5 Reasons To Use Automated Systems
As computing power grows and use of technical and mathematical indicators is contually rising in popularity, programs that automatically trade the markets become a reality.
In this article I will present the advantages of using such 'robots', and show you how you can save time and money using automatic systems.
Anyone who has ever tried trading knows that trading is 20% analysis and 80% psychological. One must be disciplined, strict and highly confident in order to succeed in
trading, but yet our human nature continues to block us sometimes. After a streak of winning trades the trader may become over-confident and betray his money
management. After many losing trades a trader can become misrable and fearful - thus missing a good trade. Computers have no such problems - their inability to experience
profit and loss they way human do make them the best traders in the world. A computer will follow strictly the systems rules no matter the situation, thus insuring
its proper execution.
Forums on the subject of FOREX and Trading are filled with many trading systems, most of them manual. But how can one seperate between the loser system and the
holy grails? Investigating them one by one will take years of trading - and still will not produce objective results due to the psychological nature of trading. In order to get
objective and strong evidence one must trade his system for at least couple of months. This is where automatic systems come in handy.
Automatic systems are easy to backtest, optimize and research. Once coded it will produce the same results over and over again, allowing the user to backtest it
thoroughly, and to reach solid conclusion regarding its profitability and risk factor.
Perhaps the most important advantage of using automatic systems - you don't have to trade it yourself. You have found a system that works, you trade it and make a living.
That's nice, but what if you had an automated system that does the trading for you while you enjoy your free time?
Computers can perform billions of operations in one second, and exceed the human brain capabilities enormously. We, as system developers, can use this power into
creating better systems. While a human can look and trade a maximum of 2-3 pairs at a time, computers are practically unlimited in the commodities and goods it can
trade, thus creating unlimited profit oppurtunities. Moreover, computers can use complex algorithms to determine buy and sell signals while a human could not do at a
reasonable time.
After your strategy is automated, you can perform thorough research of it and inspect all its parts and indicators easily and objectively. You can determine the contribution
of each indicator you are using, and to optimize your system to the maximum. You can determine the best hours to trade, the pairs which create the most profits,
and to reach conclusions that empower you trading system. These are options rarely done by manual traders.
To automate your system or create a custom indicator, click here.
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