Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.2% 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

What are the benefits of EA trading?

The primary benefit of the robotic nature of EAs is just that; they are robots. They don’t have thoughts and feelings. They work in the same way their system is designed.

When a trading system is applied to the EA, very few things will cause the EA to deviate from its pre-designed course (a lack of funds and connectivity are the only things that spring to mind).

What this means is that the emotions every trader feels and to which they react when trading are completely removed. For every time that you decided to open or close a trade when your strategy told you not to, the EA would have stayed the course. The outcomes that emotions create, almost always negative, can be avoided. Trading with an EA becomes purely about strategy execution.

Further, an EA can be programmed to do all sorts of analysis, modifications, and trading while you eat, sleep, work and repeat. You just need to have a stable internet connection (preferably on a VPS) and maintain a balance in your account for it to execute trades when the strategy says so.

Both of these benefits give you a statistical edge and may increase profitability. You expose yourself to greater market opportunities (no more sitting watching markets till all hours of the night), and you potentially remove the costly mistakes made when deviating from your strategy due to the heightened emotions that often accompany trading in volatile markets.

Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information provided here, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.