If you’re looking for a trading solution that allows you to trade virtually hands-free around your busy schedule or you simply like the idea of putting your trading on auto-pilot, then you might want to consider using auto-traders to trade on your behalf.
Sound interesting? Read on to find out more about the pros and cons of auto-trading.
As the name suggests auto-traders are automated trading systems that will automatically enter and exit your forex trades on your computer. They are based on a precise, predefined set of criteria or triggers that instruct the software exactly when to open and when to close your trades.
The specific triggers will be unique to the particular strategy you are trading and can include trading indicators along with your unique money management rules. Auto-traders can be set to follow a wide range of commands and even have the ability to avoid taking trades during heavy news.
Let’s take the Rockin Renko expert advisor/auto trader as an example. You could have it set to enter a trade when the 200 hull moving average and the Trend Lord indicators on a 15-minute chart both signal a buy (or a sell). You can also set additional parameters such as your Lot Size, Take Profit, Stop Loss and/or Trailing Stop levels and more.
Once set, you can go about your day knowing that your auto-trader is working for you following the rules you’ve previously established.
Based on 5 of our most popular strategies, we offer the following expert advisors/auto traders in the Slick Trade trader store: Rockin Renko, Poppin Picaso, Sominex, News Trader and The Professor.
We also offer an Expert Advisor/Auto-trader creation service where our coders can create a custom expert advisor/auto-trader for you, based on pretty much any strategy you define.
If you are investigating auto-trading you will definitely want to consider joining our Sapphire members program. Sapphire includes a total of 7 auto traders including the 5 already mentioned at no extra cost, saving you hundreds of dollars monthly if you were to purchase the auto-traders separately.
The Pros and cons of auto-trading
Auto-traders follow a precise set of instructions. They therefore remove human error and avoid entering incorrect amounts or placing ‘the wrong trade’
Sticks to your rules
As long as all of the required triggers are met, the auto-trader will execute your trades consistently and according to your preset money management rules regarding trade size, entry and exit points.
Removes emotion from trading
Since trading is taken care of on your behalf stress is removed or reduced and impulse trading resulting from emotions is eliminated. Any indecision, hesitation and second guessing your strategy are all removed.
Speed of entry
Trades are entered automatically without the need for the human element of opening and accurately completing an order ticket with the correct information. In a fast moving market this can enable prompt entries before the price moves and can potentially place multiple trades with greater speed than humanly possible.
The main downside is that auto-traders and the systems they rely on are not 100% foolproof and can be affected by mechanical failure, server or internet downtime and platform issues which could all result in issues with executing and exiting trades correctly.
In addition the performance of the strategies themselves need regular monitoring and may need to be adjusted in changing markets.
Auto traders can be a great addition to bring diversity to your trading plan for the reasons outlined above. However don’t make them the sole focus of your trading strategy. And be aware of the limitations as well as the positive benefits they can add to your trading.
Slick Trade Online Trading Academy
If you’re ready to learn, to take control of your financial future and create your own economy, join the Slick Trade Sapphire Members community today. Click on the link to find out more.