Auto Trading Overview

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Autotrading

What is Autotrading?

Autotrading is a trading plan based on buy and sell orders that are automatically placed based on an underlying system or program. The buy or sell orders are placed when the trade conditions in the underlying system or program are met.

Key Takeaways

  • Autotrading is when buy and sell orders are placed automatically based on a programmed strategy.
  • Advanced autotrading, which limits human interference in the trading program, requires a sophisticated and well-written trading program. The program still requires human monitoring to assure it is working properly.
  • Autotrading allows for rapid execution of orders, as soon as a programmed strategy’s conditions are met.
  • Autotrading programs can be based on nearly any strategy, but the strategy must be programmable, and ideally, the strategy should be thoroughly tested for profitability before attempting to program it.

Understanding Autotrading

Autotrading is a type of trading plan that allows investors to capitalize on market opportunities in real time. It typically involves complex programming and in some cases sophisticated trading platforms that support external programming or plugins.

Traders can program the trading software, or connect a program to the trading software, to make automated trades based on a customized trading strategy.

Basic forms of autotrading can also be utilized by all types of retail investors. For example, setting orders that will execute in the future when certain criteria are met is the most basic form of autotrading. On a more advanced level, autotrading can potentially eliminate human input entirely. Once the software is programmed, it will continue to run without the need for human interference or input. In the advanced case, program traders will still monitor their programs closely to make sure it is operating as expected.

Overall, autotrading systems are used in a wide range of markets including stocks, futures, options, and forex.

Autotrading Capabilities

Autotrading requires a pre-determined trading strategy. The strategy is the basis for the autotrading program, defining when and why it will trade. It can be structured in various ways for all types of investors. Retail investors may deploy basic autotrading plans that buy investments at regular intervals throughout the year, or that place conditional orders in stocks that meet certain parameters. Conditional orders allow an investor to enter trades at specified levels for automatic execution when a price is reached.

Institutional investors and technical traders will use complex trading systems that allow for conditional orders and strategies such as grid trading, trend trading, scalping, or fading.

Many technical day traders will only work with brokers that allow plugins or external programs to connect to their platform, or that offer a coding program within the platform itself to create indicators and autotrading programs.

Brokerage platforms such as TD Ameritrade and Interactive Brokers, for example, offer coding and autotrading capabilities. Institutional investors will typically have their own proprietary trading platforms that allow for autotrading through algorithmic programming.

Autotrading Strategies

Institutional investors may use complex algorithms that seek to place trades for investment portfolios based on defined criteria governed by a portfolio’s objective. This may include buying or selling securities automatically to maintain a specific percentage or dollar allocation to each stock, or matching the holdings in the portfolio to an index.

Technical day traders will use autotrading to invest based on technical market signals. They commonly use complex conditional orders for auto trading. These types of orders allow an investor to specify an entry price and build a collar around the trade to institute pre-determined profit and loss levels for risk management. Autotrading programs can be built to capitalize on trends that develop, trade gaps, trade ranges, or scalp the bid/ask spread. There are countless strategies. Utilizing them is only limited by the trader’s ability to come up with profitable strategies and effectively program them.

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Autotrading is also popular for investors in the forex market. Most brokers offer a platform that comes equipped with the ability to install programs provided by other traders and businesses. The widespread use of autotrading programs in the forex market means there is a plethora of autotrading software which is essentially junk, untested on live trading conditions, and unprofitable. When buying a trading program, tread carefully as the arena is fraught with scammers offering the hopes of riches for a small (or large) fee.

Forex traders can also create their own trading programs, using MetaTrader4 or MetaTrader5 coding language called MQL4 and MQL5, for example.

Example Criteria to Consider For an Autotrading Strategy

Autotrading may sound simple, but programming even a simple trading strategy requires a lot of thought. Rules need to be simple enough to be coded, and can’t include subjectivity, as the computer needs defined rules to follow.

Things to consider include, but are not limited to:

  • Position size, and how it will be defined.
  • How trades will be entered, and what specific parameters will trigger a trade.
  • How trades will be closed, and what triggers the closing of a trade.
  • The programmer will also want to think of constraints on the system, such as when it shouldn’t or should trade.
  • They may also wish to put in some safeguards.

