I hate manual trading.
It held me back for months.
So over the past 5 years, I have become a fully algorithmic trader.
Here are 7 benefits of automating your trading:
It held me back for months.
So over the past 5 years, I have become a fully algorithmic trader.
Here are 7 benefits of automating your trading:
Context:
Manual trading can work and does have its pros,
But for many, including myself, it is very difficult to execute consistently.
This challenge was a key reason for my long journey to profitability.
Hereβs why you might want to consider automation instead.
Manual trading can work and does have its pros,
But for many, including myself, it is very difficult to execute consistently.
This challenge was a key reason for my long journey to profitability.
Hereβs why you might want to consider automation instead.
1. Ability to execute complex strategies.
Algorithms can handle intricate trading strategies that involve multiple conditions, time-sensitive actions, or simultaneous execution across various markets.
These often can't be done by a human as consistently.
Algorithms can handle intricate trading strategies that involve multiple conditions, time-sensitive actions, or simultaneous execution across various markets.
These often can't be done by a human as consistently.
2. Time-saving.
Automating the execution process,
Frees up your time for strategy development, research, and other activities that drive progress beyond executing individual trades.
It is an added pro if you don't enjoy executing and can focus on something else.
Automating the execution process,
Frees up your time for strategy development, research, and other activities that drive progress beyond executing individual trades.
It is an added pro if you don't enjoy executing and can focus on something else.
3. Best price execution.
Automated strategies can scan the market order routes and locate routes in milliseconds,
Allowing you to often secure prices a human could never achieve.
This can cascade into lowering costs such as commissions and locates.
Automated strategies can scan the market order routes and locate routes in milliseconds,
Allowing you to often secure prices a human could never achieve.
This can cascade into lowering costs such as commissions and locates.
If you want help to automate your strategy,
Visit the link in my bio to work with me and my team.
Visit the link in my bio to work with me and my team.
4. Diversification.
Managing multiple strategies manually is incredibly challenging.
One of the major benefits of automation is the ability to implement uncorrelated strategies with no reduction in accuracy.
This can lead to more stable returns by reducing risk.
Managing multiple strategies manually is incredibly challenging.
One of the major benefits of automation is the ability to implement uncorrelated strategies with no reduction in accuracy.
This can lead to more stable returns by reducing risk.
5. Elimination of emotional influence on trades.
While I won't claim automation "removes all emotion," it does eliminate feelings from individual trades, reducing human error in execution and risk management.
Nevertheless, emotion still exist, managing the overall portfolio.
While I won't claim automation "removes all emotion," it does eliminate feelings from individual trades, reducing human error in execution and risk management.
Nevertheless, emotion still exist, managing the overall portfolio.
6. Mental capital.
Unlike humans, automated strategies don't deviate from the plan due to fatigue, boredom, or overconfidence.
This consistency is powerful, as human performance declines over time, leading to less calculated decisions.
Automation eliminates this issue.
Unlike humans, automated strategies don't deviate from the plan due to fatigue, boredom, or overconfidence.
This consistency is powerful, as human performance declines over time, leading to less calculated decisions.
Automation eliminates this issue.
7. Backtesting accuracy.
Backtesting is essential for developing strategies, whether manual or automated,
But manual execution can deviate from backtested results, automated systems execute trades precisely as tested.
This keeps consistency between historical and live.
Backtesting is essential for developing strategies, whether manual or automated,
But manual execution can deviate from backtested results, automated systems execute trades precisely as tested.
This keeps consistency between historical and live.
Keep in mind this is all from my experience and talking to other algorithmic traders, always do what works best for you.
If you find this type of content valuable & want more every week:
1. Follow me @GoshawkTrades for more.
2. Jump to the top & retweet.
If you find this type of content valuable & want more every week:
1. Follow me @GoshawkTrades for more.
2. Jump to the top & retweet.
And If you want help to automate or backtest your strategy,
Book a call with me below:
unbiasedtrading.info
Book a call with me below:
unbiasedtrading.info
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