Many people purchase automated day trading software (EAs) since they are trapped by the promises of easy money EAs can provide. Basically EAs are automated programs that allow your computer to run your trade in your account.
EAs promise many benefits, indeed, but you have to also remember, there are also drawbacks that come along them. To gain huge money, you have to learn to automate your strategies, first. That will take a longer time than learning to trade manually.
Defining Automated Trading Software
There are various names of automated trading software, they are Expert Advisors (EAs), program trading, automated trading, robotic trading, or black-box trading.
It is basically a program that trades for you on your computer. It takes trades based on parameters that you earlier set. Thus, to create a good program, you need extensive trading knowledge.
In order for EAs can run trades, traders need to make sure that they use simple trading strategies that can be broken down into a series of rules. If traders use complex trading strategies, their EAs will get difficulties to run the program.
For traders with minimum or no trading and programming skills, they can just buy this trading software. But, this software will need updates in the future. That updates depends on the changes happen in the market.
Without updates, these trading software will not be profitable. Thus, before you decide to buy these software you need to consider the way to update it.
The Statistic of Successful Trading with Trading Software
Trading software, of course, will bring traders good returns. However, many traders who use this trading software do not see that returns. In fact, there is only less than 5 percent of people who can be successful traders with this software.
These successful traders constantly watch the performance of their software. They do many adjustments the market shows changes and do several interventions whenever it is necessary.
Just like manual traders, these successful robotic traders put in some good works also to stay profitable. Thus, never believe in many EAs advertisements that say this software can make a profit by itself. Even when you buy an EA from successful traders, that does not directly make you become a successful robotic trader.
