Using Automated Trading Systems in 2020


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For anyone new to the world of trading (be it stocks, commodities, or even cryptocurrencies) it might be logical to start by manually buying what you’re interested in, and selling when you want to. However, that’s not always the only option: automated trading systems (ATS) use computer programs to create buy and sell orders, based on a predefined set of rules. In some cases, ATS can be better for beginners than manual trading, because it takes away the ability to trade impulsively, as inexperienced traders sometimes tend to do.

The popularity of ATS is growing: as of 2018, the global algorithmic trading market was valued at more than USD 10 billion, and expected to reach up to USD 25 billion by 2027, according to a report by Coherent Market Insights. These numbers are a clear indication that automated trading systems are here to stay, especially during times of economic crisis, which many traders believe is the best time to invest.

Many traders choose them above manual trading because this method minimizes emotions, preserves discipline, helps diversify trading, and allows for backtesting — applying rules to historical data to see if they hold up. On the other hand, they come with their own risks: computers can (and do) fail, they need to be constantly monitored, and it’s possible to create a system that performs terribly because you’re trying to optimize it beyond its abilities.

Running with these risks, those who choose to use ATS for trading also have to decide whether they want to build their own system or use something that already exists. Building your own software seems like a better idea, at least theoretically, but it requires a lot of knowledge, effort, and time. On the other hand, using existing software means it cannot be tweaked to function exactly the way the user would want it to, and they tend to charge a fee.

It’s also possible to find an ATS that doesn’t charge a fee. One of them is 1k Daily Profit, which — as its name implies — promises USD 1,000 per day with a starting capital of USD 250. The system uses a set of rules that mean it will pull out of a trade if it goes downhill for the trader in most cases, giving it a large percentage of successful trades. And if the user would rather try their hand at trading by themselves, the system also offers a manual trading option.

With everything considered, it is up to the trader to decide whether ATS (and, in particular, 1k Daily Profit) is for them. Some may prefer the cold, machine approach to trading that guarantees you won’t be led astray by an impassioned choice, while others prefer the organic approach of manual trading. Regardless of your choice, always remember to do your research, stay safe, don’t get overconfident, and — most importantly — to buy low and sell high. Sounds simple, doesn’t it?

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