![]() If you don't know how to alter the program, the program will eventually be useless (unprofitable). Even if buying a program, most don't come with long-term support or updates as market conditions change. Some programming skills are definitely desired.For example, if volatility increases much more than normal then position size may need to be manually altered. Manual intervention is occasionally required, meaning automated trading is not fully hands-off.It still requires a lot of work to create and/or maintain the program.This data can then be used to alter the program or to show the trader when it is appropriate to intervene and turn the program off or on. For example, it may perform well in trending markets, but poorly in ranging markets. This will reveal weakness and strengths of the program. Once a strategy is automated, it can be easily tested in different market conditions (using current or past price data).Automating and testing a strategy is a good way to see if a strategy is viable under current market conditions. Manual trading has too many variables, whereas a program just does what it is told. Automated trading is the truest test of whether a strategy is viable or not.When a program needs work though, it may require a lot of time. This means that for certain periods of time an automated trading program may be less work than trading manually. While some intervention is required, once a trading program is created, it may require minimal maintenance for long periods of time.People who buy EAs don't receive this benefit, and they often don't know what is "under the hood." This process gives traders an in-depth look at their strategy. They force the trader to simplify a strategy down to a level where it can be programmed.if the strategy has proven itself profitable, this is a good thing. They will take trades that suit a strategy, even if the trader feels otherwise.EAs can take advantage of more opportunities than a human can. Once let loose, an EA can find opportunities in all the markets it is programmed to monitor. At any moment a human can only effectively monitor a few markets, but an EA can monitor hundreds. Automated software can monitor far more markets than a human can.The lightning-fast reaction time of the EA is beneficial in fast-moving market conditions. Humans, on the other hand, may freeze or question the trade. When a trade signal appears (to enter or exit), there is no hesitation on the part of the EA. EAs react more quickly than humans can.However, people using an EA still need to know when to intervene and when not to. EAs remove some of the psychological pressures of trading.Pros of Automated (Robotic or EA) Trading
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