Length : 1.30 Minutes
Advantages of Automated Trading
There is a long list of advantages to having a computer monitor the markets for trading opportunities and execute the trades, including:
-Trades are executed automatically based on the defined strategy.
- Eliminates over-trading habits.
- Follow the defined strategy once the trade rules have been met with no hesitation.
Ability to Backtest in Strategy Tester
-Ability to back-test the strategy much easier and faster in strategy tester.
- Up to 99% accurate back-test result as there is no interpretation and it is based on absolute given rules.
- Ability to back-test historical data with no limit before risking money in live trading.
- Efficiency, speed, and accuracy of the back-test allow traders to evaluate and fine-tune their strategy.
- Generate comprehensive back-test result which Allows traders to evaluate all aspects of their strategy such as winning and losing ratios and drawdowns.
- Trades rules are established and trade execution is performed automatically.
- Trade once the defined trade criteria are met without missing any trade opportunities.
Improved Order Entry Speed
- Improve order entry speed since computers respond immediately to changing market conditions.
- Immediate exit and entry altogether with stop-loss and take-profit orders for each trades once trade criteria are met.
- Allows traders to trade on multiple accounts at one time.
- Allows traders to trade various strategies at one time.
- Allows immediate hedging strategies to minimize losses
Other advantages are:
- Reduce human errors in trading.
- Trades 24/5 all market session unless it is shut down.
- Reduce levels of commitment by the traders as it trades itself.
- Gives the freedom to the trader to do other activities and trade at the same time.