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How not to miscalculate: the pros and cons of Forex trading robots
Trading with the help of Forex advisors looks simple and profitable, but it is fraught with not only advantages, but also disadvantages. Read more about the pros and cons of forex robots.
Recently, many traders use mechanical trading systems in their trading, and those who do not use would like to know more about them. Let’s see what it is and why these systems are needed? What good can they give the trader, and what disadvantages do they have?
Trading system – a clearly defined set of rules for trade, i.e. to open and close positions. The term “trading strategy” is also used. If you have a clear plan, under what conditions to enter and exit a transaction, even if only on paper or in your head, you have a trading system. Move on.
Mechanical Trading System (MTS) – this is a program (or device, as the term “mechanical” implies) that automatically submits and withdraws applications according to the logic laid down in advance in accordance with the trading system (trading strategy). It is also possible that the program can perform additional functions at the discretion of the author of the system – control of submitted applications, monitoring of transactions, analysis of trade, with the provision of charts and reports, etc. I think instead of the word “mechanical” it would be more appropriate to say “automatic” trading system, but due to established traditions, market participants use this very term.
There is still the concept of “trading adviser” or “trading expert”. Trading Advisor – this is, let’s say, a semiautomatic device that collects data, analyzes it, makes calculations and reports the results to a person who already makes decisions based on the data received. IN Metatrader, which is used for Forex trading, trading advisers and experts call programs that can not only give signals, but, if desired, the trader to carry out automatic trading.
Recently, the term “trading robot” has been used to refer to a mechanical trading system.
So, we know what a trading robot is, now we will find out why it is needed and what advantages it can provide.
Pros of trading robots
Speed. A trading robot can track dozens, hundreds of stock quotes, make complex calculations instantly, make decisions and immediately place orders. A person will never be able to analyze so much information so quickly. Traders who use large volumes of complex calculations in their trading system and entrusted trading to the robot gain an advantage over colleagues who trade in the old fashioned way. Traders who do not use robots are forced to reduce the number of traded instruments, increase the used time intervals (timeframes) and abandon promising, but complex trading systems.
Accuracy. The trading robot does not make mistakes (unless of course the error crept into the program code when it was created), all input and output data can be calculated with an accuracy of several decimal places, if necessary. By submitting an application, the robot does not accidentally dial an extra zero and does not put a comma in the wrong place. Manual traders can sometimes make mistakes both in calculations and when placing orders. A well-designed trading terminal can protect against some of these errors, but the chance of an error still remains.
Trading robot is not subject to emotions. A lot of traders, especially beginners, having undergone an emotional impulse, make transactions that contradict the logic of the trading system and in most cases such transactions turn out to be unprofitable. A trading robot always strictly adheres to its logic. He does not listen to the “guru” in the smoking room, who knows exactly where the price will go, he is not afraid of three consecutive unprofitable transactions, he does not have a bad mood.
The trading robot does not get tired, it is ready to work 24 hours a day. You can go about your business, work, sleep, relax, and your robot will trade. If you trade manually, you will not be able to spend 100% of the time at the computer, even if the trading session on the exchange is only 8 hours. Separating from the computer, the trader may miss an important signal to enter or exit, and this can cause losses.
Scalability. If you want to add functionality to your trading system, you only need to add the code. For example, you can receive beautiful reports and graphs at any time, you can set up alerts from the robot via SMS, and you can complicate the trading strategy ad infinitum. By trading manually, you have to spend more of your time if you want to expand the possibilities of your trading, or even hire additional assistants, or refuse to expand your activity.
As you can see, trading robots give traders great advantages, why aren’t everyone still using them in their trading? Do mechanical trading systems really have no minuses? Yes, and very significant.
