Trading robots for passive earnings

Trading robots for passive earnings

Investment activity is concluded not onlyin the purchase of financial assets for long-term retention in order to receive dividends and speculative profits from their sale. Today, in the developed financial world, which has been improved with the help of information technology, the list for investments has significantly expanded: real estate, bank deposits, bonds of enterprises and state, business, and algorithmic trading.

Many people believe that the last kind should be used by the trader in the form of an auxiliary tool for fix api trading. However, I want to assure you that this is not true. Algorithmic trading, or as it is also called – “trading robots”, is able to automatically conduct trading without additional investor participation. Thus, the very principle of trading algorithms can be classified as passive earnings.

It should be understood that not all trading robots are so universal. Some have the need to optimize their key parameters on a monthly basis or based on the current trend in the market. Also, some algorithms are capable of increasing only the balance curve, and keeping the means in a deep additive. Whatever is the case, the market is filled with low-quality trade robots and should take this into account.

The great demand of traders provoked a sharp amount of supply in the market, where the main goal was to sell the product and not the goal to earn on investment capital.

Based on this, I will highlight several types of trading robots that will fit under the category of passive earnings.

Scalping algorithms

This type consists in opening a large number of transactions, but with a short hold. Thus, all profitability is formed on the basis of fixing 2-3 points, which in the context of 100 deals will be equal to 200-300 points of profit. The investor does not care how the profitability is formed. It is important for him that every month he can receive the desired profits that could be cashed. Scalping algorithms work on funds, not on balance, which allows you to maintain your profitability and investments.

Mathematical models

This type is suitable for long-term retention, the algorithm of which will be based on financial indicators of the region or currency pair from the fix apiforex market. This allows you to build sets of necessary conditions for opening positions based on mathematical calculations and general models. This approach allows you to diversify risks, as well as to invest in several assets. Moreover, mathematical models can predict the near end of the trend and close the open positions, thereby increasing the funds from fix api trading.

Arbitration algorithms

Similarly, like speculative trading robots, these strategies are based on a short position hold, but the whole idea is completely different. Such algorithms ( open transactions by diverging the price values of the same financial asset on different stock exchanges. Fix api arbitrage allows you to conduct completely risk-free trading, because all profitability is formed at the time of maximum discrepancy, and when this range is narrowed, it guarantees a positive outcome of the trading operation. In this case, you yourself can specify the necessary expansion parameter, under which the trading transaction will be opened.

The choice of what kind of trading robot should be used in your trading depends primarily on you. Whether it’s an arbitrage or scalping algorithm. The leading factor will be the miscalculation of the profit potential, as well as the economic benefits for the investor. Each species has its own advantages and disadvantages. The main thing is to know and to realize to which software you trust your investment capital. After all, in the case of financial losses, the trading robot will have nothing to show.


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