An automated trading strategy is a group of specific rules that determine the conditions and timing in which to buy or sell a given commodity or equity. Trading strategies are usually based on complex software using indicators (moving average, relative strength etc.) which create the strategy’s rules.
What are the advantages of using trading strategies?
- Removing the Influences of Human Emotion – It is a well known fact that traders are frequently influenced by emotions such as fear and excitement which may cause them to stray away from their original trading plan. An automated strategy can remove these human variables from the process of executing a system’s entry or exit recommendations.
- While it is true that human emotion is removed from system trades, be aware that humans developed the systems and there is no guarantee that these systems will produce a profit, or for that matter that these systems will not produce a loss in your trading account.
- Accuracy of execution – the computer is not affected by fatigue or other human vulnerabilities which may cause mistakes such as pressing the wrong button.
- High speed execution – a computer can monitor and trade multiple markets simultaneously and react much faster than a human trader.
- Hands-free execution – once the trading strategy is running, the trader (subscriber) does not have to be tied-up to the computer. The server is the one handling the strategy management and execution.
- Improved decision-making – trading strategies can quickly and easily handle complicated calculations required for decision making processes, whereas a human trader may encounter difficulties.
Please contact an AGN broker for available products. 312-267-2936
PLEASE BE ADVISED THAT TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE ARE UNIQUE RISKS ASSOCIATED WITH UTILIZING THE INTERNET-BASED ORDER EXECUTION SYSTEMS INCLUDING, BUT NOT LIMITED TO, THE FAILURE OF HARDWARE, SOFTWARE AND INTERNET CONNECTION. AGN FUTURES DOES NOT CONTROL SIGNAL POWER, ITS RECEPTIONS OR ROUTING VIA INTERNET, CONFIGURATION OF YOUR EQUIPMENT OR RELIABILITY OF ITS CONNECTION. AGN FUTURES IS NOT RESPONSIBLE FOR COMMUNICATION FAILURES, DISTORTIONS OR DELAYS WHEN TRADING VIA THE INTERNET.