What is automated trading and what are the benefits?












What is automated trading and what are the benefits?

Can help you
automated trading in increasing the efficiency of your trading, by enabling the development the fastest strategies for trading CFDs. Learn more about the advantages of the platforms automated trading and discover how they can add value to your strategy.

What is automated trading(EAs) is?

Automated trading is a way to participate in the financial markets using the program executes pre-defined rules to enter and exit trades.

The trader will incorporate comprehensive technical analysis with adjust the parameters of your positions, such as the orders opening, pause, subsequent and secured.

You manage your trades from start to finish, which means that you can spend less time monitoring your positions.

Lets you automatic trading implementing many pages in a small period of time, with the added benefit in the output of the emotion from your trading decisions.

That's because all the trade rules are already included in the parameters that determine it, with some algorithms you can even use your strategies predefined to follow directions and training accordingly.


How it works trading robot?

First, choose a platform and set parameters of your trading strategy, you will use your trading experience to create a set of rules and conditions, and then will launch a custom algorithm criteria to place trades on your behalf.

Using these factors, usually on the timing of trading and the price that you must open it and close it when the quantity, for example, “buy 100 shares of Apple when it exceeds the average 50-day moving average 200 days”.

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Will monitor the strategy automated trading which are assigned constantly the prices of the financial market, will implement the page automatically if you meet the pre-set parameters.

The goal is to execute trades faster and more efficiently, taking advantage of the market events of specific technical.

A lot of people who are involved in Trading do not already have a lot of knowledge about trading process, so the popularity of mechanical trading systems is not surprising.

It is also available in large, so that all that is required is a computer connected to the internet – you don't even need big investment to start.

                  Automated trading

 

What is a robot EA and Forex?

Usually are assembled systems of the forex trading mechanism in the two categories - expert advisors, or EAs, are robots the forex.

Is the establishment of EAs by professionals with high skills and experience writing algorithms to analyze the market trends and perform the trading process, they are selected based on their level of knowledge and achievements, to avoid panic or anxiety on the part of traders clients.

Forex robot is similar – it is a software program designed to improve the market and trade on behalf of traders.

The difference between the two is that EAs don't say actively trading, while you do forex robots provide EAs traders trading signals.

And it needs the trader to decide manually whether to open a trading or not, on the other hand can For robots forex care trading process fully automatically.

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What are the platforms that you can use to control the robot?

  • The organization intends that you will use in automated trading on your trading preferences, in the light of capital, we have many options automated trading available to our clients such as..

MetaTrader 4

Customize your trading experience by building algorithms trading your own expert, and the establishment of indicators, and a set of requests.

In addition, import Expert Advisors EAs)) to help you find the difference according to your preset, you can EAs either be notified of the opportunity or the open position automatically.

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What are the benefits of trading robot?

With automated trading, you can:

  • Download training your strategy according to your timeline – perform trades automatically, day or night
  • The reduction of the influence of emotional reactions with the planned strategies
  • Identify new opportunities and Trend Analysis a wide range of indicators
  • Perform many of the operations of trading in actual time and remove the manual execution

Has already discussed some of the benefits of automated trading but let's go further, in a more detailed form..

 

  • EAs remove some of the mental pressure to deal, despite the fact that people who use EA, they still need to know when to intervene and when not to be so, and it still represents the pressure / psychic skill.

 

  • RFID EAs faster than humans can, when a signal in trade (entry or exit), there is no hesitation on the part of EA, on the other hand humans can freeze or questioning the trade, a quick reaction time for automated trading is beneficial in the conditions of fast market movement.

 

  • Can software mechanism to monitor the markets much more than human, individual can in any moment to control a small number of markets effectively, but EA can control hundreds, once the to lose any EA to find opportunities in all markets that are programmed to monitor her.

 

  • Will you take trades that fit the strategy, even if you feel like following otherwise, if the strategy proved to be profitable, it is a good thing.

 

  • Force the following to simplify the strategy down to a level that can be programmed, this operation gives traders insight on their strategy.

 

  • Automated trading is a real test to see if the strategy is viable or not, need manual trading on many variables, while the program does what it is said, the automation test strategy is a good way to see if the strategy is viable under current market conditions.

 

  • Once an automated strategy, can be easily selected in different market conditions (using the price data of the current or former), This will be about the strengths and weaknesses in the program. For example, it may be performed well in markets are common, but weak in the markets of the domain, can then use this data to change the program or to show the following when it is appropriate to intervene and stop running the program or run it.

 

Cons of automated trading

  • Still requires a lot of work to create and / or maintain the program.

 

  • It takes manual intervention sometimes, which means that automated trading is not away from the hand, for example, if the volatility has increased a lot more than usual, you may need to change the size of the site manually.

 

  • Some programming skills are required certainly even if you buy a program, most of them don't come with support or updates to a long-term plan with the changing conditions of the market, if you don't know how to change the program, then the software would be in the end useless (non-profitable).

 

  • Buying the program means not knowing what's under the hood, one of the advantages of an automated strategy in that they force the user to know the details and risks of the strategy, is the loss of this feature when you buy the program to someone else.

 

  • Still the user is facing the pressure of the same, such as the desire to intervene when the program just fine (to protect profits) or bad performance (capital protection), there is also a psychological pressure when determining the appropriate time to.

 

  • Not likely to buy automated trading program via the internet to the results of positive long-term, it may work for a short period of time, but in the end the person who uses it to maintain it, and knowing when to intervene and when not to be so.

 

A final word on the use of the software automated trading (EAs)

Can be automated trading a useful skill and lucrative, but usually can not buy this skill for a few dollars on the internet, requires a trading robot a lot of work and skill, to create the EA and maintain it effectively, the trader needs to knowledge in trading and programming.

Requires automated trading also time, it's not something you set and forget about it, you should inspect them routinely and may be manual intervention is required when the occurrence of random events or changing market conditions.


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