New contracts will automatically be rolled over as follows:
Please note:
• The rollover will be automatic, and any existing open positions will remain open.
• Positions that are open on the expiration date will be adjusted via a rollover charge or credit to reflect the price difference between the expiring and new contracts.
• To avoid CFD rollovers, clients can choose to close any open CFD positions prior to the expiration date.
• Please ensure that all take-profit and stop-loss settings are adjusted before the rollover occurs.
• All internal transfers for accounts under the same name will be prohibited during the first and last 30 minutes of the trading hours on the rollover dates.
If you’d like more information, please don’t hesitate to contact [email protected].
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
If you’re new to trading, you’ve probably heard terms like ‘algorithmic trading,’ ‘algo trading,’ or ‘Expert Advisor (EA)’.
But what exactly does it mean, and why does it matter?
Here’s a surprising fact: 70% of all trades in the U.S. stock market are now executed by algorithms. That means most buying and selling decisions aren’t made by humans staring at screens but by lines of code.
In this guide, we’ll break down the definition of algorithmic trading, how it works, its pros and cons, and whether it’s a good fit for beginners like you.
What is Algorithmic Trading?
Algorithmic trading, or ‘algo trading’, uses computer programs to execute trades automatically based on predefined rules. These rules include timing, price, quantity, or complex mathematical models.
How About an Expert Advisor (EA)? Is It A Type Of Algorithmic Trading?
Here’s one way to look at the relationship between an Expert Advisor (EA) and algorithmic trading:
All Expert Advisors operate on algorithmic trading, but not all algorithmic trading are Expert Advisors.
How is this so?
By definition, an Expert Advisor is an algorithmic trading software with MetaTrader 4 and MetaTrader 5. However, the general concept exists elsewhere under different names, like trading bots or automated scripts.
For example, the thinkorswim platform offers ‘ThinkScript’ for limited trading automation. The ‘IB API’ supports algorithmic trading with the InteractiveBrokers trading platform.
While ‘Expert Advisor’ is platform-specific, its concept applies to a broader spectrum of algorithmic trading.
What Are The Differences Between Algorithmic And Manual Trading?
1. Lightning Speed Vs Human Cognitive
Trading programs execute trades in milliseconds. Human cognitive processing speed falls behind this benchmark by a considerable margin due to our staggered nature of drawing a conclusion.
2. Decision-Making Process
When making decisions that impact your financial integrity, you’re battling consciousness shaped by experience, emotions and judgment. This storm of consciousness can lead to impulsive actions that may or may not work in your favour.
With trading programs?
Lines of codes don’t even know what emotions mean! However, programs are exceptional at observing predefined rules and algorithms. This laser-focused characteristic delivers improved trading accuracy and consistency.
3. Scalability
The theory that humans can be excellent multitaskers is a myth. Studies show that the human brain is incapable of completing more than one cognitive task at a time.
Hence why scaling up trades requires immense discipline with a small margin for error, not to mention the sustainability of this practice.
Algorithmic trading doesn’t have this flaw. As long as the programmer has defined the playbook, the program could easily scale up trading across markets around the clock.
4. Adaptability And Flexibility
Is algorithmic trading going to come out on top against manual trading? Not so fast!
While algorithms thrive in predefined conditions, they can be thrown off balance when an unexpected variable comes into play.
For example, a seismic development in geopolitical events can change the markets’ dynamics drastically and invalidate the trading program’s protocols.
This is an area where humans triumph over algorithms.
Because we can perceive real-time events and make necessary adjustments to position ourselves accordingly, we’re infinitely better at pivoting our trading strategies to optimise our trades.
Common Misconceptions
How Algorithmic Trading Works
Algorithmic trading boils down to three steps:
Types Of Trading Algorithm
1. Trend-Following Strategies
These algorithms chase momentum. For example, if Bitcoin rises 5% in an hour, the bot might buy, expecting the trend to continue. Tools like moving averages or the Relative Strength Index (RSI) often guide these decisions.
2. Arbitrage Strategies
These exploit price differences between two or more markets to make a profit. Algorithms can quickly identify and act on these discrepancies
3. Mean Reversion Strategies
These strategies assume prices will revert to historical averages. If Tesla stock drops 10%, the algorithm will buy, betting it’ll bounce back.
4. Sentiment-Based Trading
Advanced algorithms use machine learning and natural language processing (NLP) to analyse news, social media, and financial reports to determine market sentiment. If an algorithm detects positive sentiment around a stock, it may trigger a buy order.
Benefits Of Algorithmic Trading
1. Automation
Trades are executed automatically, reducing the need for manual intervention.
2. Speed
Algorithms can execute trades faster than human traders, ensuring timely market entries and exits.
3. 24/7 Trading
Trading programs can operate round the clock, even when you’re not available.
4. Emotion-free Trading
Algorithms trade without emotional biases, sticking to the strategy.
Risks Of Algorithm Trading
Autopilot, 27-7 operations, lightning-speed trades. Algorithm trading sounds like a definitive solution to generate profit, doesn’t it?
Theoretically, yes, but only if they don’t present these risks (which are inherent to algorithms, unfortunately):
1. Market Risks
As mentioned, trading programs are second to none for observing predefined rules. However, market volatility arises at unexpected moments, such as geopolitical turmoil and black swan events.
