Trading is a process that provides information about buying and selling products. Automated trading is a process that helps traders programs their trading automatically with the help of a computer. Automated trading is based on a specific rule that manages the
overall system. Automated trading helps you to work on multiple trades in a
short period. The computer only needs some pre-set algorithms and strategies
for trading in different fields.

The working methods of automated trading

First of all, you have to choose a specific trading platform for trading. Then set all your required parameters. You can set your trading strategy with your experience, or you can add the pre-existing algorithm in it which is suitable for your trading. The
most important factors that need while trading is the duration of trading, the
price of entering and exiting, and the quantity of the product.

The strategy should be set according to the recent market price. Providing the correct parameters and information to the computer trading software will be beneficial to trade faster and effectively.

The software uses in automated trading.

Automated trading needs specialized computer algorithms to monitor the market condition and to compare them. Software is helping to put the correct algorithm and suitable entry and exit points, which will guide the computer to get quick and accurate trading in a stipulated
period. While choosing the software, you should keep in mind that it has
specific characteristics like different software that will be used to access
specific markets or products with preferred security.

Benefits of automated trading

Auto trading is a good platform that fits your strategy and schedule and performs trading at any time. It decreases the need for human emotion and strategy plan as it has a pre-set plan according to the strategy. It provides some new chances to explore a new
field and analyze a wide range of trades. It reduces time consumption and
provides an accurate result.

Advantages of automated trading

There are a lot of advantages of using a trading platform guided by computer technology.

● Automated trading will reduce the emotion and make it easy to stick to the plan. It provides trades according to the rules and strategy, so there is no more doubt about the result. It also helps the traders not to waste too much time in overtrading.

● This provides the trader with backtesting the history of market price and gathers the same sets of rules.

● Automated trading provides a discipline in trading.

● It also provides diversify trading.

Disadvantages of Automated trading

● Automated trading is all based on a computer, which is a machine. Any mechanical failure, fault in software programming is the biggest drawback of this trading.

● If the information or rules are put incorrectly, it will give the wrong result.

● It can also over-optimize the information.

Although automated trading is an easy option to trade with less time, there are also some facts like technology failure and other small mistakes which will make a bad outcome.