Emotions are your biggest adversary while trading (apart from unreliable brokers, unpredictable markets, and slow internet). Nine out of ten trading tips will tell you to shun feelings when making trading decisions. But as those in the game know, it’s easier said than done. That’s why we need all the help we can get to make trading an objective, informed, emotionless venture. And how do we achieve that? By letting technology do the work for you.
Automated or algorithm or system trading is using programs and internet technology to execute a trading plan. With the help of automated or mechanical trading systems, traders can set up rules and conditions for trade entry, exits, order types, etc. And once the programmed parameters are met the system will place the trade without the manual intervention of traders.
Automated trading allows you to set up as many trades as you want with strategies based on your skill-set. You can go for any simple or complex trading system with the added benefit of stop-losses, take profits, and trailing stops. As algorithm trading functions based on pre-determined criteria, you don’t have to keep track of the market 24*7 to place a trade. The program will monitor the market continuously for you and open a trading position when the preset conditions are met. So you can take full advantage of 24 hours open forex markets and place orders day or night without messing up your schedule. This automatic and precise order execution also gives you an edge over the market that changes by the second. Since all the rules of the game are already decided, there is no scope for emotions and feelings interfering with your trading decisions. And with customized algorithms placing orders with precision and consistency, chances of human error are also significantly reduced.
While there is a lot of good that can do with automated trading, it has its own share of disadvantages too. One of the main drawbacks of depending completely on a program or software is that technology can be faulty. There is always a chance of system failure, connectivity issues, or mechanical issues. So you can’t entirely dismiss the need of keeping track of trades even when you’re relying on a trading system. And like any other trading strategy or idea, profit is never a guarantee. So keep the pros and cons in mind while going for automated trading. Although several platforms are offering automated trading, MetaTrader4 with its advanced technical indicators, diverse order types, and Expert Advisor feature is one of the main contenders. You can find more about it at https://trustcapitaltc.com/web-mobile-platform
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