WittenWhisler606

Five top reasons to consider automated trading

greg adams - There are five reasons why I love automated trading or algorithmic system type trading. It will help me stay with my trading plans and frankly I think of myself less as a trader and more as a portfolio manager. Below are a few explanations why:

1. Remove the Emotion - Some say trading is 90 percent psychology and 10 percent your plan, I don’t really agree with that but let’s say it is true, then, in the event you automate your automated program perhaps you have removed 90 percent of the problems? Traders hesitate to tug the trigger, or get impatient and begin too soon. Regardless of how much you imagine you can train your brain to be more disciplined, you'll always be human. Why don't you make use of the computer for it’s strengths, as a robot, and let it execute your software system for you personally.

2. Backtest Within minutes - It will take hours or days to undergo numerous years of charts looking for your entry and exit points and marking the result in the spreadsheet. Using a automated automated program it is possible to manage a test within minutes and see the outcome during the last few years, including percent success, variety of stopouts back to back, average pip or tick profit per trade. Then you can certainly get one of these variation of the idea like a larger profit target, and again start to see the effect, within seconds. - trading coach

3. Step out of the computer - have fun with the markets when you place the kids to rest, have dinner, and require a telephone call. Even though you may not have the time for you to trade, you could have your trading plans running via automated systems.

4. Multiple trading plans running simultaneously - How many markets and charts can you watch at the same time? Some traders joke the way to fix a negative trading patch is to purchase more monitors and set more charts on them which means that your office looks more essential. When you automate your trading plans you may enjoy positions being taken on several pairs at the same time for independent reasons. In fast paced markets its best to be able to do 2 things simultaneously.

5. Place Trades As you Sleep - 8 hours uninterrupted sleep in the pitch black room with similar bedtime every night is vital for sharp thinking throughout the day, yet few make it a priority. Ever notice the better times to trade could possibly be between 10pm and 6am? The idea that you’d let a pc trade your plan as you sleep could be unsettling for a few but here’s how I notice. Firstly Irrrve never risk more than 1 percent of my trading account on any 1 trade, and secondly Time passes for moves available in the market that traverses 8 hours, so if anything would have been to ever go wrong it would just be 1 percent of your problem so when I obtained in the morning my open position would likely be inside my profit and prevent area, plus my profit preventing are put at time of entry and remain using the trade till it closes out. Having traded because i sleep for a long time now I truly have fun here as you can’t think about it whenever you sleep, which means you let the maths and statistics do their work. - greg adams