What broker do you recommend for autotrading?
Generally, we do not recommend autotrading our
Our option signals are developed for limit orders and in
the case of autotrading, a broker automatically enters a limit order with an
exit price and a stop limit order with a stop price. As soon as orders are
placed, they become visible for the market makers and they create a certain
demand. Market makers (the large institutions) and brokerage companies that
are used for autotrading have access to a great deal of market data,
including where the majority of stop-loss orders are set. If there are
enough stop-loss orders set for a specific price, the market will not
hesitate to take the stop and pocket the profit and after that, reverse in
the previous direction.
You can see evidence of this on
where the market only passed our stop-loss by a few points and then changed
direction again. We know from experience that when you set a stop-loss
order, the market will not hesitate to take it if there are enough orders
set near that price.
What we would recommend is do
not use autotrading. This gives the trader the ability do not place a
stop-loss order, but to mentally keep the stop-loss level. In this case a
trader may consider several options using our stop-loss:
- Keep a mental
stop-loss level and close a trade when this level is hit...
- Do not place
a stop-loss order, but simply wait for our email-alert indicating
closure of our position.
- Place a
stop-loss order according to personal risk tolerance.
Those who use our trading system in their own way
without using autotrading, as a rule achieve better results.
One of the effective ways of using our
options trading system as an alternative to autotrading is to use
different prices to open a trade, usually lower prices.
For instance, if our system generates a signal to buy
QQQQ options at $1.50 a trader may place a trade at $1.45, $1.40 or even
lower. When the market hits our recommended entry price the autotrading
orders are filled and if the numbers of orders are big (you may see it
from the charts or quotes provided by your broker) then as a rule the
market may give a better price to open a trade at and the higher the
volume, the better the price might be afterwards. Using this strategy
helps to reduce the losses by 5-10% and increase profitable trades by
Keep in mind that the described
trading strategy of using our
trading system cannot be utilized through autotrading. This strategy
is one of the alternative
trading strategies that can potentially deliver better results than
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