Auto Trading Software – What, How, Where
Who wouldn't be excited by the prospect of a computer system that automatically enters and exits trades and potentially makes profits with little input from the user?
But before you start using automated trading software there are some key points that need to be considered.
What exactly is auto trading software? How does this work? Is a system that guarantees profits really possible?
What is auto trading software?
Robo trading software in India is software that allows traders to set rules for entering and exiting trades in the financial markets and manage money. Once those rules are programmed, your computer can automatically trade according to those rules.
Trade entry and exit rules can be based on simple circumstances, such as moving average (MA) crossovers, or they can be based on more complex strategies. These demand a comprehensive understanding of the programming language that is specific to the user's trading platform.
These days, free automated trading software India can be used to trade a variety of markets, such as stocks and forex, and is accessible to anyone who has a computer and an Internet connection.
Expert Advisor vs Auto Trading India
Automated trading systems are generally divided into two categories – expert advisors and auto trading software India.
Both are created by highly skilled and experienced professionals, who write algorithms to analyze market trends and perform the trading process.
The difference between the two lies in their business placement. Expert Advisors do not automatically place market orders on behalf of the trader. Instead they provide trading signals to the user. Users then decide whether to open or close a position based on the information. On the other hand, robo trading software in India deals with the entire process automatically.
Forex Auto Trading Software In India
The world's best automated trading software are computer programs designed to analyze market activity and price charts. The software helps identify key trading signals, such as spread anomalies, price volatility patterns, news, that may impact transactions. Along with this, it also takes care of fluctuations in currencies. This is done while performing all trading activities, so as to minimize the amount of loss.
?? For example, a trader may establish that a short trade should be opened below the 25-day moving average (MA) or the 100-day MA (or vice versa) on the 5-minute chart of a particular market. Traders can also choose the order type, trading time
Many traders wish to program their own trading strategies and customized indicators, or, if they are not proficient in the programming language of their platform, seek the help of a programmer. This approach requires more effort than simply using the trading platform's wizard, however, it also offers a greater amount of flexibility, and traders can achieve a more profitable end product.
Once the rules are set, the computer can monitor the markets to find buy or sell opportunities based on the trading strategy, and then auto trade. Once a trade is entered – based on the specified rules – protective stop losses, trailing stop orders, and take profits will also be entered. Furthermore, in fast-moving markets this immediate order entry can mean the difference between a small loss and a catastrophic loss.
Can Auto Trading India and Expert Advisors lose money?
Automated trading India can be a valuable tool, although most automated trading software in India trade within a certain range. They make a few pips amount in this range, which is usually the slowest time in the Forex market, and they set fairly low profit targets, and may not use stop losses.
In this way, automated systems can make a profit in a limited period of time, although it may be a small profit.
When an unexpected and strong market move occurs, it wipes out the small profits they have made. Some robots that are promoted as best auto trading software in India can make profits in a positive trend, however they can lose money in a choppy volatile market, so finding a great trend is an essential have work.
Do Automated Trading India with Admirals
You will be glad to know that Admirals offers a free demo trading account for everyone which allows them to trade completely risk free. Instead of jumping straight into the live markets and risking your capital, you can avoid risk altogether, and practice until you are ready for live trading. To take control of your trading experience, click the picture below to open your free demo account today!
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Advantages of automated trading
Forex trading is considered one of the prime markets to trade, and the best robo trading software in India can help by executing all Forex transactions instantly.
So what are the benefits of automated trading system? Let's see.....
1. It's accessible
Automated trading software for Indian markets is useful for beginners, veterans and professionals as it helps everyone in making trading decisions. The software is available in different price ranges, and offers different tiers. Free automated trading software India is also available so users can become familiar with the program before using it on their live trading account.
2. It is not based on emotions
One of the biggest attractions of Auto trading software India is that it can eliminate any negative or destructive emotions associated with trading, as trades are automatically placed as soon as certain criteria are met.
By keeping emotions aside, traders usually have an easier time following their primary plan. As trade orders are automatically executed when the trade rules are met, traders will not have a chance to hesitate or question the trade. Additionally, automated forex trading software can prevent overtrading (i.e. buying and selling at every perceived opportunity).
3. It allows for backtesting
The next advantage is the ability to backtest. Traders can use backtesting rules and test them on historical data before risking money in live trading sessions. This backtesting allows traders to evaluate and fine-tune a trading idea.
4. Maintains discipline
Automated trading in India maintains discipline, as trades are executed automatically after trading rules are set. Discipline is often lost due to emotional factors, such as fear of incurring a loss, or the desire to gain more or less profit from a trade.
5. Improves order entry speed
Financial markets can move quickly, therefore, the speed with which a position is entered or exited can have a major impact on the success of a trade. Auto trading software India can respond instantly, and orders can be placed as soon as predetermined criteria are met (complete with stop loss and take profit).
6. Helps in diversifying trading
The final benefit is that Automated trading in India allows you to diversify your trading. An automated trading platform allows the user to trade with multiple accounts simultaneously, or with different strategies. In turn, this has the ability to spread the risk over different instruments, while generating a hedge against losing positions.
The downside of automated trading systems
Despite its many advantages, automated trading is not without its drawbacks. So let's see some of these:
1. They need to be monitored
While it sounds great to have your computer on all day, automated trading systems require monitoring. This may include mechanical failures, such as connectivity problems, computer crashes or power outages, and system-related problems.It is possible to experience inconsistencies in automated trading systems, which may result in missing orders, incorrect orders or even duplicate orders. If the system is monitored, these events can be determined and resolved faster.
2. They can be highly customized
As we mentioned earlier in the article, no trading strategy can guarantee placing successful trades every time. However, some traders may assume that their strategy will always be successful and may therefore sometimes "over-optimize" their strategy when backtesting.
The facts contained in this article should not be construed as investment advice, investment recommendations, offers or recommendations for any transactions in financial instruments. Please note that this type of trading analysis is not a reliable indicator of any current or future performance, as circumstances may change over time. Before making any investment decision, you should seek advice from independent financial advisors to understand the risks associated with the subject matter.