How autotrading helps newcomers to master exchange trading
Autotrading implies the use of special programs or terminals for trading operations. Such systems automate most of the processes, greatly facilitating the activity of the trader. In this case, the program takes over the analysis of the situation, opening, and closing transactions.
There are two variants of autotrading systems: special terminals and digital assistants for automated trading. Both of them allow users to adjust the functionality for opening deals.
The most popular are Expert Advisors. They represent a special script that is installed on the trader’s terminal. The choice of such systems is huge and includes both paid and free options. You need to buy terminals separately; in addition, you pay extra for the signal to open the deal.
Autotrading makes it possible to entrust the program with all important operations. The program advisor analyzes the situation on the market and on the basis of the received information makes a decision on order opening. If all the conditions set by the system are fulfilled, then the deal is closed or the stop loss is activated. There are advanced options when assistants can set certain parameters without human intervention.Another advantage of automated programs is that their use does not require special knowledge. They are excellent for a beginner who still poorly understands the principles of technical or fundamental analysis. It is enough to have basic knowledge about the mechanisms of interaction at the exchange, and the rest can be entrusted to the program.
Despite the advantages, autotrading has its disadvantages. The first of them is the additional expenses. You must be prepared for the fact that a system with a large number of functions will cost approximately $500. In addition, you must understand that both people and machines are not immune to mistakes. Even the most expensive and advanced program can fail and misjudge trends in the market. Also, programs can have a number of conditions, which will not suit a trader, for example, a certain amount of deposit or limited currency pairs.
Note that many brokerage companies are skeptical of autotrading and prohibit the use of such programs on their servers. Violation of this condition can cost money or be fraught with contract termination.
Autotrading is a great solution, but you should not expect a miracle from the program. It is better to combine the use of programs with your own analysis and control of transactions. Such symbiosis allows the trader to understand better the tendencies in the exchange, and at the same time, at necessary moments to have a safety net from the program and its automated analysis.
In addition, you should understand that all of the major market players, in addition to mathematics, rely on their intuition. And in many cases, it was the latter that told them the right decision.