Automated trading sounds like a dream: no emotions, no constant screen-watching, and the ability to execute trades 24/7. But is it safe? Is automated trading risky? As someone who has traded options for over 20 years, I can confidently say that while risks exist, they can be managed—and even turned into an advantage—if you know what to watch out for.
In this article, I’ll break down the risks of automated trading in plain English, explain how to minimize them, and show you why our Weekly Trend system offers a beginner-friendly way to get started.
Why Automated Trading Feels Risky—And Why It Doesn’t Have to Be
At its core, automated trading removes human emotion from decision-making. That’s a huge win for consistency—but it also means you’re putting trust in technology and predefined strategies. And yes, that comes with some risks. However, most of these risks can be controlled with proper planning, risk management, and broker selection.The Biggest Risks in Automated Trading
1. Technical Failures
Automated trading systems rely on technology, which means they’re vulnerable to software glitches, server crashes, or internet outages. If your system loses connection or malfunctions during a trade, it could result in missed opportunities—or worse, losses.2. Market Volatility
Markets can be unpredictable. Automated systems may not always adapt well to unexpected news, price gaps, or black swan events. That’s why strategies need built-in safety features like stop-losses and defined-risk trades.3. Strategy Risks
A strategy that works in one market may fail in another. Some bots also rely on “black box” algorithms, which can make them hard to monitor or adjust. This is why I prefer strategies I can review, understand, and control.4. Over-Optimization
Backtesting is great—but if a system is too “perfectly” tuned to past data, it may struggle in live markets. This is called curve fitting, and it’s a common pitfall for traders who only rely on backtested results.How to Reduce the Risks
Automated trading becomes far less risky when you:- Use a reputable broker like Interactive Brokers or Tradier.
- Automate with trusted tools such as Global AutoTrading or AutoShares—no coding required.
- Limit risk per trade (we recommend no more than 5% of your account).
- Choose defined-risk strategies like credit spreads, which cap your potential losses.
What Makes Our Weekly Trend System Safer?
Our Weekly Trend service is built for traders who want a simple, rules-based system with capped downside. We don’t trade naked options. We only use defined-risk spreads, meaning you always know your maximum loss before entering a trade. Here’s how we’ve performed with 5% risk per trade since 2013:| Year | ROI | Total Trades | Winners | Losers | Win Rate |
|---|---|---|---|---|---|
| 2024 | 159% | 157 | 90 | 67 | 57% |
| 2023 | 429% | 136 | 91 | 45 | 65% |
| 2022 | 76% | 84 | 43 | 41 | 51% |
| 2021 | 325% | 140 | 86 | 54 | 61% |
| 2020 | 318% | 141 | 95 | 56 | 61% |
| 2019 | 192% | 151 | 88 | 63 | 58% |
| 2018 | 97% | 124 | 70 | 54 | 57% |
| 2017 | 243% | 151 | 91 | 60 | 60% |
| 2016 | 136% | 127 | 79 | 48 | 61% |
| 2015 | 242% | 116 | 69 | 47 | 58% |
| 2014 | 367% | 126 | 79 | 47 | 63% |
| 2013 | 535% | 124 | 89 | 35 | 71% |
Want to learn more about the earning potential? Check out our detailed guide: Can You Really Make Money With Automated Trading?.
