and look at price movements over the long term, we have more data and the opportunity to recognise reliable patterns.
• Not bound for the long term:
  Compared to other forms of investment, such as a savings plan or property, investments in swing trading are liquid. In addition, by capitalising on short-term movements within long-term trends, we make profits more quickly.

You see, there are many advantages that sound tempting. Nevertheless, it is important to look at the disadvantages as well. These would be:

• Learn trading knowledge & tools:
  Although we do not have to constantly monitor prices, swing trading also requires effort. This consists of learning the markets, their tools and the corresponding background knowledge in order to be able to analyse them reliably.

• Accumulation of swap costs:
  Instead of accumulating costs for each transaction, holding currency pairs for a longer period of time incurs potential fees in the form of swaps. These are interest payments that we pay as long as we hold the financial instrument overnight.

• Share price performance after close of trading:
  As we spend less time on monitoring, it can happen that we miss important developments. This is fatal if something happens during the close of trading (e.g. political events) that causes the market to tip immediately the next day.

• Riskier stops:
  Due to the long-term orientation, stop orders that are wider pay off. The generous stops give us higher potential returns. This leverage effect also applies to losses.

• fundamental trading risk:
  Speculation on the stock market always carries a risk. Things that are beyond our control and occur unexpectedly cannot be planned for, even with good analyses.

Our Expert Advisor takes care of minimising the disadvantages as far as possible. It receives the signals from a profit trader or a sophisticated strategy and trades them on your account.

The EA opens, changes and closes the trades, just like on the professional's account.

Only the leverage of your account should be at least 1:200. Otherwise the profits will be lower. There should also be at least 1000 USD / Euro in the account so that all trades can be placed by the profit trader.

In addition, please do not set the lot size too high (max. 1 % of the capital), as our system also opens several long-term trades in the Grid-System . In total, we always exit the swing with a profit.