What Is Automated Trading And What Are The Benefits?

Automated Trading

Automated trading is the best way to increase trade efficiency as it leads to quicker execution of CFD trading strategies. There are so many benefits of using the copy trading platform. Firstly, it can add a lot of value to your trading strategy. In general, automated refers to a method whereby traders can participate in financial markets through a programme that has predetermined rules and regulations to enter and exit trades. Being a trader, you need to have technical analysis when you set the parameters for your positions.

Auto trading lets you execute many trades in a fraction of a minute. The most crucial benefit of auto trading is that it keeps the emotions away from the trading decisions. It is so because all the trade rules. Hence, you can create your own trading strategies that you can follow and start trading accordingly by using the algorithms.

Automated Trading

How Does Auto Trading Work?

Firstly, you need to select a platform and determine the parameters for your trading strategy. You can use your own trading expertise and knowledge to build the parameters and rules. After that, the customized algorithm will use the set criteria and place trades on your behalf. The factors which are considered here are trade timing. The opening and closing price of the trade and its quantity. The set automated trading strategy will regularly monitor the prices of the financial market. Hence, the trade will be automatically executed if the determined terms and conditions are met. The main objective of automated trading is to execute trades quickly and efficiently. It also lets the traders take advantage of certain market events.

Benefits Of Automated Trading

As discussed earlier, there are many benefits of auto trading. Some of them are discussed below:

Flexible Trading: You can fix the trading strategy as per your schedule, which lets you trade automatically, irrespective of the time.

No Emotional Influence: Most traders tend to make trading decisions as per their gut feeling. This emotional influence can be dangerous when planning trading strategies. But, auto trading is based on the set algorithm, so there is no emotional decision making.

Video Credit – U-Trade Forex

Easy To Analyze Trends: Auto trading makes it easy to identify new opportunities and analyze trends using various indicators.

Real-Time Trading: With the help of auto trading, you can execute numerous real-time trades at the same time and remove manual intervention as well.

What Platforms Are Available For Automated Trading?

You can use many trading platforms for automated trading. Choosing the right trading platform will depend on your trading preferences. There are many forex trading platforms available for you to choose from. Some of them are discussed below:

ProRealTime:

You can automate your trading with assisted tools that can help you build both simple and advanced trading strategies without using any coding. ProRealTime is an advanced but easy to operate system with over 100 indicators. The platform is apt for both new and experienced traders. You can get it for free if you trade on this platform a minimum of four times in a month.

“I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. -Jim Rogers”

MetaTrader4:

You can easily personalize your trading experience by developing your own algorithms. Additionally, EAs can assist you in identifying the opportunities as per your set parameters. EAs will either notify you of an opportunity similar to your parameters or open a position automatically.

APIs

You can also design your own personal trading platform and create advanced trading strategies from scratch. APIs let you code your algorithms from the start. The orders can be filled using advanced IG technology, ensuring you receive the best execution. You are able to see both real-time and historical market prices, evaluate market instruments and manage watchlists.

You may also like

Relevant news

What Is Automated Trading And What Are The Benefits?

by John Doe time to read: 3 min