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Cons of trading robots
The complexity of manufacturing a robot (writing a program). You can develop an excellent trading strategy, but not be able to program it. Even if you are a programmer, you will need to learn a new language, and if you do not understand programming, then you will have to be even more difficult. You can order the writing of a robot, but you cannot be sure that the programmer will accurately describe the logic of your strategy in the program and will not make mistakes, and in the future you may have difficulty modifying the code or expanding the functionality if necessary. There is still the option of buying a finished robot, but, in my opinion, this is the worst option – firstly, you should know exactly how your robot works, and most of the purchased systems are “black boxes”, and secondly, I personally It is suspicious why the authors sell “machines for making money,” and do not make money on them themselves.
Trading robot can use only technical analysis. You do not teach to read his news and company reports. The robot, in accordance with the signal, can open a position at a time when the news reported about the beginning of the depreciation.
Trading robot cannot make decisions in unusual situations. He only fulfills the logic laid down in him, and in case of problems, he will not be able to change anything. Of course, in the program you can put the robot’s reaction to some situations, but it is impossible to foresee everything. For example, if the connection to the Internet is lost, the robot will not be able to continue trading, or at least close an open position. A manual trader would then call the broker and close the position, or restore the Internet. The computer may freeze, the program may close with an error, the broker may not accept the application or accept, but with a long delay. A trading robot will not be able to respond to all events and this can lead to unplanned losses.
The lack of emotions, one of the advantages of a trading robot, is also a minus. A robot can, without any embarrassment, release all your capital in one day. Consider this when creating a robot, consider this possibility and do not allow it. For example, let the robot trade only part of your capital, or make it so that when a threshold is reached, the robot notifies you and (or) stops trading.
A trading robot does not have intuition and does not use it in its trading. Some trading strategies are based on intuition or use an intuitive approach (although I personally would not call it a strategy). For example, many scalpers make decisions based on their instincts. They just look at the quotes and make a decision. It is impossible to program such a strategy.
Mechanical trading systems provide traders with new trading opportunities, giving them advantages over manual traders. In stock markets, forex or derivatives market, trading stocks, futures or currencies – a trading robot is always ready to execute the program laid down in it. But, using robots to automate trading, traders should not forget that robots are not perfect, they are not machines for making money, this is just another useful tool for a trader and you need to use it wisely.
What are the Best Automated Investments in 2020?
Work, family, and business commitments have the tendency of holding you back from trying a hand in investment. And even in the off-chance that you do, they still find a way of limiting your productivity. But what happens when you cannot have a great time fighting off productivity.
To help solve these unavailability and inconsistency issues, most investment service providers have started embracing automated investing. An additional feature that either helps you create a personalized investment portfolio, manage an existing one or both.
But how does automated investing work?
It starts with identifying an investment company that supports automatic investments. And it doesn’t have to be just robo investors, though they too are a great option, it can be virtually any investor drawn from such fields as real estate, shares and stock markets and innovative finance like peer-to-peer lending sites. The automated investments craze has swept throughout the different sectors of the investment world. To help you get started, we take a look at some of the ways in which you can earn decent passive incomes through automated investing.
You then have to select the auto investment option that either helps you create the portfolio or just takes over management after you decide on your preferred investment options
On this Page:
Who can benefit from these auto investments?
The working class looking to build a side income
When you are working two or three jobs every day or juggling between work and school, you have zero time to learn about different investment opportunities. But you still need to invest if you are to create a supplemental income stream. In such a case, you will need an automated investment opportunity that takes care of your investments right from portfolio creation to its management.
Mums and Dads:
Achieving a level of financial freedom is just as important as running a happy family. It’s hard to always be available and still make time for your investments. But what if you didn’t have to choose between either? Automated investments make it possible to make time for your family while the systems make money on your behalf.
Individuals seeking to master investments in a specific industry:
There are two ways of learning about a particular subject. You can either sit in class or behind online tutorials, or you can start learning by watching a trading tool in action. Most auto invest tools don’t just execute buy and sell orders blindly, they leave a trail of investment data that you can use to master learn from the system’s mistakes and improve on.
