Traders nowadays are beginning to use an auto trading software that monitors and executes a trade. One of the biggest advantage of this is that it can put the emotion aside as it automatically trades once the criteria it is looking for is meet. For those traders who have no guts and are afraid to “pull the trigger”, an auto trading software can do the job for them without no hesitation. No emotions are involved in the process of trading which can help things go smoothly.
Once you started using an auto trading software, you don’t need to worry about backtesting. All you need to do is provide specific information on what exactly to do and the computer will do it just as it was programmed. Always remember that you should leave no room for interpretation as the computer has no ability to guess what. It might just ruin your plan and strategy in live trading.
In trading, you should always discipline yourself to achieve a certain goal in your mind. Emotions that interfere with your decision can make or break a trading such as the fear of risking your money or the desire to get more profit than what is expected. By using an auto trading software, you do not have to worry about any of this as it will follow no emotions and it is automatic so discipline is out of the picture. Pilot errors that humans can easily make such as making 100 shares into 1,000 shares can also be easily avoided.
In order to maintain consistency, traders always seek wins in the game. No matter how good the plan is, there is always a chance that you might lose. It’s all about winning and losing. And if a certain trader experienced losing three times in a row, he might lose motivation and skip the next trade where the chances are he would win. This would just destroy the system and ruin the consistency of the trade. By using an auto trading software, it doesn’t matter if you win or lose. It will always continue to trade and maintain the consistency of the trade until the very end.
The market changes every second. The ability to adapt to new rules and changes is a big advantages and might even change the outcome of the trade. By using an auto trading system, you can protect stop losses and profit targets.
A computer can do all the work in a matter of milliseconds. One thing that humans cannot do. They can monitor the trades, scan different opportunities to win across the market and grab it by the second it confirms.
You should always remember that an auto trading software has its own disadvantages too that can ruin the plan. Although it was programmed to trade and catch opportunities in just a matter of seconds, for example, once the internet connection is lost a trade might not be able to reach the market that just ended up losing the trade. You should start with small trades when using an auto trading software and see how it works for you before you decide risking large amounts of money.