If you have been trading for a short while the chances are you might be pretty confident in what you are doing. But have you wondered if you could be doing it better? There are very few industries that don’t already benefit from automation.

Automation makes what we do faster and more efficient. So imagine the impact of an automated trading system, on your trades.

If you don’t already have a firm trading strategy in place and have been ‘winging it’ a bit, then that is going to be one of the first things that you do. You need to know how you are going to make a profit. A trading plan doesn’t have to be complicated; it is a document that you will write that will state what you will trade when you will trade and how you will enter the trade and why. And your exit strategy.

So let’s take a look at how an automated trading system could benefit you.

Speed

You will have to get to know your software in order to get it to perform exactly as you need. But once you have it set-up, it will be able to do the heavy lifting. It can make decisions and deliver you valuable data at a speed that your average human just can’t. The speed increase is one of the reasons that people tend to make money more often when using automated trading system.

Consistency

As soon as you have a defined trading strategy in place, you will know how to set-up your trading system. The plan will be the guide for the trading rules that you will input into your trading system. This will give consistent performance in your trades. For example, if you have a loss, when you act manually, you might skip a trade because your natural reaction is a lower-risk appetite. However, an automated trading system will stick to the plan and will make the appropriate trades.

Backtesting

What you will need to study and learn your automated trading system can manage at high-speed. When you use the historical data, your trading system can make smarter trading decisions in the future.

This will be one of the most useful tools that your trading system can give you.

Discipline

Of course, you have a large amount of discipline, because you couldn’t trade or work in a financia market if you weren’t. But an automated trading system doesn’t have to sleep, it doesn’t get sick, and it will carry out the work regardless. Take into consideration your emotional reaction to profits and losses, as well as outside personal issues. An automated trading system has none of these issues, and unless you have set it up incorrectly (which is unlikely), your system will have your trading plan.