If you are a career investor, such as a money market trader, diversification plays a key role in minimizing risks and expanding your take home. And since it is practically impossible to effectively monitor and manage handful portfolios effectively, you will need an auto-investment tool to help manage some.
What are the pros and cons of automated investments?
100% passive income A great way of learning about an investment opportunity Presents you a supplemental income stream The management and transaction fees associated with most is extremely low Most don’t require you to have prior experience in the invested niche They will take care of both your investment portfolio creation and its management Give you access to award-winning and proprietary investment algorithms
The portfolio achieved by this isn’t as personalized as the auto investor may want you to believe They aren’t immune to market volatilities Some auto-invest tools are expensive to acquire and complicated to interact with
Criteria used to identify the most potent auto investment markets:
Ease of use Acquisition costs (if any) Minimum investment and operating balances required The annual average rate of return Access to education and investment training Regulation and reputation
Best performing automated investment services in the country
1. P2P lending sites with auto-investment settings – (8-12% return p.a)
Peer to peer lending sites is a branch of innovative finance and investments and one of the best performing investments. Here, investment companies promise returns in excess of 10% per annum while limiting the level of risk your investment is exposed to through extensive diversification and securitizing loans. Ideally, P2P lenders provide personal and business loans to individuals and small and medium enterprises. They break long requests into small fractions of about $25 referred to as Notes and allow several investors to invest a fraction of their funds with a single borrower, effectively distributing the impact of loss in case of defaults.
SMEs are however required to attach business or director’s assets as collateral. Some of the most promising P2P lenders whose platforms allow for automated investments include LendingClub, Upstart, and Prosper with an average annual rate of returns stand at 12%, 10%, and 8.90% respectively. The auto-investing tool guides you through the portfolio creation and through screening borrowers and using the settings to advance loans automatically.
Highly rewarding Minimal investment risks Relatively liquid – secondary loan markets
Risk of defaulting on loans still high Not FDIC insured
2. Real estate crowdfunding investments – (8-11% pa)
There isn’t much difference between crowdfunding sites for real state and peer to peer lending. While the peer-to-peer lending sites is more inclined to personal and business loans. Crowdfunding sites are more concerned with the lucrative real estate industry investments. They create platforms that offer a link between smallholder real estate companies and both accredited and non-accredited investors.
These sites are run by industry professionals who conduct thr groundwork like looking for high income earning properties and agree on investments terms like repayment interests and time limit. They then break the huge investment into smaller affordable portions that anyone can contribute to. Some of the crowdfunding real estates that have an automatic investment feature include Peer Street and PropertyCrowd whose annualized average income stands at 9% and 11% respectively.
Above average annual returns Offer secure loans minimizing risk Thoroughly researched investment options You don’t have to be an accredited investor to invest with most of these sites.
Deposits aren’t FDIC insured
3. Robo advisors – 3-6% return depending on portfolio
Robo Advisors are probably the most popular and most effective form of fully automated investments. Unlike most peer-to-peer related automated investment tools, robo advisors take care of the entire process right from helping you create a personalized investment portfolio to managing it. Investing in a robo advisor takes no more than a few minutes and starts with answering such questions as your risk tolerance levels, the amount you want to invest, and how long you want to invest it.
The robo advisor then uses these criteria to come up with a diversified pool of investment options that match your investment goals. Some of the most popular robo advisors include M1 Finance, famed for its considerably low management fees of up to 0.25% annually. And if you don’t know where to start, they have a large pool of present investment portfolios that you can customize.
Full automation guarantees 100% passive income Preset investment portfolios make it beginner friendly Most present you with valuable trading tools
Investment portfolios are picked from a pool of preset features and therefore not fully personalized Not immune to the shares and stock market volatilities
4. Certificate of deposit (CD) rates – 3% interest pa
Certificate of Deposit (CD) are best for long term savings. They are considered high yield investments and offer fixed rate on deposits for a fixed term. These tend to offer higher interest rates than your average savings account with a commercial bank. The funds deposited herein however can only be withdrawn upon maturity of the account with premature withdrawals often subjected to high punitive penalties in the form of loss of interest rates. Some of the CD rates provides with the most elaborate automated investment systems include Ally Invest, the online bank, and Goldman Sach’s Marcus.
