Automatic trading on the stock exchange

  • 14/12/2023
  • 1

Automated trading opens up opportunities to make money on the stock exchange, ahead of the human factor. In addition, now among large market participants more than 70% of all trading operations are carried out by robots. What automated Forex trading programs are available to private investors?


Features of automatic trading

Manual trading on the stock exchange or forex is available to all private investors. It will bring systematic profit if transactions are concluded not chaotically, but on the basis of one verified income strategy.

Some of these strategies, which do not involve the factor of human intuition when making decisions, can be automated by creating an algorithm that will independently analyze the market, read the trading signal, and open and close Forex trades.

A program for automatic trading on the stock exchange is called a robot or advisor. Their algorithms are built, as a rule, on the basis of mathematical indicators, technical analysis strategies, as well as candlestick patterns, which the program can easily read from the chart.

Robots constantly monitor the market to search for conditions specified in the robot’s algorithm. When these conditions are met, a trade is opened. You can also set parameters for stop loss and take profit, conditions for increasing the volume of positions, and criteria for risk management.
Where can I get a trading robot?

To earn money without manual trading, you need a program for automatic earnings on Forex – a robot or advisor. Where can I get it?

Automate your own strategy. If the trading system is simple and amenable to algorithmization, it can be turned into a robot. To do this, you need to either study programming in MQL yourself, or assign such a task to specialists. A program for automatic trading on Forex will be an excellent solution for those who have worked out the strategy well, are convinced of its profitability, and know how to set the parameters correctly. In addition, this will eliminate emotions and the influence of the human factor.
Download for free or buy a ready-made robot. In this case, scalpers or robots that trade on news are very good advisors. They allow you to overcome the limitation in the speed of placing orders. Multi-currency work, using several strategies to simultaneously analyze a number of currency pairs, would also be a good solution.

Automated trading: benefits and precautions?

Now anyone can trade Forex with the help of robots. But these ways of earning money, along with the benefits, also have pitfalls.

The automatic trading program saves time and removes the limitations of the human factor – the psychological component and limits in speed and reaction. Experienced traders who have automated their strategy continue to monitor its operation, tweak and improve the robot if necessary.

Beginners are often tempted to avoid the need for training and try to replace the ability to analyze the market with a robot. This often works against them, as advisors have their own pitfalls.

Often the algorithms of robots, especially high-yield ones, incorporate Martingale averaging methods or use order grids. This significantly increases the risks and, if the initial lot is set incorrectly or the deposit is small, it can lead to losses.

To prevent this from happening, it is important to understand the algorithm of the program that is used for automatic trading. Before you start working, you need to test the robot on a demo account or cent accounts to ensure profitability and understand the maximum drawdown size.