By automated trading, we understand delegating a trading algorithm full decision power to place orders for some length of time – from hours to days.
The advantages of automation in trading are obvious. Algorithms can be used for entering or exiting the market. So, for the exit, we can use much more sophisticated algorithms than convential trailing stops widely used by all trading software. For the entry, algorithm can place a good order during whipsawing.
Can we say that some Forex strategy is best suited for automated trading? Is this a valid question at all? Read further..