Working with global markets has become more and more popular recently, and a unique technical innovation unexpectedly came to the fore - robots for trading on the stock exchange. This sphere literally attracts people to itself by a magnet. And this is not surprising, since really big money is spinning here. However, not all traders know that it is possible to start making money on the exchange even in the absence of a huge initial capital. The main thing is to choose the right strategy and get an effective automatic assistant. This is what this article will discuss.
Today, online trading with turnkey exchange robots has become a real highly profitable business. But do not rush to spend a lot of money (and all this is very expensive, by the way) for a beautifully advertised program. First, you need to understand the essence of such an application in order to choose the most suitable option. After all, the promise of grandiose earnings always coexists with certain risks. However, I still believe that automation of the trader's work is the main key to increasing income.
If you work solely on your own and manually execute each trade, a lot of time is spent analyzing the market. Automatic trading takes care of all these concerns. You don't have to learn the basics of stock trading. But the effectiveness of each transaction will increase markedly, since the robot acts much faster and more accurately than a person, without relying on intuition or speculation.
If you decide to get a ready-made assistant, then there is no need to even learn programming languages. But any innovation has both advantages and a number of disadvantages. I'll introduce you to them below. By the way, if there is no desire or opportunity to spend money on the paid version of the robot, use an automatic expert with free access. A great example of such a program is Abi robot... It has the full range of functions that a trader may need, and is fully adaptable to its owner.
How an exchange robot works
The program is designed to fully automate all transactions. This application is based on a trading algorithm. It is he who determines the sequence and nature of all actions. automated trading robot... The assistant decides for himself what, when and in what quantity to buy, and then at what price to sell. He conducts a complete analysis of the market and, based on the data obtained, highlights the significant factors and those that should not be taken into account.
If we talk about the manual labor of an investor, then in this case a person needs specific skills and knowledge. After all, a trader has to constantly keep in mind and compare a large amount of information with each other: quotes, statistics, indicators of corporate reporting, history and macroeconomic situation of different regions. Add to this a few assets, each of which develops independently. In short, the work is not easy.
Almost all robots for trading on the stock exchange replace a living person and make his life much easier. Now there is no need to fill your head with a huge amount of information, in which it is extremely easy to get confused and then make an irreparable mistake. The automatic mode allows the program to simultaneously study world economic news, monitor constantly changing quotation charts, and monitor the reporting of companies you are interested in. Moreover, the robot almost instantly collects all the received data into a single picture and decides on the transaction.
In order for the program to always be relevant and to correctly analyze the received input data, it requires updates. The market does not stand still and is constantly changing. If the robot turns out to be outdated, it simply will not be able to make the right decision, which will lead to losses. The most effective are programs that were written by experienced specialists and are constantly monitored by their creators. Such assistants have a long-term prospect of making money in the market.
A few words about the safety and popularity of trading software
Automatic trading is now more relevant than ever. According to the Central Bank of the Russian Federation, today, about half of all transactions made on the Moscow Exchange are the result of the work of mechanical assistants. As for foreign countries, robots have almost completely replaced living people there. Abroad, about 80% of all market transactions are performed by automated trading software. According to Deloitte, in the near 2025, assets totaling $ 16 trillion will be transferred under the control of mechanical assistants.
I would like to note that such volumes of transactions are carried out precisely by professional programs that are created and then supported by leading experts in the IT industry, as well as practicing investors. When such a robot plays on the stock exchange, the probability of making a mistake is negligible. But most of the available versions that can be found on the Internet are not so safe for traders. This is especially true for beginners who are not yet able to independently assess all the risks and monitor the work of their assistant. However, among them you can find quite good options for which no one will have to pay extra. One of the safest robots is Abi's assistant, which has already been checked by many exchange players.
The rest of the programs are most often a raw canvas, demos and initial developments that have not yet been tested in a live market. If you decide to order the creation of a turnkey assistant based on your own needs, then such software will most likely have an emphasis on fault tolerance and functioning in case of sudden jumps in the value of assets.
Experts with long-term support
When choosing an automatic assistant, be sure to pay attention to the availability of service from its creator. This is a particularly important point. Some robots can work for a very long time and bring good profits on a consistent basis. But many applications are not as effective.
To acquire a truly profitable trading software, you need to soberly assess its capabilities. It is unlikely that for a penny you can buy a really high-quality assistant. More often than not, there will be more beautiful promises than real earnings. But with constant support from the creator of the program, there is a chance to always remain at the peak of its profitability. But I recommend that you learn one more important rule: even if the developer of a trading robot has become successful, this is not a guarantee of the success of his client.
