Autotrading is a form of trading where significant part of the trade – the analysis, execution or both – are carried out by an automated system. Ideally, trading forex, stocks, and crypto involves spending long hours analyzing the markets or individual companies, coming up with actionable trade signals, and executing them.
Autotrading, also known as algorithmic trading, seeks to simplify this process by automating different aspects (or the entirety) of this process. This form of trading remains one of the most revolutionary innovations in the money and stock markets that made it possible to earn passively from the industry.
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How does it work?
Referred to as expert advisers, the automated trading systems work by following particular preset rules when entering and exiting trades. It will also trail and analyze the news, economic calendars, and major announcements and come up with informed best forex signals that it can then execute automatically or with your approval. One of the most interesting things about autotrading is that once programmed, the system will independently and automatically monitor the market and execute trades 24/7. The effectiveness of autotrading and auto trade systems can be confirmed by the fact that over 80% of all shares and stocks trades executed daily in the United States are initiated by the autotrading systems. But why would you consider autotrading your investments and using an expert adviser?
Why use autotrading software?
i) Wholly passive incomes: Autotrading reduces the amount of time you spend monitoring markets effectively making it one of the most viable passive income earners.
ii) Outperforms most individual traders: Autotrading systems are faster in analyzing data and executing trades. This means that they have the highest probability of scoring you maximal profit in a buy order and shield you from unnecessary losses in the case of a market downturn. These, plus the fact that can operate 24/7 makes them more effective and profitable than your average money market trader.
iii) Highly versatile and supports forex, shares and crypto trades: Autotrading can be applied in virtually every sector of the money markets. It can be developed for the forex, cryptocurrency and even stock shares industry making it possible to passively trade in any of these sectors without the need of previous industry-specific experience.
iv) Can be used to perfect a trading strategy:Autotrading ensures that you don’t need to wait until you perfect a trading strategy to start earning from the money markets. You can choose to invest with an autotrader while you work on your strategy or use its past trading results to enhance your profitability.
What are the pros and cons of using autotrading?
- Eliminates the often destructive emotions from trading
- Faster order execution means more profit or minimized losses
- Autotrading makes it possible to profit 24/7 from such markets as forex and crypto that operate around the clock
- You don’t need prior trading experience to benefit from autotrading
- Helps you achieve consistency in your trades
- Requires constant updated to maintain profitability
- System glitches may expose you to above average losses
- Takes time to create and maintain or capital to acquire and maintain regularly
How to spot the best autotrading systems:
- Trade execution speeds
- Level of automation, whether full or partial
- Reliability and the expertise of its developers
- Analysis accuracy and returns on investments
- Registration and regulation
- Quality of customer support given
- Trading strategies used and their reliability
Best autotrading service providers:
1. Learn 2 Trade – Market Leading Trading Signals
Learn 2 Trade may be one of the most successful forex trading signal providers in the industry with a proven track record of 92% signal success. The British company offers its clients forex trading signals on forex pairs and cryptocurrencies and an online day trading course with unlimited access.
How does Learn 2 Trade work?
Learn 2 trade is an effective market analysis and forex trading signal provider. Once you have completed your purchase and deposited funds into your trading account, you will have full visibility of every trade made by Learn 2 Trade. They will send you 3 Premium signals per day which are delivered via WhatsApp or Telegram and provides you with the most viable entry and exit points as well as stop-loss and trade-profit orders.
How to join Learn 2 Trade
You may start the registration process by choosing your preferred package. Learn 2 Trade offers three trading signal packages:
1-month package – Costs $25 offering 3 trading signals per day, 89% success rate, live messaging service, and clear SL and TL.
3-month package – Costs $55 offering the same as the 1-month package.
6-month package – Costs $85 offering 3 premium signals per day with an 89% success rate, live messaging service, clear SL and TL.
After choosing your package, you will be transferred to the cart page. Click on the ‘proceed to checkout’ button in order to complete your registration process
You will get redirected to the billing page where you get to fill your personal details and your preferred payment method – credit card, PayPal, and cryptocurrencies
- Proven track record of between 89.54 – 93%
- Learn 2 Trade offers signal delivery via Telegram
- Learn 2 Trade offers a 30 day, 100% money-back guarantee
- Learn 2 Trade does not offer brokerage services
2. CryptoSignals.org - Trading Signals for BTC, ETH, and More
CryptoSignals.org is a online autotrading service built to help you trade cryptocurrencies for a profit. The service offers 2-3 daily trading signals to identify opportunities to day trade cryptocurrency. Each signal includes an annotated technical chart so you can analyze the trade yourself, as well as clear entry, stop loss, and take profit levels.
