Automated trading is a method of participating in financial markets by using a programme that executes pre-set rules for entering and exiting trades. As the trader, you’ll combine thorough technical analysis with setting parameters for your positions, such as orders to open, trailing stops and guaranteed stops. Your trades are then managed from start to finish, meaning you spend less time monitoring your positions.
Auto trading enables you to carry out many trades in a small amount of time, with the added benefit of taking the emotion out of your trading decisions. That’s because all the rules of the trade are already built into the parameters you set. With some algorithms, you can even use your pre-determined strategies to follow trends and trade accordingly.
Advantages of Automatic Trading
Forex trading is considered as one of the premiere markets to trade, and an automated Forex trading system can help by instantly executing all Forex transactions.
Let’s have a look at some of the main advantages of using automated trading software.
With automated trading, you can:
- Fit your strategy around your schedule – execute trades automatically, day or night
- Reduce the impact of emotional and gut reactions with planned strategies
- Identify new opportunities and analyse trends with a wide range of indicators
- Execute multiple real-time trades simultaneously and remove manual execution
Arguably the largest and most obvious advantage of using automated trading software is the removal of human emotion. An automated system is programmed to enter and exit positions in the financial markets once certain criteria have been met, removing any emotion (negative or otherwise) from the decision making process.
This allows traders to keep their discipline and stick to their trading plan, whatever that might be, as the system will ensure it is followed precisely and consistently. This means that traders do not have the opportunity to hesitate and question a particular trade due to fear of taking a loss.
It is important to understand that there is no trading plan or strategy which will win all the time. Losses are part of trading. An automated system has no emotion and, therefore, losses will not lead to a deviation from the overall plan.
With the same logic, automated systems prevent traders from overtrading, entering trades that do not fit within their plan or holding out for extra profit through greed.
Automated trading software can be, and is, utilised by beginners and professionals alike, both of which may find these systems helpful with decision making. Software is available in varying levels or price and sophistication. The manufacturers will also provide a demonstration model, allowing traders to familiarise themselves with the product prior to implementing it within their live trading account.
Ready to get started?
If you are ready to start trading Forex using the next-generation trading system, the Elite Forex Scalper is the perfect robot for you! Trade the right way, and simplify your trading with just a few clicks using Elite Forex Scalper.
Get access by clicking the button below: