Advantages vs disadvantages of automated trading

Let's weigh the advantages and disadvantages of automated or algorithmic trading.


  • Operates 24/7
  • Safety measures prevent over-trading
  • Minimized losses
  • Feelings and emotions are not involved
  • Peace of mind knowing the software operates reliably


  • Requires some monitoring
  • Changes to configuration may not always be accessible (requires internet connection)
  • Reduced risk equates to reduced reward