shekhar
Member
Automated trading, also called 'Algorithmic Trading' or 'System Trading,' uses electronic platforms to enter trading orders with an algorithm.
(An algorithm is a set of rules followed to make a trade).
The main benefit of auto trading is that it does not make decisions based on emotions. It can also help you take more trades, as you're not limited by your ability to sit at the computer and enter orders manually. However, it is essential to note that there are risks associated with automated trading.
Pros and Cons of Automated Trading
Automated trading has become increasingly popular in recent years as technology has advanced. However, there are pros and cons to using automated trading software, so it is essential to understand how it works before opting to go with it and whether it suits you.
PROS
(An algorithm is a set of rules followed to make a trade).
The main benefit of auto trading is that it does not make decisions based on emotions. It can also help you take more trades, as you're not limited by your ability to sit at the computer and enter orders manually. However, it is essential to note that there are risks associated with automated trading.
Pros and Cons of Automated Trading
Automated trading has become increasingly popular in recent years as technology has advanced. However, there are pros and cons to using automated trading software, so it is essential to understand how it works before opting to go with it and whether it suits you.
PROS
- Automated trading can take the emotion out of trading decisions, which can help to remove human error.
- The software can make decisions based on pre-programmed rules to act faster than a human trader.
- Automated systems can monitor multiple markets and initiate trades at the best possible times.
- If there is a problem with the software or the internet connection, trades may not be executed correctly.
- Automated systems may not be able to adjust to changing market conditions as quickly as a human trader.