These topics are elaborated on in more detail below.

Position Size, and How it Will Be Defined

It could be defined as position size is equal to 10% of account equity, for example. Or it could be more advanced, first defining the difference between the entry price and stop loss, setting a maximum risk, such as 1% of the account capital, and then defining the position size based on the 1% risk and the distance between the stop loss and entry on the particular trade. This more advanced position sizing approach is sometimes called optimal position sizing since the position size changes based on the particulars of a trade.

How Trades Will Be Entered, and What Specific Parameters Trigger a Trade

For example, for a trade to be entered on a moving average (MA) crossover requires that the price first be on one side of the MA, and then be on the other. The data source must also be specified. How is the price determined: the last price? the bid price? the ask price?

How Trades Will Be Closed, and What Triggers the Closing of a Trade

This could be accomplished by placing limit orders and stop loss orders at the outset of the trade. These orders will close the trade at the order prices, whether the trade is profitable or unprofitable. A more complex strategy could be to program a trailing stop loss.

The Programmer Will Also Want to Think of Constraints On the System

This includes things like such as when the programmer shouldn’t or should trade. For example, the programmer may not want the program to run until five minutes after the stock market opens. Therefore, they would need to put in a time constraint in the programming code.

They May Also Wish to Put in Some Safeguards

For example, if more than 5% equity is lost, or an open trade is losing more than a defined amount, the program closes all trades and/or an email is sent to an administrator to check on the program.

These are basic criteria to consider when making an automated trading program. The more complex the system, the more criteria and factors that need to be considered.

Auto Trading Overview

Auto Trading is a trading type that use computer-based softwares to automatically execute trading actions in forex market.

Automated trading is becoming more and more popular nowadays. Being able to trade forex automatically is important when you are working with a solid strategy.

Why use Auto Trading?

Auto Trading has a lot of benefits that help you to take advantage in trading forex:

Now you don’t need to monitor the market all the time.

No mistake from emotion anymore.

Following the rule has never been easier.

Trading actions are made by accuracy and speed of computer power.

Allows to copy trading result on multi-accounts.

Automated Forex Trading Softwares & Tools

From the needs of ourselves, we know what is good for traders and created trading tools in the way that best serve the traders.

Our auto trading tools are serving traders from over 40 countries in the world. Most of our clients have excellent experience and positive feedback.

Our auto trading tools are programmed to work on MetaTrader, the most popular trading platform. So, it is very easy and convenient for any trader.

We have flexible policy in providing our products, so you can purchase it, subscribe it or even get it for FREE.

With all of those, why don’t you start to browse our product list now?

We accept payments via:

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Automated Trading Software: The Top 4 (Reliable) Auto Trading Systems

We all like to make extra money, which can be and incredible boon to you and your household. Trading stocks, options, and fures via Automated Trading Systems (ATS) can be a great way to augment your income, and while trading isn’t always easy it can often offer you a nice cash flow.

If you want to use the best automated investing service, Sign Up for TradeSpoon. It’s the best investing service I have used.

A simple explanation of what stock, options or futures automated trading involves would be that it is a computer program that is able to create orders. It then submits these automatically to a market or exchange center.

You can set your specifications and rules, and allow the program to monitor the market in order to find opportunities to buy and sell according to these specifications. This allows trading that is often fast-paced but profitable and even enjoyable to take part in. These systems can even be used for automated stock trading as they are often flexible in terms of their uses.

What To Look For

When you go to purchase or sign up for the software, there are a few things you should look out for and try to ensure are present before you commit to anything. The best ATS will not usually require you to download it in order for you to use it, often you will be able to get full use of it from your browser.

You can even set up binary robots (one of which I will review here) that are compatible with a number of brokers for quick execution. Plus, they are perfect for both experts and beginners. You should also have complete control over what you do on the software and the trades you decide to make. Always check the reviews and thoroughly research the company before you go on to trade with them.

