6 Benefits Of Cloud-Based Automated Trading Systems

05/25/2023 03:50 PM By Scott Andrews

Are you a trader or an active, self-directed investor who has tried different strategies with little success? Are you tired of the emotional rollercoaster that comes with making trading decisions? Or do you find it difficult to monitor the markets and execute trades effectively due to a busy schedule? If you answered yes to any of these questions, it may be time to consider a new approach. Cloud-based automated trading systems use sophisticated algorithms to analyze market data in real time, identify trading opportunities, and execute trades without human intervention. This can eliminate the emotional bias that often plagues manual trading and help you achieve more consistent results. Additionally, cloud-based automated trading programs can operate 24/7, 365 days a year, allowing you to take advantage of more trading opportunities if you have a busy schedule, without having to install or manage complicated software. This innovative trading approach can also leverage advances in technology, like AI, with statistical backing. 

Let’s take a deeper dive into automated, cloud-based trading systems and how you can incorporate them into your investment approach.


What Are Cloud-Based Trading Systems?

Cloud-based trading systems are software applications that are hosted in the “cloud” (via an Internet server farm like those offered by AWS (Amazon) or Microsoft) and managed over the Internet by the system developer.  They are not installed on an individual’s PC or computer.  The trading systems use sophisticated algorithms to analyze market data and identify trading opportunities.  When a market condition meets pre-determined rules and parameters, the algorithms send trade signals to the broker’s signal execution software and execute trades without human intervention. 

Cloud-based, automated trading systems can offer several benefits. However, it is not without risks, and self-directed investors should carefully consider their goals, risk tolerance, and investment capital before using an automated trading program.

 

How Are Fully Automated Trading Systems Different From Other Investment Strategies?

Fully automated trading systems are different from other investment strategies in that they rely on pre-programmed rules and algorithms to execute trades, rather than relying on human decision-making or analysis. These rules can be adaptive based on recent market performance and changing conditions and even driven by advanced machine-learning and AI technology to find opportunities that would not be found otherwise.  Automation also improves execution speed (minimizing missed opportunities) and removes emotion from the trading process, helping to improve consistency and trading results.

Traditional investment strategies, such as those based on fundamental or technical analysis, involve a trader making subjective decisions based on their analysis of market conditions, news events, and other factors. This can be influenced by cognitive biases (such as anchoring, loss aversion, and gamblers’ fallacy) and other emotions and ultimately lead to poor trading results. Fully automated trading programs can also operate 24/7, without the need for human intervention, which can allow for more opportunities and even take advantage of movements in multiple markets simultaneously.

Fully automated trading programs are complex to build and maintain, but when built properly by trading professionals, can offer many benefits to investors.

 

What Are The Benefits Of Cloud-based, Fully Automated Trading Systems?

Cloud-based, fully automated trading systems offer several benefits to new and experienced traders, and investors alike, including:

  • Consistency: One of the key benefits of using fully automated trading systems is consistency. Unlike human traders who can be influenced by emotions and cognitive biases, an automated trading program follows pre-programmed rules and parameters, leading to more disciplined and profitable trades.

  • Efficiency: Automated trading programs can save traders time by analyzing market data and executing trades much faster than a human trader. This can allow traders to take advantage of more trading opportunities, particularly in fast-moving markets. Moreover, automated trading programs can operate 24/7, meaning traders can benefit from trades that occur outside of regular trading hours.

  • Backtesting: Automated trading systems can be backtested and optimized on historical data, allowing traders to identify strategies with the best odds of success. This can lead to better trading results and help traders avoid costly mistakes that may have been made through trial and error.

  • Risk Management: Automated trading software can help traders manage risk by setting stop-loss orders and other risk-management parameters. This can help prevent large losses and preserve capital, particularly in volatile markets

  • Scalability: Automated trading programs can be scaled up to handle larger trading volumes, which can be difficult for human traders to manage. This can allow traders to take advantage of more trading opportunities without sacrificing performance.

  • Diversification: Automated trading solutions can allow traders to diversify their trading portfolios by using multiple strategies simultaneously. This can help to spread risk and potentially increase returns.


How Do I Get Started With A Cloud-Based Automated Trading System?

Getting started with InvestiQuant's fully automated trading programs is a great way to take advantage of volatility and put advanced technology to work for you. iQ Autotrading offers traders a range of robust, statistically-based, systematic trading strategies that are designed to generate attractive returns, regardless of the direction of the stock market. The best part is that these turnkey solutions can be enabled to autotrade your account at an approved execution broker in a matter of days, without having to install or maintain any software whatsoever.


With the intraday design of the strategies, there is no overnight risk, and all strategies seek to profit using one of two primary trading methodologies: mean-reversion or momentum. They trade either long or short with adaptive, volatility-based stops and targets to take advantage of bullish and bearish opportunities.


By utilizing a wide range of strategy inputs, including alternative data, technical patterns, volatility, market profile, seasonal events, and multiple advanced machine-learning techniques, iQ Autotrading offers a diversified approach to algorithmic trading. InvestiQuant's autotrading is a powerful, hands-free solution for traders and investors of all types, offering strong, verified returns, potential for outsized growth, emotion-free, statistically-based trading, low correlation with stock trading strategies, a turnkey, hands-free solution, and aligned interests.


Ready to see how cloud-based, automated trading can transform your investment portfolio? Request info to learn about the performance of InvestiQuant’s automated trading programs and how your account could be enabled for automated trading in a matter of days. 

Scott Andrews