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What is automated trading?


Wouldn’t it be great to get automated trading robots for you and earn guaranteed profits? Many dream of finding the perfect computerized trading system for automated trading that guarantees profits and requires little input from the trader himself. Although many automated trading systems are available, there are some burning questions that need to be answered.

But what exactly is an automated trading program? What is the Automated Forex Trading System? Is it possible to find a profitable system?

 Are automated trading systems safe? This article answers these questions and more!

Explanation of automated trading

Automated trading or automated trading systems allow traders to set specific rules for each of the trade entries and exits, which can be executed automatically by a computer. The rules for entering and exiting trades can be based on simple conditions such as: a Moving Average Crossover (MA), or they can be based on complex strategies that require a thorough understanding of the user’s trading platform programming language.

It is usually observed that people involved in trading don’t really have much knowledge about the trading process. Not surprisingly, this is one of the reasons automated trading systems are so popular. For those looking to start trading, all that is required is a computer with an internet connection – you don’t even need to make a large investment to get started. Automated trading tools allow traders, especially beginners, to set their trading limits in advance, which can help keep their trading on track. On the other hand, manual trading can increase the risk of becoming emotionally invested in trades and may not make the best trading decisions for it.

An example of an automated forex trading system is Expert Advisors. Expert Advisors are created by qualified and experienced professionals who write algorithms to analyze market trends and conduct the trading process on behalf of traders. These professionals are selected based on their level of knowledge and proficiency and the benefit of using an EA is that a client trader can avoid panic or anxiety in their trading.

How does the automated trading program work?

Automated trading software usually requires a software application connected to a direct access broker and any special rules must be written in the language of that platform. For example, the most popular trading platforms: MetaTrader 4 and MetaTrader 5 use MQL programming language, while NinjaTrader platform uses NinjaScript programming language.

Some automated trading platforms include “wizards” for creating trading strategies that allow traders to choose from a list of widely available technical indicators to create a set of rules that can be traded automatically. For example, you can be assured that a long trade will be entered as soon as the 50-day moving average rises above the 200-day moving average on the 5-minute chart of a particular trading instrument.

You can also enter the type of order (e.g. market or limit orders) and exactly when the trade will be triggered (e.g. when the next bar opens or when the bar closes), or you can enter the Use trading platform default inputs. However, many traders choose to program their own trading strategies and custom indicators, or work closely with a programmer to develop their own automated trading software. Although this often requires more effort compared to using a trading platform processor, it allows for a much greater degree of flexibility and the results can be more rewarding.

Once the rules are set, the automated trading software can monitor the markets to identify buy or sell opportunities according to the set trading strategy and then perform the automated trading. Once the trade is entered – according to the pre-set rules – protective stop-loss orders, trailing stop-losses and take-profit targets are also entered. Additionally, in fast-moving markets, this can mean entering a spot order without distinguishing between a small loss and a catastrophic loss should the trade go against the trader.

Demo trading with Admirals

Maybe the bestway to practice automated trading is a demo trading account. Admirals offers traders the opportunity to download a free demo account to trade in a virtual trading environment without risking their capital, but still using real market data! It is the ultimate trading experience for traders who want to practice their strategies or simply learn how to trade without risking capital unnecessarily. Sign up for your free trial account today by clicking the banner below!

Demo trading account

Automated Forex Trading

Forex traders and investors can convert entry and exit rules and money management into automated forex trading systems that allow computers to execute and monitor trades. One of the biggest attractions of automation in a trading strategy is that any negative or destructive feelings related to trading can be eliminated as trades are automatically placed once certain criteria are met. In other words, your chosen automated trading software or forex robot executes all trades, opening and closing trades while you rest and relax.

Is the Automated Forex Trading Program Profitable?

Automated forex trading software does not guarantee 100% profits, but it does ensure that you benefit most from market movements, whatever they may be. The automated trading program works very clearly and coherently. Expert Advisors are basically a piece of software consisting of a few modules that check charts and numbers that are transmitted between the trader and the forex broker.

It is very easy to work with these programs, they are specially designed and used, so you do not need any previous training to handle them. All you have to do is download and install the program, and then adjust the settings on your computer. The automated forex trading system will start working and generate results as soon as possible.

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