Trading robots: how can you profit?

 

In the last decade, brokers have been largely replaced on the world's stock exchanges by so-called "trading robots" - computer programs that specialize in stock trading. What kind of "beast" is a trading robot or stock exchange robot?

 

"Trading robot" is a program that partially or completely replaces a human when working on the stock exchange, and the robot can be controlled by the trader (for example, the trader himself decides to open/close a position) or work according to a pre-designed program.

 

Robots that are sold independently on the stock exchange are nothing but specially designed programs. Based on mathematical algorithms, they can independently monitor the performance of various indices on the stock exchange and make buy or sell transactions based on the data received. The normal transaction volume of robots is several times higher than the number of transactions carried out by humans.

 

The task of trading programs is not only to help traders in their normal work. Their "super task" is to implement trading strategies that are difficult or impossible to do manually by hand. In essence, a stock trading robot is a predefined algorithm of final transactions.

 

Specialists usually divide stock trading robots into three groups - trend (directive or direction), counter-trend and arbitrage. They correspond to different types of trading strategies.

 

The usual task of a trend robot is to catch the tendency for quotes to rise or fall as early as possible and open a position. It should then "sense" the change in trend in time and have time to correct the profit (i.e. sell the stock or currency). Counter-model robots try to catch all price pullbacks, they work especially well in a flat market. In turn, an arbitrage robot should profit by detecting price shifts for identical or closely related assets in different markets.

 

Robots can also be divided into indicator robots (use indicators as signals to open and close trades) and candlestick robots (use combinations of candlestick models as signals to open and close trades).

 

Trading algorithms

 

Specialists say: the main thing is to choose an effective trading strategy". Today, according to various estimates, robot programs conduct from 30% to 50% of transactions on stock, futures and currency markets of the planet. Mechanical trading systems are considered to be one of the most effective and reliable trading methods. First of all, automated trading helps traders in selling large blocks of securities. The bid is broken down into several small ones, and they are gradually brought to the exchange according to a certain algorithm.

 

On normal trading days, the robot makes decisions automatically and executes transactions without letting subjective evaluation take over objective technical calculation. It is believed that robots are more effective in short-term intraday trading, which is usually based on technical analysis indicators. The absence of emotions also helps when it comes to locking in losses - selling assets that are falling in price.

 

If the mechanism of operations on this particular exchange can be algorithmized, and the trader himself is not able (or does not want) to personally process the entire amount of data, it makes sense to transfer trading to a robot.

 

The advantages of trading robots can be safely attributed to:

• Complete absence of emotions - a robot is not a human and cannot cry.
• Reaction speed - from the signal to open (close) a position to entering a request takes a fraction of seconds.
• Full adherence to the trading idea without any deviations.
• The trading robot does not know fatigue and starts working immediately after switching on.
• Speed of processing incoming data. A robot can monitor data on hundreds of instruments at a time.
• Robots can trade hundreds of algorithms simultaneously, which an ordinary person will never be able to do.
• Mandatory connection of Silver insurance pole
• Connection of trading robot without active trading on day 3

 

Disadvantages include:

• Risk of error in the program code. This error is eliminated by testing.
• Predominant use of technical analysis.
• Lack of fundamental analysis.
• If the robot works well in a trending market, and at some point the market becomes more unstable or reverses, the robot will incur losses

 

There are a lot of pluses and they more than cover a small number of minuses. Each trader has the right to decide on the installation of a trading robot on his terminal. You can buy a ready-made robot, but the prices will be considerable. And you can learn to create them yourself, especially it is not as difficult as it seems from the outside, and even traders without programming knowledge will be able to do it themselves!

 

Choosing a robot trading strategy

 

Finding the right robot is not an easy task! Let's take a look at some basic information to consider when comparing the different trading robots you are interested in:

 

1. Test (BOT) from 1,000 euros with a profit of 10%/month.

Currency market

• EUR/USD.

• GBP/USD.

• USD/JPY.

• USD/CHF.

• AUD/USD.

• USD/CAD.

• NZD/USD.

 

2. Basic from 2500 EUR with profit up to 15%/month.

• Currency market

• Commodities: Silver

 

3. Conservative trading strategy from 5 000 EUR with profit up to 20%/month.

• Currency market

• Commodities: WTI

• Metals: Gold

 

4. Weighted average trading strategy from 10 000 EUR with profit up to 30%/month.

• Commodities: WTI / Brent

• Metals: Silver / Gold

• Index: SPX

• NG

 

5. Fully diversified, arbitrage, trading strategy venture capital investment from €25,000 with returns of up to 38% per month.

• Commodity market: WTI/Brent

• NG

• Metals: Silver / Gold

• Index: SPX / CAC 40

• Stocks

• Cryptocurrency