{"id":108050,"date":"2017-06-29T10:05:53","date_gmt":"2017-06-29T14:05:53","guid":{"rendered":"http:\/\/countingpips.com\/?p=108050"},"modified":"2017-06-26T09:18:47","modified_gmt":"2017-06-26T13:18:47","slug":"mechanical-trading-vs-automated-trading","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/mechanical-trading-vs-automated-trading\/","title":{"rendered":"Mechanical Trading Vs Automated Trading"},"content":{"rendered":"
June 29, 2017<\/div>
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By\u00a0ProfessionalTradingSystems.com<\/strong><\/p>\n

In this article we are going to discuss what are the differences between mechanical trading, algorithmic trading, rule-based trading and more phrases used to describe systematic trading.\u00a0 They are subtle nuances between the terms that`s why I decided to write more about \u00a0this topic.<\/p>\n

100% Rule-based trading<\/strong><\/b> \u2013 This type of strategies implies that every rule is objective and there is no need on the part of a trader to interpret any rule of the system. Because it is 100% rule-based it means that no discretion is needed and if 4 people are trading the same system, they will get the same final result after X number of trades.\u00a0 If we only talk about rule-based trading, it will mean that part of the system is absolute (no interpretation) and part of it is up to traders to decide what to do.<\/p>\n

Mechanical trading <\/strong><\/b>\u00a0\u2013 \u00a0Here again we have no interpretation of the trader. Everything is 100% clear as rules and the one who trades mechanically the markets only needs to apply predefined rules. In his essence mechanical\u00a0 and 100% rule-based trading are exactly the same. The word \u201cmechanical\u201d probably comes from the fact \u00a0that every rule is applied mechanically like a machine without any interpretation.<\/p>\n

Algorithmic\u00a0 trading<\/strong><\/b> \u2013 It is the same \u00a0as \u00a0previous two. The only difference is that algorithmic implies that we have created a code for a trading platform, which will trade automatically for us instead of manually entering and exiting every trade.<\/p>\n

Expert Advisor \u00a0(EA)\u2013 <\/strong><\/b>This is the name of a strategy code created especially for MetraTrader 4 trading platform. This is very popular Forex platform because it is free,\u00a0used by many brokers and traders and easy to operate with.<\/p>

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Forex Robot \u2013 <\/strong><\/b>The other name of \u00a0Expert Advisor. There is no difference between these \u00a0two terms.<\/p>\n

Automated trading \u2013 <\/strong><\/b>This term means that a trader has a mechanical strategy and he also has created a strategy code for a trading platform in order to automate his trading. This is the most recognized term regarding trading with 100% rule-based systems.<\/p>\n

Systematic trading \u2013 <\/strong><\/b>the same as mechanical trading. It is just another term for the same type of trading. Systematic trading implies using the same trading rules over and over again.<\/p>\n

I hope that I have brought a clarity regarding the subject of mechanical trading and what are the similarities and differences between the most used terms regarding this type of trading.<\/p>\n

Article by Professional Trading Systems<\/strong> – \u00a0Forex Mechanical and Automated Systems<\/a><\/p>\n

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By\u00a0ProfessionalTradingSystems.com In this article we are going to discuss what are the differences between mechanical trading, algorithmic trading, rule-based trading and more phrases used to describe systematic trading.\u00a0 They are subtle nuances between the terms that`s why I decided to write more about \u00a0this topic. 100% Rule-based trading \u2013 This type of strategies implies that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-108050","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=108050"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108050\/revisions"}],"predecessor-version":[{"id":108088,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108050\/revisions\/108088"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=108050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=108050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=108050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}