This is a program that receives exchange information and makes transactions on the exchange based on the rules that are laid down in it. Robots use different trading principles. Some make many transactions per minute, catching the minimum price movements, others try to find serious movements in the market, saving investors from constant monitoring of quotes and routine actions for placing orders. IS THIS REALLY A TREND OR JUST BROKER MARKETING? In ordinary life, we are surrounded by robots and automatons. Is this a trend or marketing? Previously, traders put up orders to buy shares through the phone according to quotes in the newspaper. Then Internet trading and programs for trading appeared. The speed and volume of incoming information is constantly growing.
Therefore, the automation of decisions and all trading actions that can be written in the form of simple rules or a sequence of actions is no longer even a trend, but a reality. IT LOOKS LIKE A BLACK BOX. WHY SHOULD I TRUST HIM? If the robot really looks like a black box, that is, the algorithm of the robot is not known, as is the reputation of the author - do not trust him. In this case, you will have to re-check the robot throughout the history and in real trading. Therefore, for smooth work with the robot, its trading rules must be open, they can be evaluated and understood. Then it will be easier to understand his actions and control the results. DO INVESTORS REALLY USE THEM? Robots have long been conducting more transactions on exchanges than humans.
On the Moscow Exchange, robots that perform high-frequency transactions account for half of all transactions. There are many algorithmic funds operating all over the world that trade with the help of robots. But private investors are still more likely to trade themselves. This is due to the fact that most of them do not have a formalized clear strategy for trading operations or the ability to implement it in the form of a robot. AND WHAT CAN YOU EARN MUCH? Nothing can be said in advance on the market. But there is one hypothesis that says that trading a system tested on historical data is better than intuitive trading. But the correctness of this hypothesis can, of course, be verified only on one's own experience.
The robot is not the key to the stock market, revealing the secrets of making a profit. It is more of a service that allows you to automate your own trades. WHAT IS THE POSSIBLE PROFIT? Unknown. The spread of profitability of robots, like that of people, is very large. However, robots often show phenomenal results: they don't sleep and never get tired. As an example, we can cite the results of the "Best Private Investor" competition held annually by the Moscow Exchange. For example, according to the results of 2017, it was the robot that became the winner of this competition with a yield of 250% for three months of the competition.
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