CryptoSignals.org operates via Telegram, which ensures that all subscribers get access to the signals in real time. The Telegram channel can also be paired with a bot so that trades are executed automatically on your behalf. CryptoSignals.org has a free Telegram channel where you can get 3 signals per week. A subscription to the premium channel costs 35 GBP per month.
CryptoSignals.org provides trading signals for several popular cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple. These digital currencies are highly volatile, so they provide enough opportunities for 2-3 daily trades. However, it's important to note that CryptoSignals.org does not issue signals for other altcoins.
How to Start Trading with CryptoSignals.org:
You can start trading with CryptoSignals.org simply by signing up for the free or premium Telegram channel. Signals are issued directly to the channel, so you can copy the order information to your crypto broker.
- Signals provided via Telegram
- Clear entry, stop loss, and take profit levels
- Each signal includes an annotated technical chart
- Free Telegram group available
- Only covers a few popular cryptocurrencies
3. Centobot – Best overall
Centobot is an automated trading system specially designed to offer autotrading services to the cryptocurrency investors operating in the binary options markets. Started in 2017, Centobot is aimed at helping both experienced and beginner crypto traders earn decent and wholly passive incomes from their crypto industry investments. The crypto autotrader draws its uniqueness from the fact that it exposes crypto traders to over 15 alternative coin pairs and promises to help its investors earn over 300% in revenue
Wide range of autotrading systems
You will also be interested to note that unlike most other crypto autotrading systems that only offer one unified system, Centobot presents you with a choice of close to ten auto traders. These are specially designed to follow specific trade settings and indicators. Simply put, you don’t have to keep adjusting the settings for a single autotrading system to reflect the needs of different cryptocurrencies. Here, you only have to choose the autotrader that best works with your preferred crypto. And this includes Bitcoin Algo V2.1 and Ethereum Rise v1.1 that are specially tuned to trade Bitcoin and Ethereum coins respectively.
Free download and high returns on investment
You also don’t have to pay to acquire either of these bots as they are availed to you free of charge. The fact that these autotrading systems are free doesn’t in any way whatsoever limit the profitability of these bots. These fully automated systems continue leading the binary options markets in helping investors generate the highest returns on investments in the range of 300%. You should, however, note that while the system is free, most brokers demand that you fund your account with at least $250 to activate the autotrading system on their platform.
How to start trading on Centobot:
Create an account with the autotrader by clicking on your most preferred autotrading system. The process is pretty straightforward and only requires your name and email address, plus you get to decide to host your system with one of the three binary options brokers listed on the site.
Fund your account and take the autotrading system live with an initial minimum deposit of $250.
Configure the trade settings. Note that while the trading process may be automated, you can still control when to trade and the number of trades the systems can launch at any given time.
- Set and forget feature that earns you earn wholly passive incomes
- Presents you with a wide range of free autotrading systems
- Highly specialized autotrader systems
- Will only work with binary options brokers
- Not immune to market the unpredictable cryptomarket volatilities
4. BinBot – Best for binary forex options
- The robot is fully automated and thus beginner friendly
- The autotrading bot is relatively straightforward to use given its highly intuitive user interface
- Hosts some of the most effective auto trading systems that report in excess of 300% in returns on investments.
- Will only work with binary options brokerages
5. Premium FX Signals - Best for forex trading
FX Signals is also a forex trading signal generation system. It works by constantly monitoring the markets and calculating the most viable trade entry as well as the most profitable trade exit points. More importantly, these signals also include such risk management features as the take profit and stop loss tools levels. These forex signals are also presented in an elaborate format that makes them ripe for uptake by the different autotrading robots. You only have to configure the trading system in a manner that allows fast uptake and execution of these trades as soon as they are received.
How to use FX Signals:
Start by registering for the service on the provider’s website, the process is rather straightforward as you only have to provide your names, a valid email address, and a phone number.
Settle on a given forex broker, keeping in mind that FX Signals does not offer forex brokerage services.
Decide on your most preferred mode of signal delivery, between email notification and SMS for United States residents.
