Wednesday, 12 December 2018

Test the Manual System Using the Automatic Trading System

Black Box in forex is often interpreted by foreign traders as forex trading using an automated system made with programming languages. If in Indonesia better known as algorithmic trading or more eloquently call it "automatic trading".

Overseas there, Black Box always experiences significant developments. Automatic trading systems are made with various objectives; such as launching a new trading strategy, for commercial purposes, or for self-consumption to test the manual system that has been made. This is different from in Indonesia, where the development of automated trading using expert advisors (EA) appears on average with new strategies or unique systems.

The reason some traders use automated trading services is efficiency. It is clear that a better technology tends to have efficiency in helping people and usually becomes cheaper than we hire analysts to issue trading signals. In addition, the use of automated trading is reliable in terms of transaction speed. As you know, if we trade manually and want to click buy or sell, it turns out the price is already moving. If you use automatic trading, there is no story until it's too late to place a position.

Another advantage of automated trading is that it is able to test strategy simulations very easily. This is very different when using manuals because there is no manual simulation method that is as effective as using EA. Thus, the EA simulation test can be relied upon to convince traders of the system itself.

Therefore, the actual automated trading system can also be used to test manual trading systems. This is because automatic trading allows backtesting trading, or testing, to be done quickly. Backtesting is an attempt to estimate trading results based on historical data on price movements in the past. An algorithmic trading system can run this, even if we want to test our manual system ourselves, then we might need a long time. Therefore, a number of traders change their manual trading system into automatic trading with a programming language, then backtesting before applying it to their daily trading activities manually or automatically.

Benefits of a manual system test with an automated trading system
There are various benefits that can be obtained from testing manual systems with automated trading systems, including:


  • Allows the simulation of trading results quickly and easily.
  • Eliminating unsatisfactory strategies.
  • See how strategies work in a variety of different situations.
  • Allows us to optimize the system before applying it.
  • Automate our manual trading strategy so you can trade automatically with your own strategy.
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Automatic trading
If you want to trade automatically, you can use an expert advisor (EA) by placing it on a trading account. This is where the real expert advisor functions begin to appear. EA that has been placed on a trading account will carry out the task in accordance with the rule trading. If you look at the economic side, try to compare how much time will be disposed of if manually trading compared to if we use EA.

Moreover EA will be active 24 hours a day and 5 days a week as long as the computer is not turned off. This means that there is a greater chance that EA can be caught compared to manual work as done by humans, where a trader needs to take a break and get out looking for fresh air.

Now with the description of this article, you can already understand that using EA can actually make the manual system tested with certainty. By changing the manual trading rule to automatic trading using the EA program language, the trading system is reliable.

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