5 indispensable tips to avoid losses and draw downs

An automated system is a nice thing,  because it can help you to trade exactly according to your rules,  even when you are not at your desk.

5 indispensable tips to avoid losses and draw down_CD_Cover

But it is also possible to lose a lot of money if you miss some important things.

 

The first thing that can cause losses is when your Metatrader4 loses the internet connection for some  reason.

 

Maybe because of a power problem or because of your cat sleeping on your keyboard while you are  anywhere else.

 

If your connection is lost, some strange things might happen,  because your system might do the  right thing for the wrong reasons.

 

It will have  old data until the connection comes back and suddenly there is a gap.

 

That gap might cause your system to decide that it is time to close all your trades for example.

 

So  I strongly recommend  to find out the impact of connection problems while you are testing with your demo account.

 

It might be costly in your  real account later.

 

The next thing that comes in the way of  automated systems  is when your computer stops working, maybe because of system updates that force a restart.

 

To prevent that, you might want to set your system settings to download updates and install them on the weekends.

 

If you run your system on a Desktop PC make sure to buy an UPS to avoid power interruption. That is one reason I prefer Netbooks or Notebooks. The integrated battery can keep my  systems  up and running for  at least an hour.

 

And if your trading system is in an environment where other people are around, you might experience strange behaviour that can be hard to explain.

 

For example it was not easy for me to  discover that some network issues occured because of my daughter who disconnected  the WiFi Repeater because she needed to plug in the vacuum cleaner for  5 mminutes.

 

Afterwards that repeater was plugged in again and I had no clue where to look for the error that occured about once a week.

 

These things do happen  and sometimes it makes  me crazy. Murphies law says: When something can go wrong it will!

 

So if you are out and about it is  handy to have  access to check out your system if something is  going wrong.

 

I  do use the mobile Metatrader 4 app for Android or Apple devices. It allows you to interact with your  trading account without a computer.

 

If you want to avoid anoying losses and draw downs, these simple tips can be a big help.

 

So take action now and make sure that you have your systems in place when Murphies law strikes the next time…