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AI FAE TRADING BASIC COURSE CHAPTER 10
Automatic trading systems (bots)
Automatic trading systems , also known as Trading bots are software programs that make trading decisions on financial markets. These systems use algorithms to automate market data to analyze and execute trades based on predefined strategies. The use of bots has increased in recent years as they increase the efficiency and eliminate emotional decision making in trading.
Functions of automated trading systems:
- Market analysis: Bots can continuously analyze a large amount of market data, including prices, volumes and historical trends to to identify trading opportunities.
- Order execution: Once a trading opportunity is identified, bots can automatically Place buy or sell orders without human intervention is required.
- Risk management: Many bots integrate advanced risk management tools, such as Setting stop-loss orders or adjusting position sizes based on the current account balance.
- Backtesting: Before a trading bot is deployed live, it can be based on historical data tested to verify the effectiveness of the trading strategy.
Advantages of trading bots:
- Efficiency: Bots can react to market changes faster than humans and are able to trade around the clock.
- Consistency: Unlike humans, bots do not get tired or emotional, which leads to a more consistent application of the trading strategy.
- Elimination of human errors: Bots follow exactly the programmed Instructions, thereby eliminating errors caused by human emotions or Misinterpretations can be reduced.
Challenges of using trading bots:
- complexity in development: Developing effective trading algorithms requires in-depth technical and financial market knowledge.
- Market changes: Bots programmed for specific market conditions can sudden market changes or anomalies.
- Surveillance: Despite automation, bots require constant monitoring to to avoid technical errors or unforeseen problems.
- Security: Since bots have access to trading accounts and financial resources, they be protected from hacking and other security threats.
Automated trading systems are powerful tools that, when used correctly, can improve trading performance. They are not a panacea and require careful consideration and Management to ensure that they effectively achieve the trading objectives support.
Caution
The topic of bots is a very complex area! To create a bot they should have a basic understanding of how it works. In our estimation, over 90% of the bots available for purchase on the market are are not suitable for generating long-term profits. all the reviews that can be found can actually be manipulated Some systems are already manipulated in their programming so that they survive every backtest but in reality with their real money then fail. Only use bots approved by the European Institute for Investment Certification. Using the certificate number, you can Quickly check whether this certificate is valid: https://www.eific.eu/de/ Those certified by EIFIC are based on Thoroughly tested and greatly limit your risk.
The basis for bots are indicators. And here is also The reason why most bots do not work in the long run work. The market is constantly changing, and so are the indicators. If a bot is set up for a specific period of time, this does not mean that it continues to run just as stable. It is the strategy that makes a good bot The research team of the AI Finance Association Europe has been working for some time to create profitable To implement strategies in automatic trading systems. For this purpose, completely new indicators programmed that adapt to market conditions You can test all systems extensively for free during the test period try out and develop with us.
Example: Development project Bot V900
If you are interested in automatic trading systems, you do not need 4-digit amounts spend, buying a pig in a poke. Simply register free of charge via the following link and just try out whether this type of trading is beneficial for them: https://member.ai-fae.org/de/?refs=70
What you need:
A demo account for the C-Trader Trading platform à our recommendation “Pepperstone”
The trading software “C-Trader”
The instructions for downloading and setting up the C-Trader Bots à can be found in the blog posts of the AI Finance Association Europe.
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