jeudi 3 mars 2011

The automated trading

Definition:
The automated trading has existed since the 80s. It is a practice commonly used by major banks and investment funds consisting of stock orders passing through a robot that scans the market with algorithms.
It is a typical of Forex, encouraged by low investment costs and the high liquidity of the market (lets  buy and sell quickly).

Gradually, the automated trading becomes more democratic, although individuals will never take advantage of all the technological benefits of financial firms.


The strengths:
The automated trading brings great advantages compared to traditional trading:
- Robots analyze multiple charts simultaneously and place orders anytime ,day and night.
- Robots do not make the mistake of inattention.
- The robots perform complex calculations in a record time.
- The robots allow scalping.

How can I learn more?
Metatrader trading platform is the most used and most accessible to install robots (called Expert Advisor). Metatrader is offered by most Forex brokers.

These robots must be programmed in MQL4, a proprietary programming language specially developed and very flexible. They may for example be based on historical prices and technical indicators.

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