Automated Trading
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Automated trading platforms
Using automated trading platforms, you can mirror or copy the trades of other often more experienced traders. You can fully automate your trading this way and it gives you the opportunity to trade, even as a complete beginner. For more advanced traders, it is a great way to not have to sit and watch your screen all day long. We offer a variety of different auto trading products to our clients, and we also support expert advisors trading bots for MT4.
Types of Automated Trading Solutions
There are two ways that investors can automate their trading activities: by using trading bots and via copy or social trading. Any approach you take will depend on your skills, experience, and preferences. In auto trading, trading software or bots execute trade positions in the market based on a specified strategy or a rule-based criterion that must be achieved. Some of the typically coded strategies include mean reversion, trend and momentum trading, and arbitrage strategy. When coding their trading bots, also known as expert advisors (EAs), investors can include rules such as buying only when the price is above the 100-period moving average or only trade during the New York session. Investors can create, rent, or buy trading bots to pursue automated trading, or they can access an automated trading platform. On the other hand, social trading allows investors to track, follow and copy/mirror the trades of their peers or successful investors on their personal trading accounts. Successful social trading requires robust technologies to ensure that trades are executed in real-time to mirror the ‘successful’ trader perfectly. Most copy trading platforms are fully automated, but others allow investors to choose which trades or signals to execute in their trading accounts.
Advantages and Disadvantages of Automated Trading
Pros
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Preserves discipline and minimizes the impact of emotions in trading
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It saves time and can be fitted with the schedule of any trader
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Allows investors to explore a wide range of opportunities and strategies in the market without any human burnout
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Improves order execution, allowing trades to be entered and exited at optimal prices to maximize profitability and limit losses
Cons
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There can be overdependence on technology and the automated trading system, and mechanical failures can have devastating effects
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There is the danger of over-optimization, with investors likely to create a system that is good on paper but is not suited to live to trade
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It may require frequent monitoring to identify potential risks such as connectivity mishaps and system failure
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Improves order execution, allowing trades to be entered and exited at optimal prices to maximize profitability and limit losses
Final Words
Despite its few drawbacks, automated trading platforms are generally beneficial to traders. They can help them explore more opportunities in the market and exploit them with maximum objectivity of their strategies.
Auto trading FAQs
Auto trading systems are not perfect, but when you consider that the majority of trading being conducted on major stock exchanges is reportedly auto trading it is easy to see that it clearly works when done properly. In fact, auto trading is nothing more than turning a trading system, the entry, exit and money management rules used to trade markets, into a programmed system rather than following it manually. Auto trading can even be considered superior to manual trading since it completely removes emotions from trading.
Auto trading systems are not perfect, but when you consider that the ma
Auto trading in the currency markets, equity markets, commodity markets, and cryptocurrency markets is all completely legal. There have been no regulations or laws passed in any country that prohibit auto trading (that we’re aware of). However, whether or not auto trading is allowed in an account is a decision made by the individual broker. Many allow auto trading, but some prohibit it for their clients. When you’re trading with us you’re always free to use auto trading to enhance your trading and potential profits.
Auto trading in the currency markets, equity markets, commodity markets, and cryptocurrency markets is all completely legal. There have been no regulations or laws passed in any country that prohibit auto trading (that we’re aware of). However, whether or not auto trading is allowed in an account is a decision made by the individual broker. Many allow auto trading, but some prohibit it for their clients. When you’re trading with us you’re always free to use auto trading to enhance your trading and potential profits.
There’s no trading method that’s inherently profitable, and that’s true for auto trading as well. It can be profitable if the rules that are used to program the system are accurate, but auto trading can also be a quick method to empty a trading account. In addition, any automated trading system needs to be monitored at all times. A change in the market dynamics has been known to change a successful and profitable auto trading system into a losing, money draining beast. So while auto trading might seem like an easy way to profit, the truth is there’s no easy way to profit from markets, although auto trading can make it easy to ensure you don’t miss any trades.