Most traders trade with their hands. They follow rules, their experience gained over the years.
There is nothing wrong with this approach, I know successful traders who trade without using mechanical trading systems.
However, this approach has a number of significant drawbacks:
1. it takes a lot of time and money to get long-awaited experience
2. It's very hard to test your ideas.
3. Rules are often very subjective (and difficult to follow, to explain them to another person - for example, intuition).
The main drawback is the inability to objectively test whether your idea works.
Algotrading helps to test rules that can be programmed. Therefore, it is impossible to test how well your intuition works.
This approach removes subjectivity from your trading rules and makes it easy to compare different systems. It also allows you to determine whether
changes made will be effective for this trading system.
The second advantage is that you follow your own rules. It is often very difficult to do it when trading with your hands. You exclude emotions from your
The third advantage is that it is very hard for a person to keep his attention for a long time. We need time to sleep, eat and rest. The trading system
does not get tired and is always in a state of operational availability, besides, robots can process a huge amount of information.
But like any coin, there is also a downside to the medal: there are errors in programs, technical failures in the stock exchange, disconnection of Internet
and many other nuances that will have to be considered.
And how do you trade?