What is Robot Trading (Algorithmic Trading or Automated Trading)
Robot trading, which is a term often identified as algorithmic or automated trading, presents investors with a significant opportunity to maximize their trading potential. Robot trading enables traders to grasp opportunities with speed and convenience, as it is based on a computer program generating trade signals in today’s Binary Option market and placing ‘Put’ or ‘Call’ orders depending on the given market opportunities.
Different Types of Algorithmic Trading
The primary difference between robot trading types is the level of automation. Algorithmic trading can come in partially automated strategies, whereby some of the order entries also include a degree of human intervention, and it can come in the form of a fully automated strategy which operates entirely free of human intervention. The latter is known as “robot trading”. Neither system is superior to the other, as both have their set of advantages and disadvantages, and the selection of one over the other completely depends on the investor’s trading style.
Advantages of the Two Types of Robot Trading
Automated Trading (Trading Robots)
- Security – The environment in which the program runs is extremely secure, tested and sophisticated;
- Reusable – The invested effort can be used multiple times;
- Scalability – The system has the ability to execute multiple trades across multiple markets and accounts;
- Speed – trading robots are usually placed on the server-side, thus benefitting from the lowest possible latency;
- Automation – It is entirely autonomous, with zero need for human intervention in making trading decisions.
- Control – Users retain power over trading execution (required by highly professional investors);
- Flexibility – A trading strategy can be adapted easily;
- Adaptability – Traders can control and respond to highly volatile environments better.
In-house Built and 3rd Party Developed Trading Robots
Today’s Binary Option ecosystem offers a wide range of trading robot solutions. One can benefit from 3rd party trading robots or develop their own, according to the requirements and strategy each trader sees suitable for his or her portfolio. Binary Xchange fully facilitates and gives access to 3rd party solutions, in addition to providing a cutting-edge investment platform that presents trading robot development facilities to satisfy your needs and requirements.