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:

 

Minimizes Emotions

-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.

 

Preserves Discipline

Trades rules are established and trade execution is performed automatically.

 

Achieves Consistency

- 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.

 

Diversifies Trading

- 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.