On a final note with regards to what you should be looking for from ATS, often the best ones are free to set up, have efficient trade copier, and also have high win rates – so you know they are likely to generate a profit for you. Here are a few reviews for some of the more reliable automated trading software companies on the market, as well as one of the binary robots that is currently popular.

Just remember to always carefully research a company before committing to them, as the market has left itself open to some scammers.

Best Automated Software Review Table

So if you are looking for the best automated trading software, these reviews will set you on the path to learning everything you need to know to find the best.

TradeSpoon Automated Software
  • Less risk to your money
  • Can be used worldwide
  • You have the opportunity to test
  • Excellent Range of sources

  • Can be difficult to initially set up

Price variable (free for university students)

​This option is user friendly and easy to use although the price is pretty variable it still has all the necessary features needed with less risk of losing any money.

Etna Automatic Trading Software
  • Reliable and well known as have won awards
  • Many data feeds and text alerts
  • You’re able to view charts in real time
  • Wide range of additional features available
  • Multi-language
  • It has to be installed and downloaded to use,
  • the system itself is not massively user friendly due to its fixation on corporate customers.

Free trial – with a £25 bonus – then prices are variable monthly

It’s quick and user friendly when finding your way around. It has also won an award which gives you the confidence in your service.

eSignal Automated Trading Software
  • award winning service
  • online trading platform includes handy tools
  • technical analysis tool
  • detailed drawing tools
  • good software and incredibly reliable
  • costs a lot of money each month
  • is not fully automated

This award winning service has a great online trading platform that includes a lot of handy tools. although it is not fully automated there is detailed drawing tools and analysis tools to give you the best results.

Option Robot Automated Software
  • not just software but a binary robot too
  • can use with minimal experience or effort
  • three available systems
  • customer care is fab
  • great for new or experimental traders
  • free so minimal risk
  • was only released this year so not loads of feedback
  • only has one type of assets, currency pairs

This software has a lot of potential both as an ATS and a binary robot. While risking it by signing up is not for everyone, the process is at least free so there is minimal risk.

TradeSpoon Automated Trading Software

This is one of the most well-known trading software platforms out there. It has a great interface and offers a lot of features you would need as well as support for traders worldwide. It is well aware that every trader has different needs, and offers users the opportunity to paper-test ideas before venturing into the open market.

This way, there is less risk with regards to your money. It lets you build up some confidence and better predict which trades will make money.

It’s a great automated stock system, and works great as a futures automated system, and works with Forex too.

It provides an excellent range of active sources and real-time market indices. On top of this, it is incredibly user friendly and easy to use – making the process and general navigation much easier for you. It has a 90 day trial for you to test it out and see if you enjoy using the ATS.

One of the great features of TradeSpoon is that it can be used anywhere in the world as long as you have an internet connection. Plus, because they are there to help you as a trader with data accuracy, you are still able to make profits even if the internet slows or lags. In addition to this, you have the opportunity to test strategies across all market types before you go into them seriously.

Prices for this software are very competitive, which help you manage your costs as well. Overall, it’s a great piece of software and has mostly positive reviews from those who use it as well as from critics.

Etna Automatic Trading Software

For over ten years, Etna has been operating on an international scale. They are pioneers in the creation of custom trading software for a range of assets, particularly Forex and binary options. The main indication of Etna’s reliability and success are the fact that they have won a number of awards for their excellent software and services, including Best Broker for Automated in Barron’s Magazine.

Their trading platform facilitates high-performance strategies and also allows for you to make use of their platform for algorithmic trading. It has an incredibly user-friendly interface, so you aren’t left feeling confused while you find your way around.

The ATS also features superb connectivity to several execution venues, integration with a variety of market data feeds, and status alerts via email and SMS.

Etna is also known for excellence in custom software for options trading. This means that after you log in, you are able to view charts in real time for Forex or binary options. Plus, there is a wide range of additional features available to the trader. Some of these include things like a customizable watchlist, notifications, alerts, a history and intraday charting, in addition to real-time market data and streaming.