- Supports automated forex trading making it a great passive income generation stream
- Elaborate forex trading signals that are relatively easy to interpret and execute, even for the most inexperienced trader
- Doesn’t offer forex brokerage services and this forces you to partner with a third party – forex brokers
6. ForexSteam – Best for GBP/USD currency pair
Forex steam developers describe their forex auto trading system as a super reliable forex auto trading system that was specially designed by experienced forex traders and programmers. The system promises to help you grow your investments by between 5% and 10% per annum. It runs on your local machine and is currently retailing at a one-time payment of $117. Apart from the promise of high attractive returns on investments, the autotrading system is equipped with key risk management features like the trailing stop loss and hard stop loss (breakeven-level) aimed at protecting your bottom line.
How to register with Forex Stem:
Clicking on the Signup button on Forex Steam’s website directs you to their sales page
Click on Proceed to checkout and you will get redirected to their billing page where you get to fill such personal details as your name, country of residence, physical address, email address and your preferred billing method – either debit card or PayPal
Pay and have a link to the autotrading system download site emailed to you
Install and decide on whether to use the default or customized trade settings
- Beginner friendly as it doesn’t call for prior forex trading experience
- Fully automated thus requires minimal effort on your part
- Attractive return on interests and risk protection
- Faced with integrity issues in the recent past
7. Cryptohopper – Best for cryptocurrency trades
Cryptohopper may be one of the most recent entrants into the crypto autotrading scene, but has already taken over the industry, rising steadily to become one of the most popular crypto autotrader. And this was, to a large extent, made possible by its unique cloud-based technology. Unlike most other autotrading systems hosted on your computer and which will only execute trades when the PC is on and connected to the internet, Cryptohopper operates purely over the cloud. This makes it possible to run 24/7 with minimal to zero interruptions.
In a bid to make the autotrading system wholly passive and beginner friendly, the trading system developers equipped it with the external trading signaler that allows it to run on autopilot. In such a case, you only have to link it to your trading account with a crypto broker and allow it to run on the default settings. It, however, is also highly versatile and allows for significant trade settings from crypto trading experts.
Cost and risk management
The autotrading system is however not free and depending on your preferred subscription model, you will have to spend between $19 and $99 per month. You will also like its relatively advanced risk management and drawdown protection setting that include a stop loss order and trailing stops while appreciating the level of technical analysis that goes into the research and customization of these settings. How to get started with Cryptohopper
Fill in your registration details on the Cryptohopper website. Only your name, email and preferred cryptohopper trading account password are required here.
Authenticate your registration by clicking on the login link sent to your email
Login and decide whether to use the default or customized account settings on the cryptohopper dashboard
Link your cryptohopper autotrader with your preferred crypto exchange from the choice of over 10 most popular crypto brokerages.
- Beginner friendly and doesn’t require prior trading experience
- Highly versatile and can be linked with all the top crypto exchanges
- Passive income generator
- One may consider their $99 monthly subscription plan relatively expensive
- Isn’t fully independent broker but requires third party input
Everything else you need to know about autotrading:
- You must learn how to avoid scams:
The autotrading sphere is full of scams, out to fleece of your hard earned cash or steals your personal and financial details. Before signing up with free or premium subscription auto trading system, consider vetting its reliability by looking at both independent reviews and its registration/regulation.
- Backtest results aren’t reflective of the EA’s future performance:
Virtually all the autotrading services providers will have the backtest results for their systems plastered all over their website. But don’t be too quick to trust them as they can be manipulated to achieve desired results. When looking for an autotrading system, look beyond the backtest results and into the independently verifiable trading results of a real account posted on myfxbok.com.
- You have to keep updating the system:
Understand that the money markets are highly dynamic and if you are to remain profitable, your autotrading system must adjust to these dynamics. Thus the need to keep updating it to versions that put into account these changes.
- Keeping the autotrader open throughout the day only increases your risk exposure:
When it comes to money market trades, understand that more trades don’t always mean more revenues. And the more trades you execute, the higher your risk exposure and the probability of scoring a loss.
Long gone are the days when you needed to spend months, probably years testing and perfecting different trading strategies before earning decent incomes from trading. Similarly, and thanks to the numerous autotrading systems currently available, you don’t have to spend hours on end in front of a computer screen analyzing markets and monitoring price action of your own trades. Advancements in the autotrading sphere have made it possible to set your trades in autopilot mode, and profit from market and product price movements in the cryptocurrency, forex, and stock share markets while you go about your day.
