What is Automated Trading?
Humanity has come a long way in the last couple of decades. Given the fact that thirty years ago almost all cinematic effects had to be acted out or carried out with props, the digitalization and automation of nearly anything in the present is a rather surprising turn-out.
Computers can handle nearly every operation without the need of a human being present in front of the screen. This rule has its exclusions but they only go to prove how far information technology has exceeded.
Every business sector applies automated functions and special apps as they save time and funds. The analysis used to be conducted entirely manually and took months. The compilation of vast databases of different kinds replaced this.
The financial industry is the one that implements digital technology the most. Users who have trading accounts with a particular online investment tool go on to confirm that it is much easier to engage in operations that give stable and consistent daily results.
Some even say that it is like child’s play when compared to the individual viewing of charts and statistics. The automated trading is done entirely by an auto-pilot feature. The end user gets to enjoy the favorable results but can do as little as read a book while the robot is accumulating earnings.
Automated trading is being heavily implemented into the working software of high-end banking institutions and investments firms. Prominent companies like ‘Goldman & Sachs’ employ a large number of people who deal only with the development of different trading apps. Their main purpose is to try and accurately assess the future movements of the asset price. One investment system that does this with a high accuracy ratio is The Brit Method.
Are Algorithmic Trading & Automated Trading the Same?
The textbook definition of automated investments states that they can be ‘any system that applies sophisticated technological means to create and send trading orders to a particular market or exchange’. This is exactly what The Brit Method by creator Jason Taylor does.
Every auto-pilot robot requires a programming algorithm in order to issue asset price forecasts. Which means that absolutely every investment app is Algo-trading in principle. The said computer codes may be directed at one specific market sector or target all four main ones (commodities, indices, currency pairs, and stocks).
The Function of Programming Algorithm
When the software developers design and write the codes, they are free to implement a strategy or investment technique of their choosing. Lots of trading systems, for example, focus on the Flock (Herd) Effect Principle.
The said issues predictions based on the group ‘behavior’ of a majority of people or market trend. Other popular ways to analyze and forecast the shifts in prices is by putting the different assets into distinct categories and assessing them separately.
Such is often applied when the matter comes to cryptocurrency exchanges. While they can be placed in a currency pair against a real-life one, they belong to a whole different sector of the financial industry.
Historical data analysis is also very common. This is the method implemented by The Brit Method System. Its algorithm features a vast database full of information about previous asset price movements and issues forecasts on the basis of their patterns.
Auto-Trading Allows Regular People to Generate Stable Results!
The emergence and popularization of automated trading solutions have made it possible for even absolute beginners to accumulate fine daily earnings on the Internet. It is not a surprise that so many people sign-up for them.
Algorithmic investments diminished the obstacles that stood before the end user that used to withhold him or her from operating freely on the digital financial markets.