What is Automated Trading?
Automated trading, also called robotic trading or algorithmic trading, occurs on computers, where trade entries and exits occur automatically at a moment’s notice according to specific established rules. Automated trading has become the primary means of trading due to its ease of use and reduced human error, making up about 75% of all market trades.
What are the Benefits of Automated Trading?
Automated trading has many advantages over traditional manual trading, including:
- No emotional attachment. Automated trading is governed by scientific algorithms, not human emotions, so traders can stick to their plan without hesitation or second-guessing. It is helpful to traders who are prone to overtrade, or doubt themselves. It also helps traders stay the course instead of getting nervous after losses and changing their plan, missing out on trades that may have been winners.
- Backtesting made easy. Automated trading makes it easy to backtest, or use relevant historical data to determine the viability of a trade before executing it. Backtesting allows you to test a trading strategy based on previous results, instead of flying blind.
- Trading Diversity. Automated systems give users the opportunity to implement multiple trading strategies using different currency pairs at the same time, allowing for more diversity in their trades.
- Faster trades. In the world of Forex trading, the difference between a gain and a loss can be measured in seconds. Automated systems trade instantly, so you don’t need to worry about missing out on a good opportunity by getting to it moments too late.
- Convenience. Interested in Forex trading but don’t have the time? Automated systems trade on your behalf 24 hours a day, 5 days a week, so you can trade while you work and sleep, stress-free. This allows people to enter the world of Forex trading who don’t have the time to devote enough attention to it during the workweek.
Robovest FX is an automated Forex trading platform that instantly executes all trades uncovered by our advanced RVFX Analytics, monitored closely by our registered CTA. Join now or contact us today to get started.