Want To Start Automated Trading? Follow 5 Simple Rulesby Ashik Topasiafx Editor at TopAsiaFX
Automated trading or robot trading is now a phenomenon these days. It is helping traders and investors to generate more and more profits (obviously it contains some certain risks).
It is the outcome of modern and more advanced technology. As a result, traders are getting attracted towards it day by day. Robot trading has changed the way of online trading.
Therefore, it is absolutely normal that traders will very much like to operate with it. But before that, there are 5 simple rules to follow and which are-
Consistency is the key
Every strategy can work like miracles as long as someone stays sincerely to it. Manual trading, on the other hand, tends to shift from one approach to another. Only at a time when most trades are profitable, the strategy is maintained.
What must be understood is that withdrawals are an inevitable part of trading. Because automated trading is based on previously stored rules and strategies, consistency is guaranteed regardless of short-term results.
Fast order payment
Most traders lose significant opportunities because they spend too much time analyzing the market. This is called excessive analysis and may eventually destroy your trading career.
When you are busy analyzing manually, the market continues to move forward, resulting in late entries.
Therefore, in this case, the automated trading platform functions as a savior. It keeps your trade at lightning speed until the time the market conditions work well. This minimizes the chance that you lose your signal and saves you time and energy.
Although there are many benefits of automated trading, there are some disadvantages too. Often traders tend to focus on curve-fitting and lead to algorithms that are very good in theory but cannot be properly translated indirect trading.
For example, many traders refine their plans with almost 100% profitable trades that never lead to withdrawals.
However, when applied to the market directly, it can fail at certain times. Therefore, it is very important to stick with low-value trading until you are finished with all the wrinkles.
Not allowed by some brokers
Before investing in automated trading, you should take the time to research brokers that support this form of trading.
This is said because there are several brokers who are not very supportive of this technology and will only allow manual trading.
The note here is that new brokers are registered almost every day. This way, you don't have to worry about running out of options. There are also brokers that offer free VPS, which is very important for automated trading.
So, as a solution, now you have one of the best-automated trading platform called FIX API. Which is offered by SGT Markets.
Monitoring is important
It is estimated that after you complete the account settings, you can sit back while the computer will take care of the trade. However, one should note that this is a big misunderstanding and not do this.
A trader must always be active and alert. You should always pay attention to connectivity issues, computer damage, and unexpected market anomalies.
At the same time, there may be many other situations that cause loss or duplication. So you need to know to refrain from relying entirely on technology.
To conclude, always remember that it is only a technology and it has some certain risks so trade on your own risk and finally follow these 5 steps and I think it'll help you to build a successful automated trading career.
Created on Sep 4th 2019 04:57. Viewed 222 times.