These turns of events aren’t premeditated. As such, trading algorithms aren’t equipped to deal with sudden changes in market conditions. This risk can lead to substantial losses.
2. Model Risks
‘Past performance is not indicative of future results.’
How often have you seen this disclaimer on a brokerage firm’s website, social media and brochures?
This universal truth applies to all forms of trading, including algorithmic trading. Algorithms may perform well on historical data but fail in real-market conditions due to changes in market dynamics
3. Human Errors
Algorithms are only as good as the programmer who wrote their codes. Human errors could still take place in developing the program. This kind of oversight can lead to huge losses if not detected earlier.
4. Glitches And Failures
System outages, latency issues, and connectivity problems can disrupt trade execution, leading to missed opportunities or incorrect trades.
Is Algorithm Trading Right for You?
Algorithmic trading can be a powerful tool, but it’s not for everyone. Here are some factors to consider before deciding to automate your trading:
Do you have a solid understanding of financial markets?
Algorithms do not guarantee profit. A strong foundation in trading principles is essential.
Are you comfortable with technology?
Algorithmic trading requires familiarity with coding, trading platforms, and data analysis.
Can you manage risks effectively?
Even the best algorithms can incur losses. Understanding risk management is crucial.
For those who prefer manual trading, algorithmic trading can supplement decision-making rather than fully automate it.
Wrapping Up
Algorithmic trading isn’t a magic money-making machine. It’s a tool. When used wisely, it can enhance speed, discipline, and efficiency.
For beginners, the key is to start simple, test rigorously, and never stop learning.
Whether you’re coding your trading program or using a pre-built solution, remember: the goal isn’t to replace human judgment, but to amplify it.
Visit our product page on Expert Advisor to learn more about VT Market’s algorithmic trading solutions.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
The trading hours of some MT4/MT5 products will change due to the upcoming Daylight Saving Time change in the AU. Please refer to the table below outlining the affected instruments:
The above information is provided for reference only; please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Imagine this: You’ve just lost 20% of your portfolio in a week. Frustrated, you replay the trades in your head, but you can’t pinpoint where it all went wrong.
Was it the impulsive Bitcoin buy?
The USDJPY you held too long?
Without a clear record, you’re left guessing.
This scenario is all too common for traders who skip a critical tool – the trading journal. We’ll explore why maintaining a trading journal is helpful and essential for beginners aiming to turn chaos into consistency.
The Downsides Of Trading Without Keeping Track
Trading without a journal is akin to navigating a ship without a compass. You may set sail with a clear destination. However, without tracking your progress, it’s easy to drift off course and get caught in these impasses:
Emotional Decisions Dominate
New traders often chase losses or exit winning trades too early, driven by fear or greed. Without a journal, these emotional patterns go unchecked.
Progress Stagnates
How can you improve if you don’t know what’s working? Missing data means missed opportunities to refine strategies.
Repeat Mistakes
Forgetting past errors, like ignoring stop-losses, leads to costly mistakes.
Risk Management Falters
Overleveraging or poor position sizing becomes a habit without accountability.
In short, winging it costs money. A trading journal removes the guesswork.
What Is a Trading Journal?
A trading journal is more than just a record of your trades.
It’s a systematic log of every trade, decision, and outcome. It’s not just numbers. It captures the story behind quantitative (eg, prices, profit/loss, lot size) and qualitative (eg, emotions, market conditions) angles.
Think of it as a mirror reflecting your good and bad habits. Whether digital (apps, spreadsheets) or analogue (notebooks), they all turn raw experience into actionable wisdom.
What Are The Components Of An Ideal Trading Journal?
Five Reasons Why Recording Your Trades Is Favourable For You
1. Understand Your Strengths and Weaknesses
By consistently documenting your trades, you gain insights into your trading patterns. Identifying which strategies yield positive results and which don’t allows you to focus on your strengths and address your weaknesses.
2. Master Emotions
Trading is as much a psychological endeavour as it is a technical one. A journal helps you recognise emotional triggers that cloud your judgment, such as fear or greed.
By understanding these emotions, you can develop strategies to manage them, leading to more rational decision-making.
3. Improve Risk Management
A detailed journal can fine-tune your risk management. By analysing past trades, you can see if you’re consistently taking on too much risk or if your stop-loss levels are too tight or loose.
This awareness helps refine your risk management practices, safeguarding your capital.
4. Support Setting Up Incremental Goals
A trading journal acts as a roadmap for your trading journey. By setting and tracking incremental goals, you maintain focus and motivation.
Whether improving your win rate or reducing the average loss per trade, a journal helps you set realistic targets and measure progress.
5. Avoid Future Mistakes
History tends to repeat itself, especially in trading. Documenting your trades allows you to learn from past mistakes, ensuring you don’t fall into the same traps again. This proactive approach can save you from costly errors in the future.
Wrapping It Up
A trading journal isn’t just a record. It’s your roadmap to mastery.
For beginners, it bridges the gap between reckless gambling and strategic investing. By documenting every decision, you gain clarity, control, and a competitive edge.
Ready to transform your trading? Start your journal today. Your future self will thank you.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Insights 
VT 
