Advantages vs disadvantages of automated trading
Let's weigh the advantages and disadvantages of automated or algorithmic trading.
Pros
- Operates 24/7
- Safety measures prevent over-trading
- Minimized losses
- Feelings and emotions are not involved
- Peace of mind knowing the software operates reliably
Cons
- Requires some monitoring
- Changes to configuration may not always be accessible (requires internet connection)
- Reduced risk equates to reduced reward