Trading currencies, cryptocurrencies, commodities, and stocks have never been more accessible to ordinary people, thanks to the internet and many tools developed to ease the trading process.
Thanks to the internet, financial markets and their benefits are within reach of people far from being financial experts and trading professionals. We do not claim that financial knowledge is unnecessary in trading endeavors today.
Still, the fact is that human and manual trading has been largely replaced with algorithms, also called trading bots, that help millions of inexperienced and experienced traders to navigate the markets.
What is auto-trading software?
Auto-trading is trading orders executed with the assistance of trading software. The software enabling auto trading can be multi-asset or focused only on one asset,, such as cryptocurrencies.
These algorithms are highly intuitive and designed to predict market’s minor changes within seconds. In that way, they are far ahead of humans’ ability to follow the ever-changing market conditions that affect trading decisions.
You can use an auto trading bot as a part of the service offered by your broker, or you can use it separately without any engagement with the brokerage companies. Some of the most famous auto trading tools these days are Meta trader 4 and 5, ZuluTrade, and Biticodes.
The last one is pretty new and turns out to have amazing results given the number of users amounting to more than half a million.
Automated trading has benefits and risks like any investment.
Benefits
Day by day, automatic trading is gaining momentum in the market. Many traders prefer this strategy instead of spending hours analyzing the markets in front of a computer or smartphone. Here are some good reasons to do automatic trading.
A considerable time saver: you can go about other activities while the software trades for you.
Rational and emotionless trading: the robot’s decisions are made without emotion or stress.
Discipline: robots are automated and set up to execute what is intended carefully.
Improved command entry speed: Computers have faster intuition than humans. In addition, orders are automatically generated, as are profit targets and stop loss protections.
Diversification of trades: the bot allows users to trade multiple accounts or strategies simultaneously. It allows the risk to be spread over various instruments while creating a hedge against the loss of positions.
The risks to be aware of
- Automated trading also comes with risks that traders should consider beforehand.
- The risk of over-optimization: the robot searches for the almost perfect strategy.
- The possibility of anomalies: you have to check your trading from time to time because the robot can be defective. Indeed, it uses limited resources such as the internet and servers that can suffer breakdowns or be hacked.
- Programming discrepancies: There is a difference between manual and automatic, leading to delays.
- A risk of scams: it is true that some platforms are pure scams with fraudulent software. Do good research before committing.
The criteria for choosing your trading bot
You should do thorough research first when deciding which software to opt for. Read reviews such as Biticodes review, check out other users’ opinions on the forums, make sure the price is in line with your investment capacity, and ensure they have efficient customer support and good profit-making potential. Of course, in any case, whatever software draws your attention, before investing any cent, make sure to try it out on a demo version.