BobbePhillips8

Five top reasons to consider automated trading

greg adams - You will find five explanations why I love automated trading or algorithmic system type trading. It will help me follow my trading plans and frankly I believe of myself less as a trader and more like a portfolio manager. Here are some reasons why:

1. Eliminate the Emotion - Some say trading is 90 percent psychology and 10 percent your plan, I don’t really accept that but let’s say it is true, then, should you automate your trading plan have you removed 90 percent of the problems? Traders hesitate to drag the trigger, or get impatient and jump in prematurily .. Regardless of how much you believe you are able to train your mind being more disciplined, you will always be human. Why not make use of the computer for it’s strengths, as being a robot, and let it execute your automated program for you personally.

2. Backtest Within minutes - Normally it takes hours or days to endure numerous years of charts searching for your entry and exit points and marking the outcome in a spreadsheet. With a automated automated program it is possible to operate a test within minutes and see the result during the last several years, including percent success, quantity of stopouts consecutively, average pip or tick profit per trade. You'll be able to try a variation of one's idea for instance a larger profit target, and again see the effect, within seconds. - trading coach

3. Step from the computer - have fun playing the markets when you put the kids to sleep, have dinner, and require a phone call. Even though you may don't have the time for you to trade, you can have your trading plans running via automated systems.

4. Multiple trading plans running simultaneously - The amount of markets and charts are you able to watch simultaneously? Some traders joke the method to fix a negative trading patch is to purchase more monitors and place more charts on them which means that your office looks more important. When you automate your trading plans you can enjoy positions being taken on a few pairs at the same time for independent reasons. In busy markets its helpful to have the ability to do 2 things simultaneously.

5. Place Trades As you Sleep - 8 hours uninterrupted sleep in the pitch black room with similar bedtime nightly is important for sharp thinking throughout the day, yet few make it a priority. Ever see the better times to trade could be between 10pm and 6am? The idea that you’d let a pc trade your plan while you sleep can be unsettling for some but here’s how I see it. Firstly I never risk more than 1 percent of my trading account on any 1 trade, and secondly I am going for moves in the market that traverses 8 hours, so if anything would have been to ever go wrong it would only be 1 percent of the problem when I got in the morning my open position would probably still be inside my profit preventing area, plus my profit and prevent they fit sometimes of entry and remain with the trade till it closes out. Having traded while I sleep for a long time now I really have fun here as you can’t consider it once you sleep, so you let the maths and statistics do their work. - greg adams