Automatic Trading

automatic trading

Perfect for the busy, on-the-go trader, taking advantage of Automatic Trading is likely to be very beneficial to the entire trading process. Commonly known as a Binary Options Robot or a mechanical trading system, the concept of automatic trading does exactly what its name would suggest – automatically executes trades and, so long as legitimate and effective software is used, can result in a huge 83% win rate! Taking the pressure off executing trades yourself, switching to automatic trading is a sure-fire way to still make successful and profitable trades without the stress of interpreting the market on your own, especially if you are a new trader without much knowledge yet. If you’re considering switching to automatic trading, or simply just want to learn a bit more about trading automatically, keep reading!

How Does Automatic Trading Work?

Automatic trading systems allow you, the trader, to specify particular rules for trades that, once programmed into the system, will be implemented and executed automatically with no more input from you. This means that you won’t have to waste your time sitting at a computer screen for hours executing your own trades; the system will do all the work for you.

Advantages of Automatic Trading

As it’s essentially your computer that will monitor the market and execute trades accordingly, there are many advantages that come with this:

  • Once you’ve set the parameters and allowed the system to commence, you won’t be able to hesitate or have any doubts about trades. Often, if traders are executing and exiting trades themselves, emotions can get in the way and negatively affect profitable trades being made. However, once your trading terms have been set for your automatic system, you won’t be able to hesitate and doubt your decisions as the software will automatically go ahead without hindrance.
  • Since computers are capable of instant, automatic action, the speed of an automatic trading system is simply second-to-none. These systems are able to generate trades as soon as conditions are met, allowing it to follow the market with speed that you’d be incapable of achieving yourself.
  • A massive challenge of trading without a system or software involved, is that it can be very difficult to establish a rigid trading plan. However, with an automated trading system, you’re guaranteed that your trading requirements will be consistently met and executed, regardless of how you’re feeling about the trade. Consistency is often a key component to achieving the most profitable trades, and automatic trading can give you that.

Disadvantages of Automatic Trading

Whilst automatic trading systems are often extremely reliable and profitable, they’re often wrongly hailed as being ‘fool-proof’. As with anything technology related, malfunctions can happen which could affect the trading process.

  • It is true that automatic trading systems give you the flexibility to move away from your computer and not be there 24/7 whilst trades are taking place. However, it would be risky to leave your computer for an entire day without any monitoring; mechanical failures such as crashes and connectivity issues can happen and, to ensure your trading isn’t compromised, will need immediate attention. So, the notion that you can completely leave your automatic trading system without even looking at it for hours on end isn’t entirely true.
  • Automatic trading isn’t 100% fool-proof and there can still be discrepancies between trading expectations in your plan and what actually happens on the real trading platform. It’s usually a good idea to start with very small automatic trades and slowly begin working your way up once you’ve refined the process in accordance with the live market you’re trading in.

Conclusion

Automatic trading is often very beneficial for the trader for a variety of reasons. However, as with most things related to Binary Options trading, it’s very important to weigh up the pros and cons of automatic trading systems to establish whether it’s really for you.   Some traders like the freedom of an automated system; some prefer to have total control of their trades and wouldn’t feel comfortable with anything automatic. Hopefully this has given you more of an insight into the world of automatic trading and, if you’d like to further progress your knowledge, check out the rest of our site where you’ll find a huge variety of pages dedicated to other forms of trading!