Emotions play a big role in the trading decision and this, in turn, affects the trades. Even with a trading plan, novice traders tend to make mistakes with their trades.
The automated trading systems like Qprofit can come to one’s rescue. The robotic trading software lets one key in the criteria for entry, exit and stops loss and the system takes the trades on their behalf once all the rules are met.
The auto trading software takes care of all the risk management rules without any human intervention. This is beneficial because it lets the trader take an unbiased opinion on the trades.
The computer executes and monitors the trades on behalf of the trader. Taking out emotions out of trading is the most important reason why traders prefer to trade with the auto trading software. The system takes the trades when all the criteria in the trade plan are met.
What exactly is an auto trading software?
The automated trading software is also referred to as a mechanical trading system. They are known by other names like algorithmic trading and system trading. All these refer to the same software that allows the traders to trade using the system. The system has an algorithm written in it that lets it take entry, exit and stop loss decisions. These are programmed in the form of an algorithm, and once the criteria are met the computer automatically takes the trade on behalf of the trader.
The entry and exit condition could be simple like a crossover of the moving averages or it could include some complicated strategies that require one to understand the details of the technical analysis. These programs are written by a programmer who is qualified both as a programmer and a trader.
The auto trading software is linked to a broker and all the rules are written in the programming language. These are nothing but the trade plan that the software is designed to follow step by step.
Many technical indicators are used by the auto trading software and these let the software define the entry and the exit points.
Customization is also allowed
Some trading platforms also let the user decide on which technical indicators to use. The trader can make a choice from the available indicators to build a customized algorithm for the software to trade on. The user could set a rule that a long trade is executed when say the 30 moving average crosses the 50 moving average on a 30-minute chart. The user can also choose to input the order type like whether they want the software to execute a market or a limit order.Read More