Relatively high annual return rates, up to 3% for Marcus Relatively low minimum initial deposit Long term deposits encourage savings
Highly rigid and doesn’t support withdrawals
5. Digital investment apps that automatically build portfolios for you
The internet is awash with different pure online investment options that you can invest in. Most are however inclined to investing in the fast-moving money markets like stocks, shares, and equities. Leading the pack here is Stash investment app that lets you build an investment portfolio with just $5. It has a pool of thousand stocks and shares that you can use to create a highly customized investment portfolio.
And if you aren’t sure with regards to where to invest or don’t have enough time to vet all these investment options, they have an auto invest tool dubbed Coach that will walk you through the investment process, guide you through the investment portfolio creation phase and also manage the portfolio on your behalf. And management fees here start from 0.25%. Its competitors include and Acorns.
Affordable minimum investment amounts starting from $5 Stash auto invest features handle all your savings and investments affordably Supports custodial accounts for children under eighteen years
Investing apps are also subject to the highly volatile shares and bonds markets
6. Forex Trading EAs and AutoTrading
Forex trading is probably one of the most lucrative investments currently available. But its volatilities and risk exposure on your capital investments are up to the roof. Ideally, forex trading is part of thr contracts for difference (CFD) investments and this means that by engaging in forex trade you are trading the price actions and not actual currency purchases. Your broker promises to pay you the contract difference if the price moves according to your prediction or you will pay them the price difference if it moves against your expectations.
The sheer number of trades being executed per second as well as the numerous factors that impact currency prices right from negative news, comments from world leaders bring about the highest price fluctuations. Most brokers and industry operatives have come up with numerous highly effective trading robots that help automate the entire process. These auto-invest options for forex trading are ranked by such advanced features as a stop loss and take profit levels and price movement alerts. These are also easily integrated into the MT4 trading system with some of the pioneering automated forex brokers including Forex.Com.
Gives you a competitive edge over the competition and the average trader Helps you maximize forex trading returns Most can trade 24/7 across the different forex trading markets You can follow their trading strategies using them to perfect yours Recent advancements in trading automation like copy trading make it more beginner friendly
Effective forex trading robots are expensive to acquire The number of scams out there makes it almost impossible to differentiate between a good deal and a scammer.
7. Share and Commodity Investments with trading robots
Shares, stocks, bonds, equities, and commodities are by far the oldest form of investments. Commodity trading, for instance, dates back to ancient civilizations and so does futures contracts, especially the ones relating to agricultural produce. It is also a highly volatile market whose product and services price movements are influenced by not just the forces of demand and supply but also by such external factors as the performance of global economies, political stabilities, and world leader opinions and comments. The extensive research about the industry has helped industry players come up with highly successful trading robots that go a long way in fully automating the process. Most are however run by some of the most accomplished online stock brokers like Charles Schwab’s Options Express and TD Ameritrade’s ThinkorSwim.
They are relatively inexpensive to acquire and their management fees affordable They are beginner friendly Help you create and profitably manage your investments
You may need help mastering how some of these auto-trading stock and commodity systems like ThinkorSwim work
8. Cryptocurrency trading bots
The first thing that comes to mind for most individuals every time someone mentions cryptocurrency trading or investing is their unending risks. They can only recount unending hacks associated with the trade, highly volatile market conditions where crypto coins lose values in hours, or minutes, and unregulated markets with no filters to screen out the bad and prevent them from tainting the rest of the industry.
