Automated trading tools allow traders to build their strategy in a computer-based system which will automatically execute trades based on predetermined market conditions. There are many advantages to automating your trades versus manual trade execution including the removal of emotion, time savings, and the potential to trade multiple markets simultaneously.
Given the programmable nature of automated trading, emotions such as fear, greed, etc. are removed from trade execution. By limiting the impact of these emotions, your trades are executed solely based on technical analysis and your trading strategy.
The amount of time spent watching the market and monitoring positions when manually executing your trades can add up. Automating trade execution through your online trading platform can help remove much of this market monitoring. With the resulting time savings, you have the opportunity to explore other markets and backtest potential trade ideas.
Trade More Than One Market Simultaneously
Trying to manually trade multiple strategies across different markets poses a number of logistical challenges. Trade automation allows you to diversify your market exposure through the execution of multiple trading strategies simultaneously.
NinjaTrader’s Advanced Trade Management (ATM) allows traders to automatically submit orders and set trailing stops. Watch the video below for an introduction on how to setup ATM strategies using NinjaTrader:
Remember past performance is not indicative of future results and you should always trade within your risk tolerance levels.