Traders often tend to employ the automated trading software. Full discipline, logical investment decisions and sniper-accurate opportunity spotting are the things which are quite difficult for humans to achieve. For this reason, investors try to automate their trading in the best way possible to attain maximum consistency.
Automated systems are available for purchase on the Internet, with hundreds of offers coming for the specialized software developers. Hence, both beginners and advanced traders can just switch on the computer, launch the program and do something else whilst the automated trading software performs all the hard work.
The program which is used for auto trading has many functions. To be more specific, the trading robot studies price charts, examines market activity, determines possible discrepancies in spreads, checks if there are any trends and important news that can influence the market. Based on the inbuilt criteria and settings, the software then makes the buy/sell decision.
Trade Automation In Detail
As we have said above, the automated software works without any negative influence of emotions. Quite often the human predisposition to the illogical or emotional behavior leads to the mistakes made in the course of trading. When automating the trading activity, the investor can concentrate more on the search for trading strategies and opportunities. You do not have to watch over the marker 24/7 analyzing the charts.
Now let’s view auto trading with Forex brokers in details. Great FX brokerages provide different methods for automating the trades. Most of them offer MetaTrader 4 platform where automated trading is presented by the Expert Advisors (EAs). These are special trading robots developed with the help of MQL4 programming language. Brokers usually allow creating EAs in any preferable way.
Similar functionality is supplied by cTrader platform – cAlgo algorithmic trading. cBots work almost in the same manner as EAs, though this automated trading software is more user-friendly. The reason for this is the C# programming language, which is commonly known among the representatives of IT.
Most traders are familiar with trading signals, because they can add more precision to the trading decisions. There is a special automated trade signal software which has pre-settings to spot on buy/sell opportunities. The trade signal generated by the signal system is based on the technical indicators, price alerts and other important tools. The signal is automatically sent to the trading platform and then can be processed quickly by the trading robot.
The Bottom Line
Full automation of the trading activity allows the best implementation of the trading strategy, thus removing any destructive emotion which might prevent you from entering a potentially profitable trade. Automated trading is usually provided by the broker’s trading platform. Additionally, the brokers provide all the necessary tools needed for creating your own trading robot. As for the automated trade signal systems, these are usually offered by the various signal software websites for a fee.
Despite the benefits of the automated trading, it is always important to be aware of the scams among the trading robot developers.