Automation seems to be making its way into most aspects of our lives. From gas pumps, to garage doors, and even voice-activated functionalities in smart homes, automation has proven its usefulness to people. The world of trading is no different, utilising automated features to their full potential is the key to successful modern trading.
Types of Automated Trading Features
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Automated Trading Tools / Algorithmic Trading Tools
Automated trading tools, also referred to as algorithmic trading tools, gives users the ability to set instructions and conditions for both trade entry points and trade closures. Using certain market criteria, you would program an automated trade. For example:
- Buy 120 shares of BP once the 30-day moving average exceeds its 300 day average (expecting a sharp rise)
- Every time the EUR/USD falls by 7 pips, increase the short position by 2 lots (expecting a dip)
Essentially, you’re setting up automated instructions according to different strategies. Whether you’re a scalp trader, a day trader, or use any of the other diverse strategies, automated/algorithmic trading tools can and will accommodate your needs.
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Crypto Trading Tools
Much like the traditional trading tools, there are also crypto trading tools at your disposal that automate transactions for you, based on the instructions that you set. The most common examples of automated crypto trading tools are trading bots.
As we know, the crypto market can be more volatile than most markets. This means things can turn very quickly, for the good or the bad.
Executing trades at the exact millisecond that you want to is just where automated crypto trading tools come in handy. It removes the risk of the trader being busy or asleep at crucial moments in the markets.
The life of a trader is anything but smooth sailing, and more often than not, emotions get involved. When you’re winning big, you might get carried away and keep your position open. If you’re losing, you might panic and close out of panic. These are natural human emotions.
However, they can be detrimental to trading. This is another positive that automated trading tools offer you. They only follow one cardinal rule: logic. They are programmed to execute exactly what you tell them to, incapable of being swayed by overwhelming emotion.
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Algorithmic Trading Platforms
Naturally, these trading tools are provided by certain types of software, more specifically, algorithmic trading platforms. The ideal platform needs to be able to provide:
- Access to as many markets as possible
- Details about companies
- Latency as close to 0 as possible
- Functionality and customization capabilities according to your specific demands
Solidifyre is an example of an algorithmic trading platform. Created by SolidusX, Solidifyre algorithm is a system for identifying trading opportunities on asset charts. The proprietary algorithm is more than just an indicator of recent market trends.
Solidifyre combines the knowledge of over 140 technical indicators with machine-learning-based fundamental analysis. Some of its main automated include:
- Trailing Stop Loss (TSL).
- Trailing Take-Profit (TTP).
- Take-Profit and Stop-Loss Orders (TP/SL).
Solidifyre also uses the four phases of the market cycle:
- Accumulation
- Markup
- Distribution
- Markdown
The Algorithmic Filters allow you to fine-tune the trading strategy you want to use with the Algorithmic Buy / Sell Signals. You can use these filters to optimise your trading strategy with SolidusX – the perfect balance between algorithms and human touch.
Conclusion
This article reviewed some of the most popular automated features to get the best trading opportunities. While manual trading can deliver results, automated trading is relatively seamless and promises excellent results unswayed by human emotions.
