Set and Forget Trading is one of the numerous trading strategies you can use throughout your trading career. It is a hands-off, preparation-based strategy. This can be an excellent trading system for traders who are strict about adhering to their regulations if you want to free up time to do other things while your transactions are automated.
What exactly is set and forget trading?
The strategy is exactly what its name implies: a method in which everything is set up before trading and then all actions are left to be automated in accordance with predetermined parameters.
You must realize that set-and-forget trading is a trading method rather than a trading strategy. You select your trade’s entry, stop losses, and profit objectives to effectively manage it without having to perform the necessary up-to-the-minute labor once the transaction has started.
Benefits of set and forget it trading
There are several benefits that you can get from set and forget trading, including the following.
Less emotional trading
A straightforward “set it and forget it” strategy, when executed and adhered to strictly, can improve your trading results. The immediate advantage is mental. When you “set and forget,” you agree to let a trade go where it wants and accept responsibility for that outcome.
If you “set and forget,” you won’t watch trades unfold live and experience an emotional rollercoaster. Let the market handle the work while you go somewhere and have fun. You can recover your social life by spending more time with your family, being more accessible to friends, and setting and forgetting.
Less time watching charts
In addition to the stress reduction that set and forget can provide, it can aid traders who have a chart-watching addiction. Let’s be clear about this: Chart-watching is frequently a bad habit. Chart-obsessed traders are more likely to make poor trade judgments, lose money, lose sleep, and not enjoy their jobs. You can set and forget anything with set and forget, even charts.
Improved daily routine
Set and forget helps lessen anxiety while boosting self-control and sustaining healthy routines. When you put a well-researched and well-thought-out plan into action, it will begin to get ingrained as a daily pattern that is repeated and beneficial, supplanting possibly harmful prior behaviour.
You’ll probably notice an improvement in your sleep once the tension has been removed and the good habits have been reinforced. Downtime will be lot more enjoyable if you spend less time in front of the screen, have lower blood pressure, and have a more relaxed mindset.
Easy approach to trading
The ease of the trading strategy is one of Set & Forget’s main benefits. There is no need for involvement because the guidelines are quite clear. After deciding on your trade’s entry criteria, all that’s left to do is watch to see if your trade reaches its stop loss or take profit.
Potential to make an income
Many people study, work full- or part-time jobs, have families to support and children to raise. Some people may not have the time to monitor the charts and their transactions. Trading is still a good option for them because they frequently need additional revenue. For them, the set-and-forget trading strategy works perfectly because of this. They can trade and deal with other aspects of their lives while reducing their screen time.
Negatives of set and forget it trading
Despite the numerous potential benefits, like all trading strategies, set and forget trading does have drawbacks including the following.
Trades are managed upfront
The absence of timely transaction management is the first issue you’ll run into while employing set and forget. If you don’t manage your trade, you can find yourself very near to taking a profit before your trade eventually reaches its stop loss. You cannot react quickly to market movements and news.
You will win if the predetermined parameters pan out; you will lose if they don’t, and there is nothing you can do to change the outcome in the interim. There is never an opportunity to receive a portion of the earnings; everything is up for grabs.
Your trading strategy will depend on your character
Some traders find it difficult to stand away and not take charge of their trade since it goes against their character to want to be more active. Traders develop a strategic plan for themselves that fits their personalities in order to maximize their trading ability and deals. If set and forget is not one of them, using that strategy can reduce their revenue.
Trading during the unexpected
The potential for a response delay before an order is opened is another issue traders face when employing set and forget. A trader might decide to cancel a transaction or make adjustments in advance of a major news occurrence, for instance, in order to get out in front of it. Set and forget makes this more challenging.
Making money quickly with the set-and-forget strategy
The final drawback is for traders that aim to profit from each trade individually. A set and forget trading system is not appropriate for this strategy. When traders don’t manage their trades, their chances of making a profit are reduced. The set-and-forget strategy will only pay off over a lengthy period, such as months or a year.
Final thoughts: is set and forget trading any good?
It can be a good way to gain long-term success in the market if your trading mentality fits the approach of “set and forget.” Like all other trading systems, you must examine your trading style in great detail to determine if this one is appropriate for you. You must be aware of your personality, how you handle stress, your demands, etc. No matter how effective a method is, it won’t work for you if it clashes with your personal style.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.