Any business needs carefully constructed strategies to become successful and in the same way any business tool should follow strict strategies to serve its purpose. The algo-trading robot like 1G Profit System is built on such strategies which are actually used by a skilled trading broker to maximize gains for his clients.
Strategies used to perform auto trading
The algorithm is not simply constructed to perform some automatic function on auto-mode. Its function is real-time and highly influential and hence need to extremely accurate, fast and trustworthy. The precise trading decisions are taken by employing the following strategies:
Strong statistical methods: All calculations, analysis, predictions and financial transactions run on mathematical models. There should be a foolproof statistical basis to construct the models with minimum chance of error as possible.
True market reflection: The activity area is the trading market, changing every minute and every action from every corner can create differences. The algorithm should pertain to all the elements in the market and economy to the core.
Repetitive or consistent market inefficiencies: The auto trader trades according to the market trends and trends are never isolated. It should be able to capture repetitive or persistent market inefficiencies to generate and execute the signals it is assigned for. For, behind every success or failure in the market strategy, there might be a reason. The algorithm must be designed to eliminate this reason to deal with inefficiency and save the user from falling into a failure. Only when the reason repeats in the general market, it can be concluded as a probable cause of failure.
Economic and fundamental analysis: Financial transactions are always subjected to economic policies, be it tax, revenue or budget policies. The algorithmic robot must absorb the most recent advancements in its strategy to generate valid signals.
Client behaviour: Finally, trading is done by traders who differ from each other in preferences and expectations. To deliver the expectations of the client, the algorithm has to capture the client behaviour trends also.
If you are trying to trade on a third party’s algorithm, you should first become familiar with its trading technique. When you attempt to build your own trading robot, you really have to get hold of different decision-making variables, random combination strategies, arbitrage, index funds, weighted prices, trading range and so on. Yes, it is a technical hard work to create your perfect trader.