Automated Trading – Pros and Cons
I am testing the DupliTrade automated trading platform. Very interesting! I have done some automated trading before with various results. One test I did using Tradency – it worked well for a while with a couple of trading providers, then it tanked. Trick is that some strategies work under specific market conditions. Then when things change, say from a bullish to a more bearish market these strategies won’t work as well.
Check out their guide: How To Use Automated Trading Systems
The lessons learned so far is that to be profitable using automated trading platforms you need to monitor the selected strategy performance and change to whatever works at the time. Automated trading, even with a successful platform like DupliTrade is not a 100% set-and-forget. However, you don’t need to watch it every day. If you check in weekly, and you see results slow down – look at the various strategies and pick the one that is profitable at the time by looking at open positions and recent close positions.
If you do that – you will most likely be profitable over time. FREE trial.
DupliTrade Automated Trading Pros and Cons
Automated trading, or algorithmic trading, surely is a great tool for inexperienced traders. Executing trades with an automated system has many benefits, however, that does not mean there are no risks involved. Here are the major pros and cons of automated trading:
- Emotion control – The emotional component is eliminated, with automated trading you don’t need to make the tough emotional calls by yourself.
- Time Saving – Not having to study how to trade the markets saves you a great deal of time and enables you use your free time for other important causes.
- Instant testing and optimization – You no longer need to sit in front of the computer for hours and attempt to monitor and analyze all market movements, automated strategies are able to monitor several markets and assets simultaneously. There are growing numbers of trading platforms that offer automated trading. Metatrader4 is probably the most popular one of them all, since it offers powerful functionality for testing trading strategies, as well as providing full historical data.
- Lightning speed decision processing ability – Automated strategies react immediately to the market situation, since it is factored in their program, while A trader can be too slow to react when deciding to open the order or not. Automated strategies enter the market instantly, the second the necessary signal arrives.
- Round-the-clock market-monitoring – The automated strategy providers are monitoring the markets 24 hours a day for you, something that’s hard to accomplish when you have a job or any kind of obligations.
- Beginners luck – Automated trading makes life easier especially for inexperienced traders, since strategy providers are doing all the hard work for you.
New traders can observe the actions of a strategy provider and learn how to read the signals in the markets.
- Broker-independent – Metatrader4 platform can be used with a variety of Forex brokers. This means that an automated trading strategy can be copied without any specific broker logic required, and so, traders can easily copy any strategy regardless of which broker the strategy provider uses.
- Lack of Emotions – Fully automated strategies have no intuition and can’t make discretionary decisions.
- No room for error– System and Network errors can affect your trades and lead to losses. It can be risky to rely solely on fully automated strategies.
- Keeping up with market changes – You need to make sure your automated strategy is constantly up to date based on economic and political news.
- Costly to buy and hard to develop – Obtaining a good automated trading system is not an easy task. You can either put the time into developing one, hoping you’ll get it right, or buy one, paying a substantial amount of money and hoping you got a good one. In both cases, this will require much research, testing and luck.
DupliTrade offers you the best of both worlds!
DupliTrade provides you with our automated copy trading platform, which allows you to automate your trading by automatically duplicating the actions of expert traders directly into your trading account.
With DupliTrade’s innovative platform, you can enjoy all the pros of automated trading and eliminate most of the cons! Our strategy providers are extremely professional and experienced, it is their job to avoid errors, keep up with the markets changing, and it their own money at stake so it is in their best interest to trade responsibly! Our cutting-edge technology lets you connect your MT4 account to our platform without installing, buying or coding anything and lets you start trading like an expert from day one!