Glossary of Investment Terms
A bond is a loan made to an organization or government with the guarantee that the borrower will pay back the loan plus interest upon the maturity of the loan term. It can be advanced to the national government, corporate institutions, and city administration. It is an investment class with a fixed income and a predetermined loan term.
A mutual fund is a professionally managed investment vehicle that pools together funds from numerous investors and invests it in such securities as stocks, bonds, and other money market instruments. They are headed by portfolio managers who determine where to invest these funds. They are highly regulated and invest in relatively low-risk money markets and in turn post lower rates than other aggressive managed funds.
Peer-to-peer lending (p2p lending) is a form of direct-lending that involves one advancing cash to individuals and institutions online. A P2P lending platform, on the other hand, is an online platform connecting individual lenders to borrowers.
Bitcoin is the legacy cryptocurrency developed on the Bitcoin Blockchain technology. It is a new form of money primarily developed to solve some of the inherent challenges associated with fiat currencies like inflation and over-production. It is virtual (online) cash that you can use to pay for products and services from bitcoin-friendly stores.
An index fund refers to the coming together of individuals to pool in funds that are then invested in the stock and money markets by professional money managers. The only difference between an index fund and a mutual fund is that the index fund follows a specific set of rules that track specific investments and index stocks.
An Exchange-traded fund refers to an investment vehicle that is publicly traded in the stock exchange markets – much like shares and stocks. The fund is expert-managed and its portfolio comprises of such investment products as stocks, bonds, commodities, and more money market instruments like currencies.
Retirement refers to the time you spend away from active employment and can be voluntary or occasioned by old age. In the United States, the retirement age is between 62 and 67 years.
Penny Stocks refer to the common shares of relatively small public companies that sell at considerably low prices. They are also known as nano/micro-cap stocks and primarily include any public traded share valued at below $5.
Real Estate can be said to be the land and buildings on a given property as well as other rights associated with the use of the property like the air rights and underground rights. Real estate can be either commercial if the land, property, and buildings are used for business purposes or residential if they are used to non-business purposes – like building a family home.
REITs are companies that use pooled funds from members to invest in income-generating real estate projects. While a REIT may specialize in one real estate niche, most diversify and invest in as many high-income real estate projects as possible. They are especially interested in commercial real estate projects like warehouses, prime office buildings, residential apartments, hotels, timber yards, and shopping malls.
Asset simply refers to any resource of value or a resource that can be owned and controlled to produce positive value by an individual or business.
A broker is an intermediary to a gainful transaction. It is the individual or business that links sellers and buyers and charges them a fee or earns a commission for the service.
Capital gains refer to the positive change in the price of a capital asset like shares and stock, bonds or a real estate project. It is the difference between the current selling price of the asset and its lower original buying price and it is considered a taxable income.
A hedge fund is an investment vehicle that pools together funds from high net worth individuals and businesses before having professional money managers invest it in highly diversified markets. The difference between mutual and hedge funds is that the later adopts highly complicated portfolios comprised of more high-risk high-return investments both locally and internationally.
An index simply means the measure of change arrived at from monitoring a group of data points. These can be company performance, employment, profitability, or productivity. Observing a stock index, therefore, involves measuring the change in these points of a select group of stocks in a bid to estimate their economic health.
A recession in business refers to business contraction or a sharp decline in economic performance. It is a part of the business cycle and is normally associated with a widespread drop in spending.
Taxable Account refers to any investment account that invests in shares and stocks, bonds and other money market securities. The account is offered by a brokerage company and you are obliged to report and pay taxes on the investment income each year.
A tax-advantaged account refers to savings of investment accounts that enjoy such benefits as a tax exemption or deferred tax payment. Roth IRA and Roth 401K are examples of tax-exempt accounts whose contributions are drawn from after-tax incomes with the yields generated from investing funds therein being tax-exempt. Traditional IRA, 401K plan and college savings, on the other hand, represent tax-deferred accounts. Their contributions are deductible from your current taxable incomes but you get to pay taxes on their accrued incomes.
Yield simply refers to the returns earned on the investment of a particular capital asset. It is the gain an asset owner gets from the utilization of an asset.
A custodial account is any type of account that is held and administered by a responsible person on behalf of another (beneficiary). It may be a bank account, trust fund, brokerage account, savings account held by a parent/guardian/trustee on behalf of a minor with the obligation to pass it to them once they become of age.
