subject: Automated Trading To Benefit The Traders [print this page] The world of trade has changed a lot with automated or algorithmic trading. The word automatic attracts many people with the fact they need not to do anything to operate the appliance as it will operate on its own. The concept is somehow similar in the case of automated trading where one can predict the financial market with some computer programs, which is highly beneficial for the traders in the sense of making larger trades in a small fraction of time.
Computer programs make use of some mathematical approach to carry out the operations and the same is applicable in case of automated to algorithmic trading. With the help of some mathematical calculations, the computers can analyze the market and when these programs find that the conditions are favorable they trade on behalf of traders. According to some surveys, it was proved that people prefer automated trading for their benefit and rely on them for the success of their trade making more and more business.
Its obvious that human mind is less efficient than the computer programs and algorithmic trading is popular for this reason only. In automated or algorithmic trading, the programs based on mathematical formulae or functions generate trade consuming very less time that is most effective and efficient. Various market strategies decide the trade and hence, its almost impossible for humans to reach the same goal in the same time as targeted by the automated trading. The algo trading can keep constant eye on the market 24/7, 365 days so that you dont miss any single update and end up in winning the game. Further benefit of this trading system is that, once created it acts instantaneously without missing a single chance. There is no time lag as things must be done right now for achieving the goal. In fact foreign markets exchange is also using algo trading for making business.
Other side of the trading system that benefits the trader is the lack of emotional decisions that sometimes misguides the traders. Even the part time traders can manage to do the full time job with this trading system as the system can trade on their behalf. The trade program, on which the trade is based, removes the limitations of human minds thus, resulting in the increased efficiency. It is almost impossible for a human to go through each and every detail of the trades they have entered and hence, to ensure the accuracy, these systems are used. Furthermore, these systems enable the traders to enter multiple trades at a time while maintaining accuracy and efficiency.
So the traders can efficiently trade using these algorithmic trading systems without worrying about the efficiency.
