Automated Trading Account Management – Pros and Cons

Automated Forex trading is a fundamental subject over which the most experienced traders and market analysts have broken hosts of lances. A single answer is unlikely. This is why it is owners of the automatically managed trading accounts that should be responsible for solution of the problem of whether automated trading has the right to exist.

A brief overview

Forex trading is always an attempt to fight the uncertainty which everyone understands differently, either as some statistical volatility or an absolute unpredictability of the market. Based on this, everyone chooses their own path of overcoming it. But any approach offers larger profits to the winner while the loser naturally is left with losses.

Many believe a trader’s experience and intuition to be the only effective trading tool. What you need for this is to stay all the time before the terminal watching market movements and, if your intuition is well-developed, the trader will have profitable trades.

An equally large number of traders are positive that the market is as stochastic and affected by laws of probability like anything in this world. This is why they base their trading on an appropriately developed and rational strategy that allows for any possible unexpected things and risks. If you follow it to the letter, you can eventually get the expected amount of profits.

When using trading strategies the trader relies on some signals and indicators to determine lot size, frequency of trades, market entry and exit. Naturally, this warrants a conclusion that this process can be automated which many people do by installing the so-called expert advisors on their trading systems or using a special service – automated managed accounts.

A managed Forex account

The managed account service is offered, in addition to PAMM accounts, many dealing centers and brokers, too. They are used mainly by investors who either do not find it necessary to sit all the time in front of the terminal or simply have no time for this.

It is such managed trading accounts that DeltaStock offers its clients. Naturally, they have their unique features that make them advantageous as compared to other accounts in the market.

To start with, the client can choose the trading strategy for the account transferred for automated management. These strategies can be either developed by DeltaStock itself or provided by third parties.

Strategies on offer can always be analyzed in terms of results they have yielded until a given moment. They can be represented both analytically and graphically. Such indicators as ROI (return on investment) and Sharpe ratio and a few others are used as analytical ratios for evaluation of a strategy’s performance. The Sortino ratio, maximum drawdown, volatility etc. are used to establish the strategy’s degree of risk.

In addition to watching risk indicators in DeltaStock’s managed accounts, you can also manage them. The dynamic risk management function is the company’s innovation and allows daily measurement of this indicator for your strategy. It ranges from 0 to 1 and when set at zero by the trader, the service is suspended.

The most suitable strategy can be selected by using a strategy calculator. It allows you to calculate expected ROI values based on data about the execution period, capital, and risk ratio. You can also view data about really managed accounts in real time.

In conclusion of the story about managed accounts from DeltaStock it should be noted that implementation of all strategies is automated and built on use of a combination of technical indicators and logical algorithms. In other words, the client simply chooses the strategy while DeltaStock automatically runs it.