A stock trading system has also been added to their database, allowing you to trade stocks and mutual funds. The website incorporates real-time streaming of quotes and news, as well as a multi-language user interface for international use.

The only possible downsides to this fantastic software are that it has to be installed and downloaded to use, and the system itself is not too user-friendly due to its fixation on corporate customers. However, due to its reliability and reputation, it is unlikely that downloading this ATS would pose any risks.

eSignal Automated Trading Software

Like Etna, this is an award-winning ATS and is held in high regard. It is filled with custom technology in order to cater to its customers, and the online trading platform offers several handy tools. These include charting tools, streaming stock quotes, and access to brokers.

Over the years, and even recently, they have massively improved their functionality. The software can be used to create custom spread and pairs using their sophisticated automated trading better and detailed calculation tools. Plus, the software includes hundreds of technical analysis indicators that can be used worldwide. In addition to that, there are detailed drawing tools for the creation of simple or complex strategies that can be saved and revisited.

It’s a good software and incredibly reliable, but it does have a few disadvantages that the others do not. For one, it does cost quite a bit of money to use – $295 per month to be precise. If you are just starting out and new in the field, then this is not the system for you. Plus, it is not fully automated and does require tools to use, making it more complex. It’s definitely software for those who are far more experienced.

Option Robot Automated Trading Software

This interesting software is not just an ATS but also a binary robot. Designed by experienced traders, you can get the most out of automated options trading with minimal effort or experience. The software is web based as well, so there is no need for you to download it in order to get started. Despite only being released this year; it is vastly growing in popularity all over the world.

It has a wide range of features, including automated stock trading, and has a lot to offer in terms of brokers. It has created a partnership with a large number of leading brokers to build a strong and trustworthy relationship with you. Before you start you will be required to pick a broker, but it’s easy enough to research on them beforehand.

They have three trading systems for traders with different levels of experience. Plus, their customer care is absolutely superb. The software itself is free, and there are no false promises

Instead, it focuses on how you can best utilize the software. It also offers a lot of information on how it works and how you can customize it, so it’s easier for you to get your head around it.

However, there are a few downsides to this innovative new software. The first is, of course, that the software does not currently have a track record. It’s more of a risk than the other ATS listed here as it was only released this year and so does not yet have a firm base in the world.

Currently, it also only has one type of asset, which are currency pairs. However, it has been reported that they are working on including things like commodities, indices, and stocks. This is great for those who like to trade in multiple currency types.

Only new accounts are allowed as well. So once you have signed up and picked your broker, you must create an entirely new account. However, it is great for new or experimental traders. Perhaps the only really concerning downside is the fact that there is no information about the developers anywhere on the website, not even their names. This really can raise suspicion among some people.

This software has a lot of potential both as an ATS and a binary robot. While signing up is not for everyone, the process is at least free so there is minimal risk. However, it is certainly one to watch as time goes by and it builds a stronger reputation for itself. Once it has a larger number of reviews, and perhaps when it is available outside of Europe as well, it might be worth taking a look at if you don’t want to risk it right now.

To Conclude

Automated trading software can be a great investment as well as a great deal of fun. They can help you earn a little extra income each month (and for some a whole lot more than that). There are definitely risks when you start to trade, as there is with all investments of this nature, but there are certain risks you can try to avoid.

Always remember to research a company very thoroughly first and never be afraid to call them to ask questions. With a large number of scams online (especially Brit Method and Aussie Method) you should always be cautious signing up to ATS websites – especially if they sound too good to be true.

The automated trading software mentioned here is generally reliable and trustworthy, and certainly worth looking into if you are wishing to start trading.

Many of these companies have been around for a while, and have established a client base and accumulated some fantastic reviews online. Hopefully, you will find the perfect ATS for you here, and always remember that there is nothing wrong with calling them up and having a chat before you sign up.

Editor’s Note

Even with all that automation, you will need some human insight. We suggest subscribing to updates from the most successful traders in the business. John Thomas of Diary of a Mad Hedge Fund Trader is one such resource, and he offers trade alerts on the stocks he actually buys. Subscribe here .

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