Automated trading is the process when orders to enter the market investing in a selected asset like Gold, Shares or Forex are automatically placed and executed when a set of pre-defines rules/criteria are met.
This is also known as algorithmic trading meaning certain technical conditions which identify the most ideal times to enter the market all have to be met to trigger a trade. Automated trading allows an individual or an investor to take advantage of the opportunities in financial markets whilst also going about their normal day to day business.
One does not have to sit in front of a computer all day trying to do analysis or struggling to identify when to invest in the markets. Orders can be place with a profit making objective, at a speed, accuracy and frequency that is impossible for a human trader. The defined set of rules is based on timing, price, quantity and technical analysis.
You can tailor strategy as an investor to make the most of the opportunities that arise in global financial markets from the price movements of assets like shares, commodities, foreign currency, government bonds and indices. Factors such as economic releases, central bank policies & intervention, company earnings reports, politics and other unexpected events create market movements and conditions which can be exploited(with the right strategy & knoweldge) to invest capital into the vast global markets to generate steady monthly, quartely and annual returns.
Trading strategies can be based on fundamental & technical analysis tools which can scan through all economic data, gauge investor sentiment & monitor price action on all markets. This can help to identify the best times and opportunities to invest in the markets. Automated trading strategies are built using technical analysis tools advanced algorithms. All trades and investments to enter or exit the markets are executed on your behalf at the appropriated times according to your set algorithm based rules. As an individual or investor you do not have to do anything manually other than check your account equity after the trades have been closed.
Trading gives investors a global reach to markets such as forex, commodities, stocks, and indices. Due to modern technology there is access to a wide range of opportunities for investors. Most brokers now offer advanced trading platforms & apps which guarantees that investors can always access global financial markets with ease. Automated trading allows individuals to participate in global financial markets without leaving their day-to-day jobs or making drastic changes to their lifestyle.
Strategies can be designed in a way that gives investors a far greater degree of risk control than when using traditional investment strategies. Risk is solely limited to the amount of capital that you place on a given trade which gives you peace of mind. Capital to be put at risk can always be predefined (recommended maximum is around 2% of your total trading capital).
Automated trading systems can be designed to trade stocks, indices, commodities (Gold, Oil, Silver, Cocoa etc) and foreign currency among many other financial instruments and determine when to enter a position, when to exit and how much money to invest in each trading position taken.
Disclaimer – Futures, CFD, Margined Foreign Exchange trading, Warrants, Options and Spread Betting all carry a high level of risk to your capital. Only speculate with money you can afford to lose. Futures, CFD, Margined Foreign Exchange trading and Spread Betting may not be suitable for all customers, therefore ensure you fully understand the risks involved and seek independent financial advice if necessary.
Copyright © All Rights Reserved