Author: Shanda Biggs
In todays post we are going to introduce an idea that might be very new to you. Some of you reading this post will already know what we are going to be discussing but to the newbies we want you to listen up. Today we are going to be talking about automated trading and breaking down what it actually means to trade with robots.
Automated trading is the process of having your trading strategy executed by computers. You can develop a significant edge when trading an automated trading strategy. This edge can come from the computer taking all of your trades and managing them for you. No more worrying about being available for every setup. There is no room for error in your trade management plan. You can have full confidence that you are taking the exact same setup every time.
This is exactly where your edge can diminish as a discretionary trader. If your strategy is in a period of drawdown it can be difficult to continue trading it. When you stop trading exactly how your trading plan states is exactly when your edge disappears. I know it can be difficult to continue trading through drawdown periods and that is why we are introducing a new way of trading to you!
Your ability to make consistent profits overtime is derived from being able to execute the same trading setup without effort or error. Why do you want to execute the same trading setup without error? Because this is how you determine your trading edge. Knowing exactly what gives you the edge in the market ensures that you can execute your edge without error.
Having an edge comes from being able to exploit opportunities in the market. The easier you are able to do this, the more profitable you will be as a trader. Automated trading allows us to exploit your edge in the market, automatically.
Sounds pretty cool hey? This means you do not have to sit at the computer all day in order for your edge to develop. If you have a sound trading strategy, you are able to go about your day doing the things you love while monitoring your portfolio of trading systems. This is powerful, because while being an automated trader, you can trade all types of systems and thus decrease your risk in the markets. By trading different types of systems such as trend following, reversal or mean reversion strategies you have the ultimate edge.
Markets may not be favouring your trend following system but they have presented powerful reversal setups. If you have 2 different systems to capture both market conditions you will effectively increase your ability to profit in all market conditions while reducing your risk of drawdown.
Making the jump to full automation with your trading can be a difficult thing to do. Mostly if you are a discretionary trader and used to sitting at the computer in order to execute your trades. What the main component of automated trading allows you to do is not get in the way of your own success.
Sometimes as humans we allow our emotions to get the best of us and because of this we sabotage our chances of success. While emotional trading is still prevalent in automated trading, it allows you to remove the emotion of determining if a setup is indeed a setup. Your ability to execute trades is no longer the primary component that makes you successful. Your trading system is.
As an automated trader, you no longer rely on your instinct to execute trades. How many times have your emotions controlled your trading? It is a fact that many traders lose money and do not make it as traders because they cannot handle their emotions. Through automated trading, your setups are predefined and your trades are executed by the computer where your finger does not have to sit on the mouse in order to pull the trigger. Imagine no more beating yourself up over missed trades! Doesn’t this sound good?
I thought so! That is why I took the step to automate my trading. I saw the many benefits to trading an automated portfolio of strategies. At Evestin Forex, we have developed a basket of strategies for you already! We have done the hard work for you by finding a strategy to automate, backtesting it, and then forward testing it! We have strategies that ACTUALLY work in a live market environment! What I would do if I was you and looking into ways to automate your trading is sign up for the free trial. You can pilot our strategies and see if automated trading is something that will suit your style of trading. Until next time… Happy Trading!