An automated trading system is a program that allows adjustment according to traders’ preferences and can then carry out buy/sell orders on behalf of the trader. The preset preferences are derived using a certain trading strategy of choice hinged on technical analysis. Automated trading systems have gained traction in the past due to their aptness to execute a trade devoid of emotion due to their automation. They are prevalent amongst novice traders who have minimal knowledge of how trading works. They have also been embraced by expert traders who choose to avoid trading manually.
An automated trading system utilizes software which is connected to exchanges via an API and the preset rules should be written in a particular platform’s registered language. Trading platforms allow traders to choose strategies from a list of frequently obtainable technical indicators. These technical indicators are used to configure a set of rules that can then automatically execute a trade. Some traders, however, choose to personalize their indicators and trading strategies. This process is cumbersome but if well executed, it’s likely to yield high trading profits.
Some of the advantages that an automated system offers include:
This is a method that traders use to assess how a trading strategy would have done using historical data. It helps you evaluate risks and profitability of a strategy before using existing capital to trade.
2. It helps minimize interference of trading by emotions.
Human beings are vulnerable to emotions and emotions can make a trader make uninformed trading decisions. A trader may hesitate to make a trade that might be high yielding or be too stubborn to see that the trade will likely lead to losses if they don’t exit due to their emotions. Automated trading systems come in handy since they execute trades instantly depending on the user’s preset rules.
3. It is swift when making an entry or exit from a trade.
Automated systems respond immediately to the prevailing market conditions and they are able to create orders instantly. An automated system will effectively reach a profit target as soon as the trade criteria preset is attained. It will also speedily exit the trade before the trade hits a loss level.
4. Diversification of trade.
An automated system allows the trader to trade using various strategies across various exchanges simultaneously. This helps to extend risk across multiple instruments while at the same time generating a hedge.
5. They safeguard trading discipline.
Automated systems follow preset rules to carry out trades. When the markets become volatile, automated systems make sure that trading discipline is preserved because trades are carried out automatically.
Executium is the embodiment of an automated trading system. It allows traders to diversify their trade by providing a platform for them to trade across various crypto exchanges. It also eliminates emotion in trading decisions by use of their automated trading system. Executium has perfected the craft of saving time by executing quick and systematized trades on behalf of a user.