Are you eager to venture into online trading but not confident enough to make the first step? If that is the case, we have good news for you.
These days, you don’t have to be a financial expert to be in a position to profit from trading financial markets online. This popular and highly lucrative business activity is accessible more than ever to ordinary people worldwide willing to invest their money in crypto, Forex, commodities, and other financial assets.
Now, you are wondering how. Well, the secret is in the auto trading software that is designed to perform trading operations instead of you, once you have provided the specific parameters in the system, such as stop loss and take profit, to mention just the most important ones.
What is Automatic Trading?
Automatic trading is a trading method that consists of the trader entrusting the tasks of market analysis and opening or closing positions to a program operating in total or partial autonomy. For example, the trader no longer needs to log in to close a position because the program will automatically do this closing according to the parameters defined by the trader and the market conditions. This trading automation is carried out using the trading platform’s functionalities or a dedicated computer program.
Automatic Trading: How does it work?
Automated trading is implemented using a computer program that analyzes and makes investment decisions on behalf of a trader.
The program places market orders after analyzing information and signals from the financial markets. However, the trader must configure his algorithm / his trading robot / his program before it works automatically.
Concretely, here is how automatic trading works in its simplest form: the trader launches an automated trading program or logs into the trading platform of his broker, chooses the asset to trade, and tells the program or the platform when and under what conditions to close this position (through a setting).
Once these conditions are met, the platform automatically closes the position without the trader needing to act or be connected.
What Types of Automatic Trading Can You Practice?
Automated trading. Here, the automatic trading algorithm or program has full autonomy in making decisions and managing the trader’s investment capital. This autonomy is acquired once the initial configuration has been completed. The program performs analyses, assesses risks and returns, and opens and closes orders on the market to optimize returns or limit losses according to market movements.
Assisted trading. Here, the auto trading program does not have complete control over the trading activity. It analyzes the market and makes its data available to the trader. Assisted trading can also consist of the management, by the algorithm, of positions already opened on the financial market by the trader. The latter is the real decision-maker and his decisions are made on the basis of signals and indicators provided by the algorithm.
If you finally venture into auto trading, the first step would be to choose the right software to opt for the best one for your needs and perform thorough research. Read platforms’ reviews, such as Biticodes review, and then compare the features of all the platforms you are interested in. After that, don’t forget to test the platform performance in demo mode. In that way, you are on an excellent way to finding the trading bot suited for the asset you want to trade and the strategy you want to implement.