You have to dig deep enough to get any inspirational information about the numerous success stories of people who got in during Initial Coin Offerings (ICOs) and achieved 1,000%+ in returns on investments. Trading and investing in cryptocurrencies is no different from forex trading, safe for its higher risks and even more volatile trading environment. Several auto investment tools have however cropped up in the recent past that support hands-free investments. Top on this list is trading software like Bitcoin Loophole Cryptohopper, and cryptoblizz whose key features include price alerts, expert and independent market analysis as well as automated reinvestment of earned funds.
They are relatively straightforward and don’t require expert help to operate Will help create an investment portfolio and manage it independently Supports auto re-investments of the principal amounts and interests earned
Different plans and subscription packages lock most investors out of key benefits They both are relatively expensive to acquire
What should you avoid when choosing different auto investment options?
The internet is rife with cons and scammers hoping to profit from your naivety in a particular niche. These individuals have therefore come up with bold and highly exaggerated assertions about the profitability of their ‘proprietary’ auto trading software. Before committing to any auto-investment tool, research extensively about its effectiveness by consulting reputable review sites like the Better Business Bureau (BBB). And if it sounds too good to be true, it probably is and the more reason to think it through.
Don’t pay to test out an automated system. You will be risking more than its acquisition costs when you trust it with your capital investment. This is especially true for relatively new auto trading systems that are neither approved nor regulated by the relevant agencies or have no history of effectiveness. You will be wise not to take the developers word for it. And if they have total confidence in the auto-investor they will be more than willing to offer free trial periods.
Auto-invest tools of ill-repute
The better business bureau and Trust Pilot maintain large databases of verified customer reviews about different products, brands, individuals and services. Check out these reviews and customer trust scores before committing to the preferred auto investor tool.
Pulling off the plug too quickly
When the financial crisis rocked the United States money markets in 2007/8, most stocks and shares shed more than 50% their value. Today, however, virtually every brand has recovered its original market share and stock value. We understand that staring at your investments shed value day after day is not easy. We discourage you from canceling every investment that cedes ground to negative news or commentaries from industry leaders without thorough research on its probability of rebound.
Investments that you have little to no knowledge about
Robo advisors and numerous other auto trading tools will hold your hand right from the investment portfolio creation stage. This implies that you don’t necessarily need any prior experience in this market. But we believe that if you are to create a perfect investment portfolio, you need a basic understanding of your preferred industry.
Automated investment systems have played a key role in advancing the finance and investment industry. The fact that you can create a portfolio and manage it on your behalf, independently, in virtually any profitable investment field has pulled in every investment enthusiast. It has also drawn in scammers and cons who seek to profit from its misuse in equal measure. You, therefore, have to be extremely careful about the automated systems you commit to. Research extensively about an auto-invest tool’s effectiveness before purchasing or subscribing to its use or trusting it with your hard earned cash.
What are automated investments?
Automated investments refer to a hands-free approach to trading and investments where all your interactions with the market are handled by a specially designed software/algorithm. Most of these algorithms will take total control of the investment process right from the creation to the management of a portfolio.
What types of investment supports automatic investments?
Auto-invest tool shave been developed for virtually conceivable investment niche. Whether you are interested in forex, cryptocurrency, shares, stocks, and bonds, there will always be an automated system specially designed for the market.
How do I vet the effectiveness of an automated investment?
With the number of scam auto-investment tool peddlers on the rise, it becomes necessary to vet a tool extensively before trusting it to handle your cash. Start by checking the credulity of its developers and Distribution Company. More importantly, check its customer trust score from trusted reviews sites. If possible start by testing it in a demo or risk-controlled investment environment.
When do I need an auto investment system?
You will need an effective auto-investment system if you are too busy to handle the investments productively, don’t have much experience in the field and want to earn as you learn and also if you have a highly diversified portfolio that you can’t seem to manage effectively.
What is the minimum investment amount when using an automated investment tool?
If you were to start building a portfolio with Stash, the investment app, you would only need $5 while Plus500 requires a minimum $100. Some will even require that you start with a $1,000+ in initial deposit or minimum operating balance.
