The world of online trading is becoming more and more sophisticated with the passage of time. Just a few years ago, the biggest revolution in this industry was a trading platform that allowed you to trade various assets and trading instruments from the comfort of your home. However, the journey of making things easy and convenient is never over for humans. So, the comfort of home while trading was not enough. Developers continued to make progress and they finally came up with automated trading platforms. Here is a detailed review of what these platforms are and the benefits they offer to you as a trader.
Understanding An Automated Trading Platform
Before we get into the details of what these platforms are, here is a detailed automated platform review for you to gain some quick insight into the matter. So, when it comes to an automated trading platform, there is nothing too complicated and difficult to understand. A trading platform is a term used for a software tool that allows you to trade. You can trade forex, stocks, commodities, cryptocurrencies, indices, etc. on a trading platform. In addition to that, you can use a variety of financial instruments to trade these assets. When you wish to trade stocks, you don’t have to own them.
The trading platform allows you to trade stocks and other assets through ETFs, CFDs, Options, and many other instruments. Some trading platforms are designed for a particular type of instrument while others provide you with a variety of options on the same software.
Now that you understand a trading platform, you should not have a hard time understanding what an automated trading platform means. It is a trading platform that allows you to trade assets in real financial markets through automation. In other words, you do not have to be involved in your trades when you use an automated trading platform. You can just switch on the automatic switch on the platform and it will start trading for you.
Details of How an Automated Trading Platform Works
The Automatic Switch
When you sign up on the trading platform, you have to provide your personal details first. Once you have provided your personal details and fulfilled other requirements, you land inside the automated trading platform. It provides you with access to charts, graphs, and other useful information that can help you with your trades. Now, it is up to you to trade automatically or go with manual settings. When you are in the software for the first time, it is on manual trading. You can then flick the switch and make it trade on your behalf.
It might not seem believable when someone tells you that you just flick a switch to use an automated trading platform. That’s true, you can’t do that. Every trader is unique and likes to trade in a particular way. That’s what an automated trading platform has to respect. So, before the platform can trade on your behalf, you have to provide it with some filters. These are the criteria that you define to the software so it can execute trades on your behalf. When the conditions in the market meet your pre-specified trading conditions, only then the software goes ahead and trades on your behalf.
Trading platforms are designed with different users in mind. If you are a basic trader and do not know much about coding, you will get access to a trading platform that allows you to choose your filters on a graphic user interface through switches, sliders, drop-down menus, etc. On the other hand, if you know some coding, you can define to the software how it should trade on your behalf through coding. This type of complex trading is very specific and can generate some unbelievable outcomes for you.
Benefits of an Automated Trading Platform
Trade Fast without Delays
One of the reasons behind the creation of an automated trading platform is its quickness. As a human, you can only keep an eye on the market so much. Even when you are looking at the market, you can monitor all the different aspects at the same time. On the other hand, the software can do a lot more processing than your mind in such little time. So, it takes a decision without delays and executes your trades for maximum profits.
Make Money When You Sleep
It is true that if you have defined proper criteria for your automated trading platform, it can trade on your behalf when you asleep. That’s one of the reasons automated trading platforms have come into being. You can just define the type of trades you want to enter and the automated trading platform will enter them.
Earn Profits with Minimized Risks
Automated trading platforms have evolved greatly and now allow options that you could not have used a few years ago. Today, you can teach your automated trading platform everything you want. You can implement stop loss and take profit strategies and feed them into your trading platform. This will ensure that the trading platform follows the strategy and stop trading after a certain level of loss.
By now, you must have a great understanding of an automated trading platform. Keep in mind that some well-established online brokers can also give you access to the automated side of their trading platforms. So, you can always sign up with them and say goodbye to trading platforms that claim to make you millions of dollars in no time if you use their trading bots.