Developing An Automated Trading System
Computer system has changed the human life. Many human aspects depend on this system. From simple cases such house ware like washing machine into the complicated medical equipment and space craft now computer controlled.
The financial service also use extensively this computer system. Marketing, trading and financial control now use computer system.
The forex trading as one of the most liquid market also uses the computer system. Together with the internet technology, the forex trading take many advantages from this system such as:
- World wide market access
- Almost instant and real time execution
- Comprehensive analytical and trend calculation
- Automated Trading strategy execution
Which Strategy Should be Automated?
- Do you use a fully a technical analysis?
- Do you use a well defined strategy, including :
- entry condition,
- exit condition either by stop loss, take profit or specific exit condition,
- position sizing to calculate the gain you may achieved or any losses you may accept.
- Does your strategy executed in the short to the midterm time frame?… and …
- Do you want to sit back, enjoy your life and make the system and money work for you?
If you answer “Yes” to all those questions, you should consider to write your trading strategy into an automated system.
Why Should I Make It Automated
Many advantages can be achieved by using computer controlled automated trading system:
- The system will identify and react to the market movement faster. The system will calculate any market indicators you use as consideration to take position in the trading strategy and automatically take the trade position for you.
- More market penetration simultaneously. Computer system have ability to calculate and monitor many data feed at a time. This mean that you can include multiple conditional entries and exits, profit targets, protective stops, trailing stops, and more in your strategies, and have them all automated simultaneously.
- Get rid of any human emotion in the trading strategy and increase trading discipline.
- Run the strategy 24 hours a day, 7 days a week, 365 days a year.