What is Automated trading?
Automated trading has become more and more popular over the past few years. This is perceived as the best way for novice traders to enter the markets and the trading world, without putting in the immense amount of time and effort needed to master the markets while creating and maintaining profitability and stability.
Automated Trading, which is also known as Robot Trading, Bot Trading, Black Box Trading and Algorithmic Trading; can be done using several tools.
On Metatradrer4, a common trading platform, they may also be referred to as Expert Advisors (EA’s).
In algorithmic trading, many different technical indicators are used to define order entry and exit points. All forms of Automated Trading strategies place orders automatically and submit them to a market center, exchange or ECN (the broker).
There are basic predefined sets of rules based on technical analysis, but not limited to it. Algorithms may also be based on additional inputs from various electronic resources.