An Asset Management Company (AMC) refers to a firm or company that invests and manages funds pooled together by its members. Like mutual or hedge funds, the AMC creates diversified investment portfolios that comprise of shares and stocks, bonds, real estate projects, and other low and high-risk investments.
A registered investment advisor is an investment professional (an individual or firm) that advises high-net-worth (accredited) investors on possible investment opportunities and possibly manages their portfolio.
The fed rate in the United States refers to the interest rate at which banking institutions (commercial banks and credit unions) lend - from their reserve - to other banking institutions. The Federal Reserve Bank sets the rate.
A fixed-income fund refers to any form of investment that earns you fixed returns. Government and corporate bonds are prime examples of fixed income earners.
A fund may refer to the money or assets you have saved in a bank account or invested in a particular project. It may also refer to the collective basket of resources pooled from different clients that are then invested in highly diversified income-generating projects.
Value investing is the art of using fundamental analysis to identify undervalued shares and stocks in the market. It involves buying these shares at the current discounted prices and hoping that a market correction pushes them up to their intrinsic value effectively resulting in massive gains.
Impact investing simply refers to any form of investment made with the aim of realizing financial returns while positively impacting the society, environment or any other aspect of life in the process. Investment in solar projects and green energy, for instance, posts profits and helps conserve the environment.
An investment App is an online-based investment platform accessible through a smartphone application. It lets you save and invest your funds in a preset portfolio that primarily consists of shares and stocks, bonds, ETFs, and currencies based on your risk tolerance.
Real Estate crowdfunding is a platform that mobilizes average investors – mainly through social media and the internet – encourages them to pool funds, and invests them in highly lucrative real estate projects. It can be said to be an online platform that brings together average investors and lets them enjoy real estate projects previously preserved for high net worth and institutional investors.
💸 What is autotrading?
Autotrading is the art of having an algorithmic trading and market analysis software automatically analyze or execute trades on your behalf. This can either be fully mechanical autotrading that takes control over the entire process from analysis to closing a trade or partial that involves the automation of either the analysis or the execution aspects of the trade.
💸 Is autotrading a preserve of forex and cryptocurrencies or can I autotrade stock shares?
Yes, you can automate your shares and stock trades. Note that while autotrading may be more popular with the forex and cryptocurrency, there exist numerous reliable autotrading systems that can be used to automate your stock market investments. Like in the cases of forex and crypto investments, the auto traders here can be used to automate the entire shares and stock trading process.
💸 Are there additional fees to autotrading?
The answer to this is largely dependent on the type of the autotrading system you wish to use. While some like Centobot are freely available and only require a specific amount as initial deposit amount to activate it, others like Forex steam have to be acquired by buying a lifetime trading license. Yet others such as the Cryptohopper are available in monthly subscription plans. When deciding on the best automated trading system to use, you have to put into consideration such factors as their win rates and returns on investments in relation to their acquisition/subscription costs.
💸 Is auto trading more profitable than manual market analysis and trade execution?
The effectiveness of an autotrading system is largely dependent on your previous exposure to the money and stock markets. Ideally, most autotrading software will outperform beginner and average investors but may be outdone by the expert and more experienced traders when it comes to position trading, especially in the stock markets. Their speedy market analysis and order execution, however, makes them the favorite of both beginners and experienced traders when it comes to day trading such volatile markets as the cryptocurrency and forex markets.
💸 Does autotrading expose my investments to unnecessary risks?
Yes, every aspect of the money and stock markets is risky and embracing even the most sophisticated autotrading system doesn’t make it immune to these risks. Going through the terms and conditions for most of these systems, you will realize that they all appreciate the role huge volatilities and unexpected downturns may have on your trade. You can however almost always rely on their speedy reaction to take you out of losing trades fast enough.
💸 How does an autotrading system shield my investments from loss?
One of the most rudimental ways in which these autotrading systems can shield you from huge losses is by executing fast market exit strategies in the case of huge downturns. To achieve this, most of these systems are fitted with innovative risk management features like the stop loss, trailing stop and hard stop-loss orders that close trades as soon as the trades turn against your predictions.
💸 How can I use the autotrading system to improve my trading strategy?
One of the primary reasons most experienced traders turn to some of the most profitable autotrading systems is not to just maximize their profits but also perfect their trading strategies. This is achieved through the keen analysis of the trading history of these artificially intelligent tools to understand how they conduct market research and execute trades. They can transfer this knowledge and use it to improve the effectiveness of their individual trading strategies.