Automated Trading: Useful Or Not For The Trader?
Stock exchange, crypto-currency exchange, Forex: the opportunities to earn money on the Internet are increasing from year to year. If you are interested in lucrative opportunities online, maybe you have heard of trading robots.
Allowing you to automatically engage in trading, these technologies based on artificial intelligence are full of promise. But are they handy? That’s what we wanted to find out.
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What Is Automated Trading?
Performing in the Forex market requires constant attention and excellent analytical skills. It is not for nothing that trading is a profession in its own right!
Artificial intelligence constantly analyzes the market in search of the best opportunities. They look for “buy signals,” that is to say, that their algorithms can predict that the price of a stock will rise. Conversely, they can forecast a decline and sell the stock at the right time. We also talk about automatic trading.
The Advantages Of A Trading Robot
The first advantage of the trading robot is that it allows people who are short on time to play with the courses. It is well known that traders work a lot: not only should you not miss any opportunity, but also be aware of sell signals as soon as possible so as not to lose money.
By letting the robot work automatically, you won’t have to do anything. But, above all, a robot is objective. It is a priori capable of making more reliable decisions than those of humans. Artificial intelligence can consider a wide range of parameters and is never fooled by appearances.
Trading robots, therefore, make it possible to save time and be more time-consuming and reactive in the markets. However, do not believe that this type of software is aimed at neophytes, quite the contrary!
A trading robot’s configuration requires a trader’s expertise and is part of an overall trading strategy. Before entrusting your portfolio of stocks, forex currencies, or cryptocurrencies, to a robot, you must fully understand the issues. It must therefore be seen as an aid to the trader to be more reactive and do more things.
The Disadvantages Of The Automatic Trading Robot
Artificial intelligence manages to analyze simple parameters such as evolution curves but cannot consider the economic context, for example. As such, it cannot offer real reasoning as professional traders do.
For a trading robot to work fully, it must be personalized with knowledge that includes the economy as a whole, news, etc. In other words, trading robots will help you find small opportunities that are pretty easy to detect but will be unable to find the most lucrative ones.
Finally, there is always a risk of choosing the wrong trading software. Therefore, read software reviews, such as BitiCodes review, to better grasp what the possibilities of the specific bot are and if it meets your needs.
Automated Trading: Useful Or Not For The Trader?
A reliable trading robot is almost always helpful. For beginners, this is a great way to get into the world of trading without taking too many risks. For the more experienced, it is possible to gain significantly in efficiency by customizing the tool. On the other hand, trading robots will never replace the expertise of a professional trader. It is a valuable tool, but it is impossible to rely entirely on it.