Difference Between Auto Trading & Day Trading

Understanding the Difference Between Day Trading & Auto Trading

Day trading and auto trading are two different approaches to trading in financial markets. There are distinct differences between the two approaches.

Day trading is manually buying and selling stocks. Day traders focus on capturing intraday price movements in various financial instruments, such as stocks, currencies, or commodities. It requires a significant amount of individual chart analysis and review to identify short-term trading opportunities. Additionally, Day traders typically close all their positions by the end of the trading day and do not hold overnight positions.

Auto trading on the other hand is algorithmic trading that uses a computer program to place buy and sell orders. Auto trading aims to capitalize on market inefficiencies, execute trades with speed and precision, and remove emotional biases from trading decisions. This allows for a mix of trades that offset any losses without manual intervention. The program can also run 24/7. Talk about having your money work for you while you sleep!

This is how the TradeBotSmart platform is designed to work.

While the aim of both approaches is is to take advantage of short term fluctuations, auto trading takes the burden off the trader and puts the bot to work.

The chart below summarizes the key differences between auto trading and day trading.

In summary, auto trading involves using automated systems to execute trades based on pre-defined algorithms, while day trading involves manually executing trades within the same trading day. Both can capitalize on short-term price movements. However, day trading relies on the trader's discretion and active decision-making while auto trading focuses on systematic and rule-based execution.

Auto Trading with TradeBotSmart

The TradeBotSmart algorithm takes the emotion and manual labor out of your trading approach. Additionally, you don't need to be a seasoned trader or allocate a lot of your time to manage the trades. The underlying proprietary code is designed to achieve profits on over two-thirds of all trades*. Even though the system make the trades for you, you can still control options such as lot size and equity protection. This means you can decide when you want to be more aggressive or conservative in your approach.

Lot Sizes

A trade lot size refers to the quantity or volume of a particular financial instrument that is traded in a single transaction. It is a standardized measure used in trading to determine the size or scale of a trade.

• Standard lot size = 1.00 (100,000 units of a commodity/currency)
• Mini lot = 0.10 (10,000 units of a commodity/currency)
• Micro lot = 0.01 (1,000 units of a commodity/currency)

TradeBotSmart trades in micro lots meaning each trading is trading 1,000 units of Gold. This allows for volume trading and reduces risk.

Summary

Day trading and auto trading a different approaches to trading in the market. TradeBotSmart is a auto trading platform designed to minimize the amount of time or skill needed to trade as well as reduce your overall risk.

If you have any questions about trading in the platform, please contact the TradeBotSmart team at success@tradebotsmart.com.

Footnote:

*Trade proficiency may vary. Results are not guaranteed.