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Benefits and risks of automated trading


Forex traders around the world use the MetaTrader 4 (MT4) platform to trade forex and to analyse international financial markets. Developed in 2005, MT4 is arguably the most popular trading platform globally today. This is largely due to the advanced tools it offers and also its powerful automated trading capabilities. In this article, we’ll look at what automated trading is and the benefits and risks associated with this form of trading. We’ll also take a small dive into what makes MT4 so appealing to all types of traders. 

What is automated trading?

Automated trading (also known as algorithmic trading) is one of MT4’s most powerful features. It involves the use of computer programs to automatically execute trades on your behalf in the forex market. This type of trading has become increasingly popular as technological advances make it easier for almost anyone to access the market.

Expert Advisors (EAs)

Using automation, traders can develop and apply EAs, also known as trading robots, as well as technical indicators. An EA is a program that opens or exits positions based on pre-established instructions. Practically any trading strategy can be executed as a trading robot, optimising trading and market analysis where required. This removes the emotion of trading since trades are placed once the instructions have been met, mitigating adverse trading decisions.

Benefits of automated trading

Algorithmic trading offers several benefits to traders. Let’s discuss some of the most popular:

Risks associated with automated trading

While automated trading offers key benefits, some risks may be incurred.

In conclusion

Automated trading offers many benefits to a trader. This includes speed, efficiency and the removal of emotional biases from trading decisions. However, this form of trading does come with risks such as mechanical or software failures, over-optimisation, lack of rationale, and other general market risks. Traders must properly understand these factors and carefully assess the suitability of automated trading for their specific individual needs.

More on the Metatrader 4 platform

The MT4 platform is renowned the world over for its innovative capabilities that simplify the complexities of forex trading. It delivers a flexible trading system to millions of traders worldwide, regardless of expertise. MT4 offers a high level of convenience because it is user-friendly, customisable and allows for quick and easy execution of trades. In addition, MetaTrader4 offers:

Become a T4Trade trader

T4Trade gives traders access to more than 300 tradeable instruments across 6 asset classes like forex, metals, futures, indices, and commodities. Traders can choose from a range of innovative accounts best suited to their trading style and expertise. Traders can also benefit from flexible leverage, tight spreads, mobile trading, in-depth market and news analysis, and other exclusive trading tools.’s T4Trade’s MT4 trading platform allows traders to test their trading strategies, using many of the platform’s useful features.

Boost your trading skills with T4Trade

Become a skilled forex trader and widen your scope of knowledge about trading through a comprehensive pool of educational resources on the T4Trade website. Access a range of useful videos, articles, webinars, podcasts and LIVE TV through the T4Trade Academy. Consult the broker’s FAQ page for tips on becoming a better trader.

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