Automated Trading With MultiCharts: Automated Trading
AAA
  1. Automated Trading With MultiCharts: Introduction
  2. Automated Trading With MultiCharts: Automated Trading
  3. Automated Trading With MultiCharts: Automated Trading with MultiCharts
  4. Automated Trading With MultiCharts: Conclusion

Automated Trading With MultiCharts: Automated Trading

In automated trading, traders define specific trade entry and exit rules and allow the computer to handle the order entry functions. Trade rules vary from simple to complex, and as long as the rules can be absolutely defined and fall within the functionality of the trading platform, they can be programmed as part of an automated trading system.

There are several distinct advantages in automated trading. Since the computer executes the trade orders, automated trading removes much of the emotion from trading. Discretionary traders, who manually enter and exit trades based on current market conditions, may find it challenging at times to "pull the trigger." Similarly, discretionary traders may also find it difficult to sit on the sidelines, and may end up overtrading out of fear of missing an opportunity. By removing some of the emotion, automated trading allows traders to "plan the trade and trade the plan."

Automated trading also eliminates costly pilot error mistakes (assuming the system has been developed and programmed correctly), and enables levels of speed and precision that would otherwise be unattainable for most traders who simply do not have the reflexes and accuracy of a computer.

Note: Always test a system before going live, and start with small lots once you do start trading in a live market.

Automated Trading With MultiCharts: Automated Trading with MultiCharts

  1. Automated Trading With MultiCharts: Introduction
  2. Automated Trading With MultiCharts: Automated Trading
  3. Automated Trading With MultiCharts: Automated Trading with MultiCharts
  4. Automated Trading With MultiCharts: Conclusion
RELATED TERMS
  1. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  2. Indicator

    Indicators are statistics used to measure current conditions ...
  3. Intraday Momentum Index (IMI)

    A technical indicator that combines aspects of candlestick analysis ...
  4. Appraised Equity Capital

    The excess of the market value of an asset over its book value. ...
  5. Asset Valuation Review (AVR)

    A process that establishes an estimate of the value of a failed ...
  6. Derived Investment Value (DIV)

    A valuation methodology used to calculate the present value of ...
  1. What is a common strategy traders implement when using the Trade Volume Index (TVI)?

    Learn what the trade volume index indicates, how to identify accumulation or distribution using it, and how traders use it ...
  2. Does investing in small cap stocks have advantages over investing in big cap stocks?

    Learn about the advantages of investing in small-cap stocks, and find out why some investors buy shares in small-cap rather ...
  3. What are the macroeconomic effects of allowing stock buying on margin?

    Learn about the macroeconomic effects of allowing stock purchases on margin, such as increasing present access to investment ...
  4. Why would you look at year-over-year rather than quarterly growth?

    Find out why year-over-year growth analysis is more common than quarterly growth analysis in stock valuation and why investors ...

You May Also Like

Related Tutorials
  1. Fundamental Analysis

    Discounted Cash Flow Analysis

  2. Active Trading Fundamentals

    Introduction to Stock Trader Types

  3. Trading Strategies

    Guide to Pairs Trading

  4. Trading Systems & Software

    Beginner's Guide To J-Trader

  5. Trading Systems & Software

    Beginner's Guide To CQG Integrated Client Trading Platform

Trading Center