Fact Sheet on the automated trading
What is automated trading ?
As its name implies, this type of trading is opposed to the discretionary, that is to say manual. An automaton or robot trading deals to place orders for purchase or sale in your place, according to the established strategy. In sum, once the program is launched, it only remains to wait.
Most robots available on the Internet operate on the Metatrader platform. This is one of the best known, its features related to automated trading are contributed.
On this platform , robots are called Expert Advisor (EA). It offers back-testing function, that is to say, tests on historical data. The advantage over the real-time test is obvious: the time saved .However, be careful, the results can be misleading.
What is automated trading ?
As its name implies, this type of trading is opposed to the discretionary, that is to say manual. An automaton or robot trading deals to place orders for purchase or sale in your place, according to the established strategy. In sum, once the program is launched, it only remains to wait.
Most robots available on the Internet operate on the Metatrader platform. This is one of the best known, its features related to automated trading are contributed.
On this platform , robots are called Expert Advisor (EA). It offers back-testing function, that is to say, tests on historical data. The advantage over the real-time test is obvious: the time saved .However, be careful, the results can be misleading.
It is important to use reliable data. For forex trade is not centralized, it is not possible to recover the "official" data, as well as actions as an example. The course finds it easy to use data from the broker to backtest its automated strategy.
What are the three main benefits of automated trading?
- Automatic trading overcomes the shortcomings of humans and their particular vulnerability to emotions. An automated trading respects without qualms trading strategy while a trader may be tempted to change according to events.
- An automatic trading allows a 24h/24 trading, which is not the case with a human, which can allow you to enjoy the fact that Forex is always open.
- An automated trading is fully autonomous once it has been configured.
What are the three main drawbacks of automated trading?
- The establishment of an automated trading system can be particularly difficult, at least at first, because it involves learning a programming language and then outsourcing this activity to a professional, which has a financial cost.
- Your trading strategy should be perfectly logical because a computer does not respond to logic.
- Trading activity is more focused on research and development than trading, which implies a certain distance from the market that does not suit all the needs.
How to choose an automatic trading?
Four major criteria must be taken into consideration before choosing the automatic trading including:
