An automated trading system is a computer trading program that automatically submits daily trades to an exchange for example the Instinet. It allows traders to submit trades to the market without necessarily being physically there. The crossing price is determined by a VWAP measure. It further enables conversations and negotiations to take place between bidders. The benefit being reduced communication costs.
If you are still out there sitting on a fence, reasoning whether you should take the new automated technology or stick to the manual method. Then here are a few words to pursue you to sit no longer on the fence, in fact I think your back must be hurting.
The automated trading system has the capability of generating currency signal. This is a computer updated version of the prediction that the Forex analyst used to do in the manual Forex exchange. The analyst would watch the market and make predictions and finally sell them to the highest bidder. In the computer aided Forex system, it is programmed to constantly analyze the market for you and make predictions all day so that you are always on the winning side of each trade.
You are assured a risk free environment when you start using an automated trading system. It is able to stop loss and grab profits. So the program will always work for your best interest while you are away. In the event that you are about to incur a loss in a given trade, the program automatically discards the trade off to minimize the loss and vice versa for the profits. This provides a peace of mind; you won’t have any fear of losing your money because it is in good hands.
The automated trading system works around the clock. While you are having a good nap it works for you and as long as the market is open it will always be on the lookout for all trades. You don’t need to spend some extra cash to pay a broker to keep an eye on every trading activity. The payment for the system is only once whereas it would take monthly salaries to pay the broker.
With the automated trading system you are able to monitor more than one market simultaneously. Gone are the days where you had to stay glued on your screen, trying to keep up with each stock at each instance. Automated trading systems are equipped with a trade station that gives you preference to view dozens of securities at a single time. It doesn’t matter how complex and conspicuous your trading strategies are, it will always follow multiple market for you in regards to the criteria you provided for it. This means you can actually give it multiple conditions such as conditional entries and exits, profit targets, protective stops and trailing stops all of which can be simultaneously automated without much hassle.
The automated trading systems were basically meant to reduce or elude the fears associated with emotions. This of which, it has effectively accomplished. Trade Station helps you combat emotions by confidently getting into the virtual market based on historical strategies that you feed the system with. All is required of you is to sit back hands on your chest as you await to pocket the profits.