Top Benefits of Automated Algo Trading for Retail Traders

11 Mar. 2025

Top Benefits of Automated Algo Trading for Retail Traders

The stock markets today are fast, and traders are looking for improvements in their efficiency and profitability. Automated algorithmic trading has been one of the biggest game-changers introduced into the market in recent years. Previously, algo trading was only for institutional investors and hedge funds, and now, it is within reach of retail traders.

In automated algo trading, trades are executed automatically without human intervention, which helps to complete a transaction quicker and more accurately while reducing human error. But what are the retail traders getting in return? Let's find out.

1. No More Emotional Trading

One of the primary reasons retail traders fail is due to the presence of erroneous emotional decisions. It is for this reason that fear and greed lead retail traders to make irrational choices like selling out of panic in a declining market or getting overexposed in a bull market.

Algo trading, by automating trades, has robotized the emotional aspect of trading. This makes one day less certain to be profitable than the last. Its reason for existence is highly contingent upon using a fixed strategy to preprogram trades based on principles that have stood the test of time rather than private emotion, especially extreme emotions. Order is born out of reason and data.

2. Fast Execution of Trades

In the world of trading, time is the emperor. A few seconds' difference can transform a potential soaring profit into marinara sauce on the trading ground if there are no circuits in the marketplace.

By introducing algo trading, Combiz Services Pvt Ltd prevents traders from losing time and money during trades by executing their trades in fractions of a second. This light-year speed is light-years ahead of the manual trader and realigns the trader with the harsh market movements.

3. Backtesting to Make Better Strategies

Any strategy must be proven before it is applied live in the markets. This is where backtesting would come in.

Algo trading allows users to run backtests on past data to evaluate the success rate of their trading strategies, as in the case for risk factors and profit potential. Such care in choosing catapulted strategies from backtesting and enhanced their trading success rate. By contrast, failure matters; look at strategies that started honorably and folded because of the first trade placed on their manuscript.

4. Lower Trading Costs

Manual trading things require constant monitoring with costly, frequent order placements in a given year.

So, in algo trading, all the trades in a day are perfectly placed, minimizing multiple costs in transactions due to an optimal trading strategy; hence, favorable pricing of trade orders. But when it is automated trading, a trader does not need constant analyzing and subsequent human assistance just in case they need some support. Some time-saving trade decisions become a pro to this style of trading.

5. 24/7 Market Monitoring

Since retail traders are often tied up with work commitments and personal responsibilities, it can be extremely difficult to keep track of market activity throughout a given day. Automated trading systems, on the other hand, monitor several markets 24 hours a day, executing trades without any physical presence of the trader. This means that no opportunities for profit would be missed, even when the trader is offline.

6. Diversification and Multi-Asset Trading

Manual trading can make harried attempts to track several assets. On the other hand, algo trading allows traders to run several strategies in parallel across several markets.

Retail traders can use the algo trading platform at Combiz Services Pvt Ltd to leverage diversification across an asset basket that contains stocks, forex, commodities, and cryptocurrencies. Such diversification minimizes risk while creating profit opportunities.

AI BOT Features:

AI BOT-Algo Trading and Copy Trading is a web-based platform
AI BOT supports multiple broker
AI BOT allows cross-broker copy-trading
AI BOT supports algo trading from various trading platforms eg. Trading View, MT4/5, Python, Excel, Amibroker, Ninja Trader, etc.
AI BOT supports direct trading in multiple accounts in one click
AI BOT has basket order and one-click trade features
AI BOT can place a trade in thousands of accounts in one click with mili-seconds latency.
AI BOT your trades can copied even when you are not suitable for part-time traders as well.

7. Accuracy and Efficiency Improve

Human errors, such as placing the wrong order or making a calculation mistake, can cause major losses.

With algo trading, such errors are avoided, ensuring trades with maximum precision and accuracy based on predefined rules. This allows for optimal entry and exit points and further improves efficiency.

8. Data Analysis and Decision-Making in Real Time

Making trading decisions comes down to data. The algo trading systems analyze the market using real-time data, which are, in turn, the trigger for instant trade execution based on parameters pre-set by the trader.

For example, if a specific price level is reached by the stock in question, the algo trading system enters or exits the trade without delay, ensuring the trader won't lose an opportunity.

9. Customizable and Scalable Strategies

Each trader will have different goals and preferred risk levels. Combiz Services Pvt Ltd allows traders to fit their algo trading strategies to their liking.

Whether the trader wants to follow a momentum strategy, an arbitrage strategy, or even a scalping strategy, algo trading systems can be programmed accordingly. These will also be scalable as the trader builds up capital and experience and would want to scale the same strategy to trade bigger sizes.

10. Regulation and Risk Control

Risk management is paramount in trading, and algo trading systems are equipped with their own risk controls.

Traders can parameterize their losses through stop-loss, take-profit, and position size limits on their systems. Additionally, algo trading platforms like those from Combiz Services Pvt Ltd are regulated to provide the trader with an assurance that the trades comply with SEBI regulations and are thereby protected.

Conclusion

Automated algo trading is turning the world around for retail traders. It removes emotional biases, optimizes speed and efficiency, and enables traders to monitor the markets 24/7. With backtesting and other features, risk diversification and advanced risk management now allow retail traders to stand a better chance against institutional investors.

Retail traders have been given access to algo trading by companies like Combiz Services Pvt. Ltd., which offer solutions to enhance their trading in a powerful and easy-to-use manner.