What is Autotrading?
Autotrading and copy trading can be an excellent way to enter a new market without needing to develop a deep understanding of the factors that move the underlying market. With autotrading a profitable trading strategy can be implemented quickly and easily.
You probably already understand all too well how difficult it can be to create a profitable trading strategy from scratch. The process of testing and refining any trading strategy is very long, and must be constantly implemented to ensure the trading strategy is robust and remains relevant to changing market conditions.
If you know someone who is willing to do all this work to create a successful trading strategy and then allow you to copy their own strategy, why wouldn’t you do so?
Autotrading allows you to do just this. You choose the successful traders you’d like to follow and the system places trades based on their systems and strategies. Rather than risk your own capital in long, drawn out testing for your own strategy, you can use autotrading to follow successful traders who have a proven track record with the market, and have developed tried-and-tested trading strategies.
Autotrading removes much of the stress associated with trading. It also helps you avoid the need to sit and watch markets for hours to find trading opportunities.
Autotrading systems are particularly useful for beginning traders, but experienced traders can find them useful as well. Often the more experienced traders will use autotrading to supplement their own trading strategies, or to diversify into new markets and asset classes.
AvaTrade makes automated trading easier by providing a connection to three of the top copy trading and signal services available. We provide you with all the information you need regarding each signal provider to help you select the proper strategy and trader to follow.
Automated trading platforms
DupliTrade is a MT4 compatible platform which allows British traders to automatically follow experienced traders’ signals and strategies in real time. Its user-friendly interface makes it easy to build and manage a trading portfolio while gaining valuable insights on successful trading strategies. The DupliTrade platform was created with the goal of making automated trading as simple as possible. With DupliTrade it’s possible to automate your trading based on the activity of experienced traders, and also gain an improved understanding of the techniques needed to create successful trading strategies yourself. One of the distinct benefits of working with DupliTrade is that they choose only the best strategy providers. Each of the traders available to copy has years of market experience, and a proven record of making successful trades with real money. The DupliTrade team employs a strict auditing process with each strategy provider, first to accept them onto the platform, and then on an ongoing basis to ensure they maintain suitable performance levels. Besides helping you increase your trading success, you’ll also find DupliTrade to be simple and easy to use. It was built so that even a person with no trading experience at all can understand how to use it. Yet it is also powerful enough to offer experienced traders value.
One of the most popular auto trading platforms used today. ZuluTrade converts the recommendations of experienced traders and automatically executes the trade in your AvaTrade UK account. Select which program or experts are best for you. ZuluTrade was created in response to the lack of a software platform that would allow for ranking and following the trading strategies of professional traders all around the world. Since its humble beginnings in 2007 the platform has grown to be a powerhouse in the trading industry, thanks to its ever-expanding list of features, and its outstanding choice of trading strategies that are available to follow along. Perhaps it is the wide range of available strategies that attracts so many to ZuluTrade. The most recent data indicates there are over 10,000 traders from 192 countries that are available to follow on the ZuluTrade platform. There’s a very good chance that whatever market or strategy you’re interested in, there’s a trader on ZuluTrade doing something similar that you can follow. Better yet, you can follow as many traders as you like. This diversification will help to lower the volatility of your automated trading, while still providing an opportunity to profit from the trades of others. It also allows you to change your trading strategy easily in the event that market conditions change.
MQL5 is fully integrated with MT4, so you can subscribe to signals from thousands of Australian and international providers directly from your trading platform. Traders can attempt to improve their own performance by following the trades of the successful members of the MQL5 community.
Why use Autotrading?
With autotrading you can create a wholly passive income stream. Significantly reduce the amount of time spent analysing and monitoring market movements.
Improve your trading performance by following the trades recommended by professionals. This gives you a greater chance for profitability, and the trades can be executed immediately in your AvaTrade UK account. Some of these trades will even shield you from potential losses by including stop-loss levels. And the fact that autotrading works 24/7 makes it more effective compared with manually trading your own account.
Diversify into multiple asset classes. Autotrading is extremely versatile and can support all the major asset classes, including forex, stocks, commodities. If the market is available to trade on AvaTrade’s platform there’s a very good chance there’s a way to passively trade the market using autotrading. Plus you can trade new asset classes without any prior experience in the market or industry.
Create the perfect trading strategy by following the trades of successful traders. Rather than wait for months or years to develop your own successful trading strategy you can ride the coattails of those who’ve already created profitable strategies. And you can continue working on your own strategies to improve your profitability in the future.
Automated trading main FAQs
Does auto trading work?
Auto trading systems are not perfect, but when you consider that the majority of trading being conducted on major stock exchanges is reportedly auto trading it is easy to see that it clearly works when done properly. In fact, auto trading is nothing more than turning a trading system, the entry, exit and money management rules used to trade markets, into a programmed system rather than following it manually. Auto trading can even be considered superior to manual trading since it completely removes emotions from trading.
Is auto trading legal?
Auto trading in the currency markets, equity markets, commodity markets is all completely legal. There have been no regulations or laws passed in any country that prohibit auto trading (that we’re aware of). However, whether or not auto trading is allowed in an account is a decision made by the individual broker. Many allow auto trading, but some prohibit it for their clients. When you’re trading with AvaTrade UK you’re always free to use auto trading to enhance your trading and potential profits.
Is auto trading profitable?
There’s no trading method that’s inherently profitable, and that’s true for auto trading as well. It can be profitable if the rules that are used to program the system are accurate, but auto trading can also be a quick method to empty a trading account. In addition, any automated trading system needs to be monitored at all times. A change in the market dynamics has been known to change a successful and profitable auto trading system into a losing, money draining beast. So while auto trading might seem like an easy way to profit, the truth is there’s no easy way to profit from markets, although auto trading can make it easy to ensure you don’t miss any trades.