Trading system is a set of simple rules that trading can be used to determine the point of entry or exit positions. Developing and using automated trading systems can help traders achieve consistent results and at the same time limiting risk. In the ideal situation for traders must feel like a robot, and systematically execute commands without any emotion. So what is a contraindication to run the robot on your system? The answer is simple: NO!. So let’s see what you need to create an automated trading system.
Automated trading system created by changing the rules of your trading system code that a computer can understand. The computer then “run” these rules through trading software, which sets out to look for businesses that comply with the regulations. Found market response to these rules, the system places an order on your broker.
But we see in more detail what this software system that supports automated trading.
There are many facts that support the trading program automated trading system. Some operations will automatically generate and settle your broker. Other operations may just find that match their criteria, but to place an order will require the intervention of the trader personally. In addition, the automated trading programs often require you to use a particular broker that supports a particular feature.
So what are the advantages and disadvantages if they use this system?
Advantages:
• An automated trading system of the emotions and even the “dirty” work of Trading, which allows people to focus on improving their strategies and rules for the management of the portfolio.
• Once you have developed a cost effective, no need to do any further work until the system works, or until market conditions do not require any changes.
Disadvantages:
• If the system is not properly made and tested, the huge losses can occur quickly or zero success.
• Sometimes it is not possible to formulate certain rules, so it is very difficult to develop automated trading systems.
Automated trading system (metatrader) can cause a lot of benefits, but obviously there are also downsides. Anyway, if someone has a trading system that automatically manages to make profit every time you open a position he really found the discovery of the century!