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Everything you need to know about auto trading

Have you finally decided to invest your money into financial markets like crypto, foreign currencies, and commodities but are not confident about your skills and experience? Don’t worry because automated trading has made online trading more available to thousands of experienced, novice traders worldwide. Here are some hints for you before getting started.

What Assets Can You Do Automated Trading With?

Equities: you have the choice between European, American, Asian companies, etc., in almost all sectors of activity and according to the offer of your broker. Automated stock trading is usually and precisely done with stock CFDs (using leverage where possible), allowing you to profit from small changes in stock prices in the short/very short term.

Currencies/forex: you have the choice between major currency pairs (USD/CH, NZD/USD, GBP/USD, EUR/USD, USD/CAD), minor currency pairs (GBP/JPY, AUR/ JPY, GBP/CAD, NZD/JPY) and exotic currency pairs (EUR/TRY, GBP/MXN, JPY/NOK);

Indices: you can trade the CAC 40, Nasdaq, FTSE 100, Nikkei 225, Dow Jones, NYSE, S&P 500, etc. ;

Raw materials: gold, silver, wheat, petroleum, cocoa, diamonds, wood, cotton, rubber, rice, etc. Automated trading of these assets is best done with CFDs with leveraged trading to allow the auto trading robot to exploit the price changes of these materials without the need to trade them for real or spot.

Cryptocurrencies: are popular as assets in automatic trading. Some are automatically traded in the underlying, while it is better to use CFDs and leverage for those that are not very volatile. You have a wide choice of cryptos to auto-trade: Ethereum, Bitcoin, Ripple, Litecoin, Tezos, ADA, Cardano, etc.

CFDs in general: automatic trading with CFDs makes it possible to take advantage of price variations of certain underlying assets without the need to hold these assets. It is, therefore, sufficient, from analyses, to predict in which direction (up or down) the price of an asset will evolve and to configure the automatic trading program accordingly. CFDs are available for many assets: stock CFDs, bond CFDs, commodities CFDs, cryptocurrency CFDs, etc.

Automatic Trading: Which Software to Use?

Some of the most prominent ones in the market are:

  • MetaTrader 4
  • MetaTrader 5
  • Biticodes
  • ProRealTime
  • TradingView
  • DupliTrade

These are just a couple of the most reliable at the moment, but when you have to make a final choice, make sure to do the proper research. For instance, Biticodes draw our interest. Then the next step would be to read Biticodes review and compare it with other software’s reviews in order to have a better grasp of the features they offer.

Automated Trading Advantages

  • Elimination of errors and trading risks related to emotional and cognitive factors
  • Access to more opportunities and stock exchanges
  • Improvement of trading strategies thanks to backtesting tools used by trading algorithms
  • Extreme speed in the execution or placing of orders on the financial market
  • Considerable time saving
  • Very high yield percentage
  • Continuous trading activity (24 hours a day)

Automated Trading Disadvantages

  • Risk of over-optimization
  • Bugs and malfunctions that may occur
  • Possible improvisation of the algorithm in the event of crashes, crises, or the impossibility of executing an order

Although the auto trading process is quite straightforward, extremely precise regarding the market analysis, and proved as more efficient in performing complex strategies approaches, you should be aware of these disadvantages before starting trading.


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Agatha Correia Pinto, a social media strategist, shares actionable tips and strategies for successful social media marketing.

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