Modern technology and new approaches to trading are making it much easier for speculators in the trading market. At the same time, online earning is becoming easier, but in turn, requires the user to study each new trading approach in detail.
The essence of the trading mode is trading without the participation of a speculator, an automated process of opening and closing a trade based on a specific algorithm. If you are interested in working with cryptocurrency in an easy way, you may try to trade BTC using an automated platform — https://stoic.ai/.
What is auto trading and what tasks can a robot perform
Automated trading is a method of trading that implies optimization of the process and its full or partial automation. Ideally, the tool should analyze the market situation, make predictions, and open/close orders independently. In addition, the robot should set the best parameters for operations, and select the settings for the terminal. In general, the program takes all the classic duties of any speculator in the foreign exchange market. But be aware that only an automated expert advisor will perform the range of such functions, semi-automated options are not suitable.
Using auto trading you can solve the following problems:
- Carrying out a technical analysis. The trader does not need to make mathematical calculations when launching an advisor. They are necessary for forecasting price movements.
- Timely notifications. You can set alerts for price changes, events in the market, etc.
- Reporting, depending on the robot’s functionality, it is possible to generate or send reports. This option is ideal for those who want to keep a trading diary and want to know about the trades, status, and performance.
- Trading the news is difficult, but real for internet trading. The expert advisor analyses the news feed and then notifies the speculator or automatically reacts to the situation.
The complexity of the program depends on the tasks programmed into it. Accordingly, the more reliable, and efficient a trading robot is, the higher its cost. But the high price tag of a robot is not always an indicator of high results and profitability.
The benefits of automation in trading
Each trading approach has weaknesses and strengths. Let us start with the obvious advantages of automated trading:
- Saving humanity’s most valuable resource — time. Once a trader has set up a robot, you will need minimum time in front of your computer.
- Saving on mental resources and concentration. Just run a few robots and you can save yourself the trouble of analyzing the graph repeatedly.
- Discipline and absence of emotional factors. This point is especially an advantage for those traders who cannot control their own emotions and worries.
- Greater coverage of market niches. It is all about the earnings. Robots can be used when a speculator is physically unable to make deals.
- Testing of the robot. If you want, every user can run the program on a deposit with minimum stakes by himself, before running the software to its maximum capacity.
- Trade according to the plan. There is a high probability of not getting even the minimum profit, if you ignore the conditions of even the most effective strategy.
Beginners should be extremely careful when choosing an automated trading robot. You will still need experience and knowledge to set up the software correctly.