You want to invest in trading but do not have much time to stay on hand and monitor market fluctuations. Try the automated trading method, all the problems you encounter such as emotional factors, lack of clarity in investment decisions due to exhaustion will be solved. Let’s explore the most correct way to use this method right below
What Is an Automated Trading System?
Automated trading systems are considered one of the useful tools that help us eliminate emotional factors when trading. It works based on market data such as prices and technical indicators, pre-programmed strategies and it will automatically execute buy and sell orders on the market.
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Advantages of Automated Systems
Save time: No need to sit in front of the screen to constantly monitor the market. The system will automatically execute transactions according to the rules you have set.
Eliminate emotions: Helps you avoid emotional trading decisions, based on fear or greed.
Increase efficiency: The system can execute multiple transactions at the same time and faster than manual trading, helping you capture more opportunities.
In-depth analysis: You can use many technical indicators and analysis tools to build complex trading strategies.
Highly customizable: You can customize the system to suit your trading style and goals.
Drawbacks of Automated Systems
No system is perfect. Even if you have programmed a very good strategy, the market can still move in ways you did not anticipate.
You will have to pay for the trading platform, market data, and possibly advanced analysis tools.
Building and managing an effective automated trading system requires knowledge of financial markets, technical analysis, and programming (to some extent).
Trading systems can fail, resulting in incorrect or delayed trade execution.
Which platforms Allow you for automated trading?
Automated trading is a convenient strategy. However, to get the most out of it, you need to choose the right trading platform that suits your style. Here are the 3 most trusted platforms
1. ProRealTime
This is a trading platform suitable for both beginners and experienced traders, providing support tools for you to build strategies without knowing programming, helping to test the effectiveness of the strategy before applying it to real trading with more than 100 technical indicators to analyze the market,
However, compared to other platforms, ProRealTime may not provide the highest level of customization for those who want to create complex algorithms.
2. MetaTrader 4 (MT4)
Mt4 is a platform that provides many technical analysis features and trading tools, allowing you to create trading algorithms (Expert Advisor – EA) as you wish. With a large user community, you can learn from experience and share EAs, indicators.
However, this platform requires you to spend time to get familiar with the interface as well as have knowledge of the MQL4 programming language or want to customize your strategy.
3. API
API allows you to build any trading system you want using your own programming language, direct access to the market, ensuring the fastest order execution speed.
However, API is best designed for professional traders who want to build a completely customized trading system because it requires programming knowledge and building a trading system from scratch takes a lot of time and effort.
Effective Apply The Automated Trading
Here are the most basic steps when participating in automated trading, you can refer to:
Step 1: Open a trading account
Go to the website of the trading platform you choose (ProRealTime, MetaTrader4 or API) and fill in the registration form.
The platform will ask you to provide some information to verify your identity, such as an ID card, passport or driver’s license.
After the account is verified, you need to deposit money into the account to start trading. You can use many different payment methods.
Step 2: Choose a platform and trading tools
Each platform has its own advantages and disadvantages. Learn carefully about each platform to choose the one that best suits your needs and experience.
- ProRealTime: If you are a beginner or want a simple, easy-to-use interface, ProRealTime is a great choice. Simply activate ProRealTime on your trading account and start using it right away.
- MetaTrader 4 (MT4): If you want more options to customize your trading strategy, MetaTrader 4 is a good choice. You can download and install MT4 on your computer, then link it to your trading account.
- API: If you are a programmer or want to build a completely custom trading system, API is the best choice. You can use API to connect to the trading platform and build your own trading algorithms.
Detailed instructions:
- ProRealTime:
Log in to your trading account.
Find and activate the ProRealTime feature.
You will be guided through the next steps to get started.
- MetaTrader 4:
Download and install the MetaTrader 4 software from our website.
Open the software and log in with your trading account information.
- API: Contact customer support for detailed instructions on how to use the API.
Step 3: Build a trading strategy
Here are some basic steps you need to take when building a strategy:
- Determine your trading style
Day traders: aim to profit from short-term price fluctuations by actively buying and selling assets throughout the trading day
Swing trading: Hold positions open for several days or weeks.
Position trading: Hold positions open for long periods of time, even months or years.
Choose a style that suits your risk tolerance and the time you have available to spend on trading.
- Study the market
Learn to read and analyze price charts to better understand market action.
Recognize uptrends, downtrends, or sideways trends to make appropriate trading decisions.
Learn to recognize patterns such as candlesticks, trendlines, to predict future price movements.
- Apply technical and fundamental analysis
Use technical indicators such as MA, RSI, MACD to assess market momentum and trends.
Read news, financial reports, economic events to better understand the factors that affect prices.
- Create a detailed trading plan
Determine entry points: When will you open a buy or sell position?
Determine stop loss: At what price will you close your loss if the market moves against your prediction?
Determine take profit: At what price will you close your profit when your profit target is reached?
Risk management: Determine the risk-to-reward ratio that suits you.
- Test and optimize your strategy
It’s wise to practice your trading approach in a simulated environment before risking real capital.
Record your trades and evaluate the effectiveness of the strategy.
If the strategy is not working, adjust the parameters or change the strategy completely.
Step 4: Start Trading Live
Always set stop loss and take profit orders to limit losses.
Automated trading requires patience and discipline.
Conclusion
In conclusion, automated trading is a convenient method that saves traders time and effort. To make the most of this tool, choose a suitable supporting trading platform and don’t forget to combine it with other technical analysis tools. Good luck!
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