WHY AUTOMATIC TRADING SYSTEMS ?

The automatic systems comes from the necessity of following a plan that must be strictly fulfilled , bearing the losses when they come, taking benefits at the moment that our strategy considers necessary, letting it work when we have gained a lot , stop it when its behavior begins to give samples that's something is going wrong...

This way we taught to a computer to follow our system and to operate strictly by its rules, with the advantage that we get ride of the situations like " I have gained much and I close my position already", or emotions like "I am losing and I leave because I do not want to lose much more ", being sometimes right and sometimes wrong

If we follow the signals of the system by ourselves, we will be taking the hazard of letting us influence by our emotions, and this way, ending up ruining our system, because losses and profits would change according to our beliefs of which we guess it is going to happen, instead of acting according to rules proven right based on our statistics and probabilities. To pass of the mathematics and common sense to let emotions take over, always finishes in the same place: losses and more losses .

So the automated systems comes up to help us, taking care of following our system without emotions, while we spent our time in which it pleases to us, giving more possibilities to the small and professional investor.