How can I set up an automatic investment online?
You first need to identify your area of interest. For instance, do you prefer crypto, forex or shares, and equities investments? You then have to find the most effective and auto-invest tool suited for the market. Most of these adopt a set and forget approach and therefore take no more than a few minutes to install and launch your investments.
How do auto-invest software providers make money?
When you embark on a search for auto trading software, you will realize you can either buy or embrace a monthly subscription. The investment algorithm providers, therefore, make money through the sale of these products or in the form of subscription income. Some will, however, advance it for free provided you maintain a specific a minimum operating balance or complete a fixed number of trades for a particular period.
How does an automated investment tool avoid exposing my capital to unnecessary risks?
Any effective automated investor software will be backed up by a series of risk management tools. These range from an extensive investment portfolio diversification to such practical risk management tools like the use of stop loss and take profit features. Others, like the robo advisors, will resort to asset rebalancing and tax loss harvesting. It is imperative that you first confirm this with your preferred auto-invest software provider before registering.
Opinion about automatic trading
Automatic trading is attracting more and more traders but is it a good alternative to manual trading? Since the objective of any trader is to earn money, the only question to ask is which of the two methods offers the best trading performance. To answer this question, it is important to understand the advantages and disadvantages of automatic trading.
Can the benefits of automatic trading improve your performance?
The main advantage of automatic trading is the automation of your position entries and exits. This allows you to spend much less time in front of the screen and therefore have more free time. It is therefore an advantage of convenience that is given here.
The other great advantage of automatic trading is that your trading strategy works 24 hours a day. All buy/sell signals are used. You no longer miss any trading opportunities. If your trading strategy is a long-term winner, automatic trading enables you to generate more performance. Effectively, if, for example, 2/3 of your trades are winners with your strategy, the more trades you open, the more you win.
To achieve the same performance with manual trading, you either need to spend more time trading or increase the size of your positions. But in the latter case, the increase in leverage induces a greater risk. From this point of view, automatic trading therefore wins the trading performance match hands down.
Does automatic trading really eliminate emotions?
Emotions are one of the main factors that causes losses for novice traders. There are emotions related to greed (appetite for profits) and euphoria (feeling stronger than the market after a series of winning trades). There are also emotions related to losses such as frustration, anger, depression, fear of losing and panic.
With manual trading, you are confronted with all of its emotions. This is therefore a factor that can significantly affect your trading performance. However, all emotions related to losses are often the result of the absence of risk management in your trading strategy. If you apply strict money management to all your trades, you are no longer subject to these negative emotions. Regarding emotions related to winnings, no trader is immune.
With automatic trading, you are only confronted with emotions related to winnings. Effectively, if you start making money, you may be tempted to increase the size of your positions to earn more and more, as is the case with manual trading. Concerning the emotions related to losses, you do not suffer them since you are not in front of your screen. However, you must apply the risk management rules to your trades or risk heavy losses.
In terms of emotions, automatic trading is still an advantage, even if we can qualify it. Effectively, in both cases you may or may not apply risk management and want to earn more and more by taking more risk.
What are the limits of automatic trading?
For a trader who has no experience in manual trading, automatic trading seems to be more efficient. Effectively, it is only by trading that you realize the numerous limitations of automatic trading:
– Stop loss management: With automatic trading, placing of a stop loss is automatic. However, depending on the configuration of the price chart, the positioning of a stop loss needs to be adapted to either limit losses or follow the movement. A stop loss has a significant impact on trading performance. Novice traders tend only to focus on winning trades but performance is strongly impacted by the ability to minimize losses. This is often what makes the difference between a winning and losing trader. In my opinion, stop loss management is more important than the trading strategy itself. Automatic trading does not allow for any flexibility in this respect. Movement of a stop loss must follow logical rules, namely, stop loss at x pips, movement after x time if the trade is positive, etc.
