Today, it is no surprise the possibility of using automatic trading systems. But not so long ago it was inaccessible for many traders. Now, about 40 percent of all transactions worldwide are automated trading robots. The result of such trading has become an unexpected market volatility. Those who use technical analysis during the market forecast, probably began to notice that many of the tools began to work with greater accuracy. Try to understand what began to happen in the financial markets in connection with the use of automated trading strategies and tactics.
It is no secret that almost all traders think alike. And they are a standard set of analytical tools. This market analyst happening around the world in the same conditions. When the open order, almost all of them, except, of course, wrong, sent to one point limit profits. Thus, practiced all the mathematical study of trading. I must say that in manual trading takes into account all aspects, including the direction of the trend, its strength and market volatility.
But most importantly - all the trader shall include in their trading strategies and stops the loss of profit. Thus, it is known in advance, which will be held on the projected market reversal. That is why the tactics of manual trading forecasts are subject to a massive factor. But in the case of using trading robots, the situation is somewhat different. Here there are a number of nuances that bring down the movement of the market. All trading systems work for their inherent algorithm. And this algorithm is primarily set up to determine the trend, or rather - its direction. The programs laid forecasting indications of technical tools used in manual and tactics.
But in contrast to the manual strategies, the robot does not take into account a number of circumstances. For the program it is necessary to identify the movement of prices, but it does not take into account some other factors affecting the trade. And as a result, are not taken into account such important issues as the avoidance and management of risks. Thus trade robot being in most cases, only when the terminal. If you turn off the Internet program ceases to conduct payment orders based on the deposit balance. And when the connection is restored, the trading system begins to spend on a new market analysts. In this account of previous transactions can not be accepted. Naturally, a lot of these trading robots can begin to place orders other than those set manually. And of course, that in this case will be determined and new resistance levels. Thus, it appears that the closure of many transactions may take place well before touching the price is mathematically certain level of resistance.
Example of automated trading
For example, consider the case of the use of certain simple trading system. For example, when predicting the market using indicators such as RSI, Fibonacci levels and the indicator MACD. When the MACD line crosses the dotted histogram display, it begins to serve as a signal to enter the market. In carrying out the tangent line along the RSI, in this case should occur breakdown channel. Fibonacci levels in this example are the definition of the level of prices, which can occur trend reversal. But it's all perfectly works with manual trading tactics.
Moreover, in the absence of automatic trading. But in the case of using robots such trade ceases to be successful. Increasingly, it appears that the price simply does not reach the designated level of Fibonacci. And the reversal occurs at a number of points before. Of course, in this example, the trader may suffer a loss, if you do not put up a stop loss or trailing stop. This robot takes the profit. Such examples are numerous. But the ultimate situation is changed market analyst in connection with trading robots. Similarly, also changed the profile of the market. After using automated trading strategies has concluded more transactions. Including became much larger and profitable trades.
What to do
But it is necessary to continue to sell to everyone. And in such a situation you need to take some decisions. To streamline the number of profitable orders. There are several ways to solve problems. Pervaya- is start applying automated trading every trader. But many of them are not yet ready to use robots in the power of prejudice, mistrust and for many other reasons. Then there is the next option - replace your trading strategy on the new one.
But this option is not very convenient. After all the years of trading we are all used it to their methods of doing business. Also. In fact, to replace the usual strategy will take more than one month. In addition, not a fact that will be found the best option. In this case, it is the last option - you just need to take into account in their trade the changes that have become inherent in the market, and adjust their method of analysis in accordance with these changes.