Autotrading is becoming an interesting topic, especially in the Forex market. Metatrader is an example of a trading platform where you can code programs called Expert Advisors to Trade for you.
There are several advantages to using a trading software in the Forex market. Because the markets are open 24 hours a day it is impossible to always be watching the market. Automated forex software can be used to trade a system completely, or to assist in your discrentionary trading style manually.
Benefits of Automated Forex Software Systems:
Trading Software forces you to trade based on concrete rules. This eliminates the emotional and psychological aspects of trading, which I have always thought is a good thing. The mind is very complicated and it is very easy to see things that aren't really there or to find reasons why you think you should enter a trade or take profit or cut your losses. Many times you will get caught up in the moment, especially when volatility is high. You see the price move quickly and want to jump in and chase without any clear entry signals. Or you think price is way to high, it can't go any higher, but then it does. Trading software eliminates all of these problems.
Drawbacks of Automated Forex Software Systems:
Some traders believe that a program can't trade as well as they can. This may be true if you trade fundamentally. Other drawbacks include issues related to your computer and the internet connection. You need to make sure your computer is connected to a UPS system in case the power goes out. Ideally you should also have fiber optics for your internet connection because it won't go down in a power outage. Also make sure your computer is built to stay on for long periods of time. Servers tend to be best for this.
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