Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Beginner

Inside Pepperstone: 5 Reasons to automate trading

Automated trading, also known as algorithmic trading, is a fast growing segment of retail trading. Here at Pepperstone, a large number of our daily transactions take place with automated trading and it's an exciting area of growth for the future of retail trading. Using algorithms to operate and automate the traders' predefined commands whilst they lean back a little might seem like something from the future, but it’s not as out of reach as it sounds. Let’s take a look.

Define automated trading

First we need to define what automated trading is. In its simplest form, we’re talking about:

  • Algorithms that execute trades
  • Following predefined instructions, to
  • Support the trader’s strategy

There are many tools that arm the trader in this approach, such as our partnership with CapitaliseAI, and of course MT4 and our other trading platforms, but for now, let’s unpack 5 reasons why this approach might work for you.

5 reasons to use Automated Trading

  1. Avoid emotions
    Configuring algorithms when you have focus and perspective, and then allowing those algorithms to execute those decisions on your behalf is one way to minimise self sabotage. In this instance you trust in your cooler self to prevail.
  2. Check yourself
    When trading with robots across platforms, the trader can look at multiple possible outcomes. Traders can then employ backtesting to test the efficacy and understand the trading system’s edge with data samples.
  3. Going Turbo
    Try as we may there is only so much we can process at once. Automated trading however can harness the processing power of specialised software, reacting to market changes in rapid succession and capitalising on the moment.
  4. More “me time”
    The time saved from setting up automated trading often outweighs the initial time spent setting up the system. Once configured and optimised, it’s mostly about periodically checking your positions and your account.
  5. The more you know As advancements continue with technology across the trading space, those that begin on the algorithmic journey could possibly stand a chance to capitalise on new developments, with less time spent familiarising and more time actioning.

Learn more about trading CFDS

Here at Pepperstone, our customers love the product range along with the low cost to trade and the fact so many markets are open around the clock. Interested? Watch the more videos to learn or speak to our team about whether CFDs are right for you.