Which one is ideal for you among the varying automated trading software?

Posted by Steve Martin on May 23rd, 2019

For new traders that intend to automate trades using automated trading software, it is always quite interesting to hear their mindset. Particularly, it is interesting to know what kind of system they plan to trade – not all specific details concerning their strategy, but from a truly high level. It’s a fact that there are already hundreds possibly thousands of lucrative systems out there already. But, how can you get one you can utilize to actually make money? There are lots of varying options if you're taking the step to enter automated trading. This article offers an excellent blueprint of how to begin considering automated trading.

1. Automating a manual system that you already trade

The most sensible step for lots of traders is automating a manual system that they already trade. This is an excellent place for the majority of new auto traders to begin. It enables taking baby steps into auto trading in an environment you are already familiar with – manual trading system. By doing all the prep work to get his manual system automated, the trader gets a great reference frame to compare his auto results as he already possesses extensive experience trading the system manually. Once he has gotten the system converted to full automation, it offers an excellent foundation to begin to delve into other strategies. This is how some of the best automated trading software was developed. This approach’s other advantage is that when you begin modeling and back-testing your strategy, you will probably learn lots more about your manual trading and your outcomes will become a lot more consistent.

2. Trade a strategy that seeks infrequent setups

There are lots of lucrative manual systems out there that trade quite infrequently. Though it’s possible to stare at your PC screen through the whole day waiting for setups to materialize, it is a lot more efficient to automate this kind of system. So, while it isn’t impossible to trade these kinds of systems manually, auto trading can provide a clear edge since your software does not require any rest or to eat lunch. Automating this kind of trading system is normally a massive time saver and saves you a lot as regards wasted efforts.

3. Trade a strategy that is impossible to trade manually

This is probably the largest class of strategies that’s the biggest reason to begin auto trading. There is an entire universe of strategies out there which are just impossible to manually trade, but which you could unlock via the utilization of auto software. For instance, let us say you desire to enter fifty orders within the very first minute of your trading day all with particular entry as well as exit criteria. You need not explain why this happens to be impossible for any human to trade. With auto software, trading this kind of strategy now becomes not just possible, but quite easy and convenient.

These are the three strategies from which you can consider which will be most ideal for you when it comes to using automated trading software. If you can automate any of the three, then you will certainly come off with truly lucrative trades.