Auto-Trading is a subset of algorithm trading that allows traders to take entry and exit as per money management rules set in the trading system. Orders are executed automatically via computer, and the best thing is that the emotions are out of the trading because of automation. Many tools are available on the Internet, such as Bitcoin 360 AI, which offers auto-trading features for everyone.
As per reports, 70% to 80 % of shares, which are traded on US stocks, come from automated trading systems. Therefore, the trade entry and exit rules are mainly based on simple conditions such as moving averages or a strategy of an expert or a qualified programmer.
In general, automating a trading system always requires software where the rules are written in their proprietary language. For example, Bitcoin 360 Ai is popular auto-trading software that allows users to make money without putting in more effort. It is a highly reliable and secure platform that enables users to transform their lives by investing a minimal amount.
How does Auto-Trading software work?
Auto-Trading software works by following different hi-tech algorithms to execute trading orders. Once users have chosen to go with auto-trading software, they will set all the investment decisions to the software’s trading system.
The Auto-trading software algorithms are pre-planner on various scenarios, and that’s why the success rate of Auto-trading software is increasing. Investors cannot control anything, as the rules are made with proper analysis, which may provide investors with a hefty profit margin.
Pros and Cons of Auto-Trading Software
- Auto-Trading software allows users to execute a large volume of orders effectively. It means that traders can diversify their risks by investing in numerous investment instruments.
- Human emotions are entirely avoided in auto-trading software, which is the biggest reason for losses. There will be no interference of human emotions, which leads to positive returns for the traders.
- Backtesting is the most significant advantage of Auto-Trading software, where the software applies trading rules to historical data to determine its viability and reduces the chances of unsuccessful orders.
- Auto-Trading software is suitable for quick order execution, but at last, it is a software that is technology backed and may face malfunction or technical failures. If it happens, users may suffer huge losses because of incomplete execution.
- We know that the whole trading process is automated, but monitoring the results is essential. A system can experience many issues such as technical failure, power-cut, etc. These factors may result in incomplete orders or missing something. That’s why the monitoring process is always necessary.
- Traders should know that over-optimization and backtesting can show good results on paper but not always on live trading. That’s why the traders always have to adjust and manage the trading strategy for better results.
Auto-Trading software is mainly used by investors who don’t want to execute orders manually and want to rely on automated algorithms to execute the orders on their behalf.