By using specific software fully automated , without involving any person ‘s opinion , it is called automatic trading . Here we reveal the key factors of their functioning .
Basic operation of the trading
The specific software programs or trading contain a set of conditions that represent a specific financial investment strategy , either on exchanges or on other products: as the foreign exchange market or forex online .
Automated trading Philosophy
Although virtually requires no intervention of a professional trading this specific software does not work, far from random .
Basic guidelines .
Although each automated trading system is governed by different parameters , to have the same basic goal , to achieve maximum benefit in the financial markets , the basic guidelines are consistent :
Optimize and streamline operations to take advantage of upward trends and get quick profits .
Minimizing losses including systems that allow exit a particular market is not profitable in the shortest time possible.
Upholding true to its philosophy and governed by a pre – set parameters ,
trading system bases its strategy on a number of rules and mathematical operations.
Mathematical parameter values .
The mathematical parameters based on automated trading depend , also, on a number of factors: historical market behavior , time zones of operation, system characteristics , etc .
Benefits of the ups and downs of the stock .
These complex mathematical parameters get their users to achieve benefits not only the rising edge of the bag, but also of its descent.
Advantages and disadvantages.
These systems have the major advantage of eliminating the subjectivity of human emotions in financial decision making , in addition to introducing the logic and possibilities of computing.
The programming must be perfect .
The main drawback of this system is that if the software programming is not perfect , can lead to substantial losses in very short periods of time.