Traders who get good results from the actions of their assistant always know how to adjust it in accordance with changes in the market. And also - they constantly monitor the quality of the software. Yes, the creator of the program knows exactly how to interfere with its functionality and what should be changed in this or that case. But if the developer does not teach this to the trader, does not provide constant system updates and does not continuously monitor the situation on the exchange, it is better not to buy such a product.
Which operating mode of the robot to choose
As I wrote above, the manual labor of any practicing trader is a very painstaking and time-consuming process. Algo trading allows you to significantly simplify this lesson, as well as to allocate hours for relaxation and self-development of the investor. But do not assume that by turning on the offline mode in the program, you may not think about the exchange. Free robots, no matter how effective they are, still need constant improvements to the algorithm. Otherwise, the very first unexpected event that occurs within the market will knock you out of the rut and negatively affect your account balance. Regularly view world economic and political news, monitor the situation on the stock exchange. For a while, the robot will probably be able to cope on its own. But experienced traders still recommend choosing partial workflow automation. Note that this advice is relevant only if you already have a good understanding of the market trading system. Who is full automation suitable for?
Man is an extremely emotional creature. It is important to remember that any intervention in the algorithm that is not required is likely to work against the investor. The assistant does not always need to manually change the direction, since the trader may well be guided solely by excitement and emotional stress. And this, as practice shows, does not bring anything good. Do not close the trade manually if the previous results of the EA were positive. In this case, the fully automatic trading mode is more suitable for you, so as not to accidentally reset the account with your own hands. Such emotional actions on the part of the trader literally destroy the current algorithms of the automatic assistant.
What strategies are used in the work of trading experts
This area is developing very actively. Today, there are already several dozen different variants of trading strategies that demonstrate good results in one situation or another. I want to focus on three main ones:
- Mesh. In this case, the system creates pending orders at a certain percentage above or below the market price of the asset. A kind of "grid" is formed, which gave the name to the algorithm under consideration. The result can be seen with strong volatility. When a sideways trend forms, this strategy becomes unprofitable.
- Scalping. In this case, we are talking about trading in the mode of short time periods. Minute and hourly segments are taken into account. The algorithm targets strong price spikes. For the modern profit taking and possible minus, the stop loss and take profit limit bars are used. Bollinger bands became the basis of this strategy.
- Trending technique. This is a long-term job. The robot acquires an asset at a rising value and sells when the price declines. The strategy is also effective in the event of a “reversal” of quotes. Here, the profitability of the program strongly depends on the number of indicators it uses in its work.
These are only basic algorithms that have already proven themselves in practice. It is necessary to consider the specific situation and the market in order to choose the right strategy that generates income. One well-designed assistant is usually equipped with several trading methods at once.
What are the advantages of a robot for an exchange
In this article, I have already touched upon the advantages of automatic programs. Let's take a closer look. Here is a list of the main advantages of robots:
- Removing stress and emotional stress from a trader. Elimination of corresponding errors due to the manifestation of excitement.
- Much faster response. When a reasonable signal appears to enter or exit the market, the assistant does not hesitate, but immediately begins to act. Sometimes hundredths of a second separate an investor from a big win, since in a high volatility mode the situation changes in an instant. In this case, the robot is of great benefit.
- Automated software controls several markets at once. Consequently, the program works with a large number of assets and has a lot of trading advantages over a human.
- The creation of a robot helps to simplify the strategy to a basic level at which it is easy to change. This allows you to understand the very essence of the algorithm and take a deeper look at the technique as a whole.
- Full automation is a great way to test the viability of a strategy. Manual trading is characterized by a large number of variables, which blur the picture of the result.
The robot must be tested in real markets to identify its strengths and weaknesses. Pay attention to current data and compare it with historical data. This will help to adjust the strategy and make it relevant for specific exchange situations.
Disadvantages of trading robots
I can't help but add at least one fly in the ointment to this barrel of honey. I have already voiced some of the cons. Here are a few more disadvantages of automatic assistants:
- For the program to function correctly and efficiently, it takes a lot of effort on the part of its owner.
- In some cases, human intervention may be necessary. This suggests a partial automation of the trading process. For example, a robot for an exchange must be adjusted in the settings if the volatility changes in any direction.
- The need for regular system updates. Yes, the algorithm may well prove to be effective over a long period of time. Sooner or later, it will still need to be updated. Otherwise, at some point, the assistant's reaction will be irrelevant, and your account will suffer.
Robots give us a great opportunity to control a large number of markets. They have an instant response and are very accurate with orders. Try to optimize your work, and you will find out that money can be turned around much more efficiently.