When executing trades with an automated system, there are many added benefits, but that doesn't mean there are no risks involved. Many look to systems as a means to supplement their income while others intend it to be a full time stream of revenue, and unfortunately there are individuals who have been conditioned to think it is an option to make a lot of money quickly.
First let's debunk that theory; trading systems, especially automated are not designed to make you a millionaire overnight. The intention of the system is unknown without further explanation from the developer. Quality trading systems are developed for many reasons including long term growth, short term income or even a combination of both. Before investing your money, speak directly with the developer to ask what his or her intent was for building the machine to get a better understanding, and help you make an educated decision if it is beneficial to your style of trading. You may also consider asking the following questions:
Let's look at some of the pros and cons that may help you determine if automated trading is right for you. This choice may be the best decision of your life, or quite possibly one of the worst so don't take a leap until you've gotten some questions answered such as the above.
In the video below we use the Automated SD Model to further explain some functionality capabilities that can be implemented into trading systems. Advanced methodology will be largely dependant on the programming and trading knowledge of the developer and coder(s). Click here to view a member discussion on the SD Model.
Spend some time learning how to read the markets without software. This will help you achieve a level of understanding that will allow you to differentiate the good from the bad systems available. Having knowledge is power, without it you may be buying a system that is sure to fail. Ask the questions, make sure the logic is sound and spend the time it takes to research the methodology. Hopefully these tips will help you to make a more educated decision to purchase a trust worthy system for your trading.
CFTC RULE 4.41 HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. All Software provided or purchased is strictly for educational purposes only. Any presentation (live or recorded) is for educational purposes only and the opinions expressed are those of the presenter only. Testimonials may not be representative of the experience of other clients or customers and is not a guarantee of future performance or success.
Comments 2
Very poor audio quality in the recording resulting in it being very hard to understand.
Hi Mark,
Thank you kindly for letting us know of the audio quality. We have re-uploaded the recording and resolved the matter. You should now be able to hear with no further issues