Technical Analysis: Automatic trading does not allow you to base your position entries and exits on chart patterns, trend lines or even simple horizontal resistance and support lines. With automatic trading, your strategy must be oriented towards technical indicators. If this is not the case, it is often impossible to transcribe your analysis into an algorithm. Technical analysis does not follow logical rules. Nothing can replace your eye for detecting chart patterns and the different plots on a price chart.
– Strategy development: The big mistake for a lot of automatic trading users is believing that once the strategy is developed, there is nothing more to do. In this case, you will be ruined. Whatever your type of trading, you need to develop your strategy. It’s easier to see this with manual trading because you can see changes in market conditions in real time. If you use a trading algorithm, you will clearly not be monitoring your account every day. So you can accumulate losses faster before you change anything.
Moreover, few people touch their automatic trading strategies due to a lack of technical skills or the influence of the word ‘automatic’, which implies that there is nothing more to do once a strategy has been found. Most traders look for a miracle algorithm and then hope to make a fortune without having to do anything. Whether you do manual or automatic trading, you need to spend time developing and monitoring your trading strategy. There is a reason that banks and hedge funds pay mathematicians a fortune to keep their trading algorithms performing well. It’s the same for a trader. It must adapt to market conditions.
– Experience: Only by practising can you gain experience. This applies to all areas. With automatic trading, it is the algorithm that does everything for you. Unlike humans, they do not learn from their mistakes. Errors are corrected only if the developer changes the code. In addition, if you do automatic trading, you will spend your time on sites that promote this type of trading. You stay in a bubble that only has coders. You don’t go to sites with traders who trade manually and whose experience is valuable to help you improve your trading quickly and become more efficient.
Good habits to adopt with automatic trading
Whether you do automatic or manual trading, developing your own trading strategy is the best way to optimize your performance. Develop a strategy that adapts to your investor profile and especially one that you understand. If you develop your strategy (which is essential), you fully understand the logic of the algorithm, the position entries and exits.
If you have the technical skills, you can code your strategy yourself. If this is not the case, have it developed by an expert. There are a lot of sites including ProRealCode which offers to develop your algorithm for free if you share it with the community.
In any case, never buy a trading algorithm on the net. That will surely be a scam. If someone sells you an algorithm, it’s because it doesn’t work otherwise they wouldn’t need to sell it. It’s as simple as that. Trading robot vendors always show you positive backtests but you should know that this is a customer trap. With any strategy, I can show you a positive backtest. All you have to do is choose the right period for the backtest. Any strategy (or almost any strategy) is a winner at some point. Develop or have developed your own trading strategy. You can also test the free strategies on the net.
My opinion on automatic trading
Automatic trading has many advantages, there is no doubt about it. It largely eliminates emotions and maximizes the performance of your strategy through 24-hour trading. This can be very profitable and high frequency trading is the most perfect example of this.
However, at the level of an individual who does not have the technical resources of hedge funds and banks, automatic trading can be a trap. It is essential to change your strategy regularly and you must not fall into the money trap, which you think is easy. Work is just as important as manual trading to develop your trading strategy.
I have been a manual trading enthusiast for many years. I have tried automatic trading several times and I have never been able to code all the elements of my trading strategy. In many cases, the management of stop losses and position exits does not follow a rule precise enough to be coded. Coding my strategy would therefore mean making it much less effective.
And what do you think of automatic trading?
WHAT IS AUTO ROBOT TRADING?
Nowadays, a huge number of people are moving towards trading in the stock market. It is because of the Stock Market’s recent growth and popularity. The Stock Market is the fastest growing industry to earn fast money. Most of the Traders depends on the market news, Advisories, TV News, and on their friend’s advice. In the recent study sticks, we have found that only 2% of the traders are getting success and most others are still struggling for success. Traders are continuously losing money because of the lack of proper knowledge about the Stock market. They are getting robbed either by the tips providing firms or by the broking firm who charge a large sum of money in the form of brokerage and other charges.
