Automated trading systems represent a beneficial way to maximize profits and increase discipline while minimizing the risk factors and the time spent. These platforms are digitized algorithmic systems that assist traders by executing uniformly set up orders and rules of buying and selling according to the markets’ fluctuating conditions. Although they are not entirely flawless, these trading systems are an excellent way to generate custom approaches and strategies that will provide traders with an advantage in the trading process.
The concept was initially brought up decades ago. However, over the years, automated trading grew and developed proportionally with the technological development following this era, making it a preferred choice for many traders, including cryptocurrency enthusiasts.
Nowadays, first-time traders, as well as more experienced investors, are using these automated systems as a way to increase their profits without wasting too much time, and by eliminating the emotion factor that comes naturally with trading.
In other words, automated trading is designed to think and act on your behalf, without any spontaneous and often reckless tendencies that could otherwise happen.
Without going further in their pros and cons, we want to review another aspect of automated trading systems – their best features that ease the use and help traders get better results and increased profits.
Key Features of Automated Trading
Automated trading is feasible thanks to the development of a particular software and algorithms that allow the user to make decisions and place orders which the computer will execute when the time is right, and all the parameters are met.
It’s safe to say that some key features facilitate automated trading. Different platforms offer distinctive solutions. However, some of the most significant aspects of automated trading are the following:
Real-Time Market Data Tracking
Automated trading presents you with a real-time market and company data. That is one of the most appreciated features with algorithm trading, as it allows you an overview of the market and its availability. Through this, all the needed information will be a click away from you and will serve as an indicator of whether you should invest in something or wait for the right time to come.
Ability to Configure and Customize Trades
A good automated platform facilitates its users with a high rate of customizing and configuring the wanted parameters. That is the essence of automated trading, and the whole idea behind it revolves around the capacity to customize the orders for the system to track and execute. The options are not unlimited, but it’s an advantage if the automated system that you are using, offers you the chance to be easily configured and customized to your unique trading needs.
Building Your Own Software and Strategies
Building your automated software allows the versatility to customize your trading as much as needed. For that, however, traders require the proper coding knowledge on programming languages such as Python, C++, Java, etc. It will take time, effort, and a lot of knowledge and experience, but the end goal should be worth it. The feature is considered as an advantage when you switch from regular to automated trading, as it allows you to modify the trades in accordance to your unique needs, and experiment regularly.
Trading Without Programing
Contrary to the previous feature, some platforms provide much easier access to automated trading, by eliminating the coding process. For people who have a hard time coding or a complete lack of programming knowledge, platforms such as Superorder ease up the entire automated cryptocurrency trading process, while still providing the same service. Although they can be limited to some extent, with the right features, these crypto bot can help you in your trading.
In other words, with Superorder, crypto traders can utilize various trading features that will facilitate the entire process, including Trailing Stop (Trailing buys and sells) that can be used even on exchange platforms that don’t support this feature. Additionally, crypto traders will get portfolio trackers that allow them to check the performance of the digital assets they own, as well as pro charts from TradingView where traders can save and compare timeframes. Finally, with Superorder, traders can create their own strategies through the easy-to-use workspace that allows combining different orders.
Testing on Historical Data
The process is called backtesting, and it’s a feature that makes automated trading much easier, providing users with the opportunity to increase their profit while reducing the trading risk. What it does is accessing previous “historical” data on the strategy’s practicality and profitability, and explores your chances of winning or losing money. If the backtesting shows positive results, traders usually have more confidence in going forward and placing their parameters for the system to execute their orders.
Market Connectivity And Integration
One of the best things about automated trading is the opportunity to work across various trading markets, without spending too much time. The exchanges provide a data feed which is then processed by the software and presented to you on your platform.
Automated trading systems also allow integration with the trading interface, which means they are connected directly to an exchange.
Finally, most automated trading software platforms offer trial periods in which you can try and see whether their claims are true. In other words, you are able to explore the options and their features, before you decide on paying for their service. Keep in mind that while this is an excellent feature that makes automated trading even more desirable option, not every platform offers the free functionality trial version. Be careful not to fall victim to a scam, and opt for platforms with a trial period. An excellent example of this is Superorder’s free trial available for new users, which provides enough time for users to explore the fastest crypto trading platform for automated crypto trading.
There are many features that ease the process of automated trading, and these are just a few of the most common aspects. Depending on your preferences, there can be many variables included in the process, all with the purpose to help you facilitate the trading process, and make the best out of it.
Overall, automated trading has pros and cons, but it is certainly an amazing opportunity for traders all around the world to try and upgrade their techniques.