In this blog, we are going to tell you about some powerful software, which has changed the history of trading and it is gradually being popular with traders very fast. You all know that nowadays technology has put its feet in every field, and in every field, technology is taking us towards success very fast. Technology has made trading very easy and profitable for traders.
But before proceeding further, we need to know the trading behaviors of the traders. There are two ways to trade in the stock market.
Auto robot trading
In Manual Trading, traders do trading manually by using their own skills. Most of the traders watch financial News channels such as CNBC, Zee Business, etc. They rely upon the expert advice of the Market experts and trade according to their guidance. While others depend on the broker’s free advice and those who can spend money on the expert’s advice, they hire the technical advisories. But, the unfortunate thing about the advisors is, there are 98% fake advisories available in India who give fake tips and rob traders by getting huge subscription fees and the inaccurate signals. Some advanced traders start using charts and get ideas about the best entry and exit levels.
Somehow, if the trader gets proper guidance about the stock market they move to the Technical Analysis. Now the question arises that what is Technical Analysis?
“Technical Analysis is a method to analyze and forecast the price of a particular stock or commodity, by examining its price and previous price movement.”
So, this is the way all traders start their trading and do struggle to get smart profits from the stock market. Now Let’s move further and understand the second and the most interesting part of the trading Called “Auto Robot Trading”.
Auto Robot Trading
Auto robot trading’s meaning is the same as it sounds. Yeah! it means to trade automatically without any manual intervention. In manual trading most of the times we lose money because of the manual and emotional interventions. But, if we start trading with the robotic system, our trades will be accurate, profitable, fast and error-free.
In another way,
Automatic Trading is simply emotionless trading which makes your trades automatically without manual intervention and without emotional crisis.
Auto robot trading is also known as Algo trading. Auto Robot trading is a technique in which we buy and sell shares through bridge software. The software takes the buy and the sell entry at the right time without any delay. For example, if we are trading manually so in order to trade, we need to open the trading platform or we need to call the broker’s number. It caused delayed entry and may cause the slippage on the price we have decided. The robot trading increases the profitability because of the Automatic process and once we trade automatically, our emotions do not come between us trading.
Many times, while trading manually, Traders know that the position of their shares or commodity in the market is leading to Loss, even when the trader does not end that position due to their emotions and the loss increases. If our market is poor and we know that our trade will not be in the position of profit again, then we should get out quickly. But, due to the emotions, we cannot do this and we lose more in that condition. And this is why many traders take the decision not to trade. After this, it will not only cause loss of money, but the trader also breaks its confidence and the trader joins the group of critics of trading people in SHARE MARKET.
In India, most people are doing manual trading because they do not know about Auto Trading. They have good knowledge but they are still not successful, because they are one step away from success, which they should use to get good profit by using Robotic system.
Auto Robot Trading System is a group of some fast computer software, where the order is automatically generated and automatically submits to the trading terminal. Robotic Trading offers many advantages. Such as good accuracy, focusing on several scripts at one go, good return, time-saving and real-time trading.
The combination of Auto Trading Strategy and Robot is that Auto trading allows traders to create rules for entry and exit and according to the computer rules automatic trading completes. The strategy may also be based on simple conditions such as Moving Average or it may be based on some complicated rules. Not only this, but Traders can also add their strategy to the robot.
Every businessman should first seek out the important success factors of his business to achieve success because the success factor only determines how much success the business will get. Similarly, while trading, New Technology is the trading success of Factor, which we know as Auto Robot Trading. If Trader joins himself with the Robot Trading System, he will be able to do all this at a large level, because while doing Robot Trading, they will not have to spend all the time in trading, rather he will have to add some minutes to his requirement robot. , Then the robot will automatically complete each process automatically.
People misunderstand that using New Technology is difficult. But it is not so, to understand technology, it only takes a few minutes and then it works to take us faster towards success. In fact, understanding and using the Robot is very easy. Traders have to start Robot Trading only once and within a few days, they will be masters of this software.
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