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It’s a bit hard to watch screens constantly to make money in the stock market. To avoid this, you need to be familiar with automated trading. Using this method, you can set up rules for buying and selling stocks automatically with the help of computer programs. In this case, you’re able to trade and take advantage of market opportunities even when you’re taking a nap in your cozy bed. A VPS is necessary to trade smoothly and ensures your trading software operates 24/7. To make the most of automated trading with VPS and maximize your profits, read this blog post.
What is Automated Trading?
With automated trading, you can use a program to set rules so it can automatically make trades for you based on your rules. This is a smart method for trading in financial markets. For example, you can decide in which conditions the program should buy or sell, or enter and exit trades. Also, you can set features like trailing stops or guaranteed stops to manage your risk. Using this method, you don’t need to spend most of your time in front of screens and watching markets. It can do many trades fast, without any emotions as you set rules already. You can set some rules and algorithms to follow market trends.
How does automated trading work?
With automated trading, you can predict whether market prices will rise or fall by using CFD (Contracts for Difference) trades.
1- Set up rules
The first step in beginning automated trading is selecting a trading platform. After that, you have to set parameters depending on your trading tactics. Your trading expertise should be taken into account while establishing these guidelines, taking into account factors like the best time to trade, the best price to enter or leave at, and the appropriate trade size. For example, you may set a rule like this: "Buy 100 Apple shares when its 50-day moving average goes above the 200-day average".
2- Automated trade based on rules
After you set all the rules and parameters, the platform starts to trade based on those rules. It will constantly check the market to make trades based on the conditions you’ve set. It does it fast and efficiently so you can make money from specific market events while going on a travel, sleeping, or enjoying a coffee with your friends.
3- Leverage in CFD Trading
You are not required to pay the asset's full price while trading CFDs. Rather, you simply need to make a lesser down payment, known as a margin. We refer to this as leverage. Leverage can increase your earnings, but it can also increase your losses. You can lose more than your original investment if the market moves against you.
Why Do You Need a VPS for Automated Trading?
VPS for algorithmic trading is necessary. You need a system for your automated trading to work based on pre-set algorithms that don’t need manual intervention. Without a VPS, these systems can’t run smoothly and continuously. Here are the reasons why you need a VPS for automated trading:
Never Miss a Trade with 24/7 Connectivity
A trading system should run around the clock without any interruptions and it’s not possible without a VPS. Home computers are not a good idea for automated trading because they can face problems like power outages, crashes, or internet disconnections which can cause losses. With a trading VPS, you’ll have a stable and reliable environment for trading purposes. For Forex markets that operate 24/7, a Forex VPS is very important to help your strategies function seamlessly.
Faster Trade Execution with Low Latency
The world of trade is super-fast! so, even milliseconds can affect your profits. When you buy VPS in the closest location to your broker’s servers, the latency will be minimized and trade orders will be executed as fast as they can. For strategies like high-frequency trading (HFT) or scalping, speed is even more important. The less latency is, the better prices you make for your trades.
Connect to Your Trades Anytime, From Any Device
Unlike trading with your home computer where you can only use that system, with a VPS you can access your trading system from any device regardless of your location. It means you can even access it when traveling and enjoying a picnic. With the use of Remote Desktop Protocol (RDP), you can keep an eye on and control your transactions from any location.
Enhanced Security for Peace of Mind
Advanced security features like firewalls, encrypted connections, and DDoS protection are provided by a VPS, protecting your trading systems and data. This extra degree of trading security is crucial for traders who are in charge of sizable capital or trading volumes.
Benefits of Automated Trading with VPS
The mentioned reasons were enough to use a VPS for algorithmic trading. But there are also other benefits for trading bots with VPS:
- Complete customization: You can set up and operate unique trading platforms and bots with a VPS to fit your specific needs and strategies.
- Eliminate emotional decisions: By adhering to a pre-planned strategy, using a low latency VPS for automatic trading will help you resist the effect of greed or fear.
- Effectively analyze trends: Real-time trend and opportunity identification is possible with a VPS because of its sophisticated indicators and capabilities.
- Make several trades at once: Execute many trades simultaneously without having to handle each one by hand.
Challenges to Keep in Mind
There are many advantages to trading bots with VPS, but there are two important things to know before starting this method:
- You should set the rules and parameters carefully. Because the incorrect parameters that don’t align with market conditions can cause financial losses due to trades impacted by human error.
- Sometimes the market can take an unexpected turn suddenly. In this situation, if you have multiple trades going at once that are executed fast, you may lose lots of money.
IMPORTANT NOTE: To avoid these challenges and minimize risks, you need to monitor and refine your strategies regularly. Also, you can set up multiple MT4 accounts on VPS for better management.
What to Consider When Choosing a VPS?
Before choosing a VPS, there are some factors to consider. Here we mention these factors so you’ll know what to focus on when finding low latency VPS for trading bot or robot.
Compatibility with Your Trading Platform and Strategy
The first and most important factor to consider before choosing a VPS for algorithmic trading is its compatibility with your platform (for example MetaTrader 4 or NinjaTrader) and strategies. Not all VPSs support all platforms and most of them only support certain platforms. Also, the VPS that you want to choose should have enough processing power, memory, and other resources to support your strategies. Also, check if the VPS can handle your special indicators, and plugins, and works well with your operating system.
High-Speed Storage for Smooth Performance
Your trading system will be able to access and process market data more quickly if the chosen VPS has SSD (Solid State Drive) storage. Even quicker performance is offered by NVMe SSDs, which is particularly advantageous for methods that depend on the analysis of historical data or huge datasets. Your platforms will run well if you have enough storage (30–100 GB) and room for frequent backups.
You may be interested in the 15 Best Forex VPS providers in 2025.
CPU Cores for Handling Complex Strategies
Your VPS's ability to manage resource-intensive tasks effectively depends on how many CPU cores it has. Having more cores enables you to backtest strategies instantly, operate several trading bots, and analyze data in real-time. It's best to start with at least two cores, and you can increase as your trade tactics develop.
Scalability to Grow with Your Needs
Your VPS should grow to accommodate your needs as your trading tactics become more intricate or if you oversee several platforms or accounts. It's a good idea to start with a VPS that has at least two cores, with the option to expand to more as your needs change. Scalability guarantees that as you grow, your trade will continue to be effective.
Location and Latency
The faster the connections, the faster they react to market changes! You should check the available locations of the VPS hosting provider because it directly affects how quickly your trades are executed. Choosing a VPS server that is close to your broker's server is therefore the ideal option. Select a US server, for instance, if you trade on the New York Stock Exchange. This will shorten the time it takes to process your transactions, which is crucial for speed-dependent strategies.
High Uptime Guarantee
To stay active in the trading world without any interruptions, you should choose the best VPS provider which offers a higher uptime guarantee. A 99.9% uptime guarantee ensures your trading bot stays active and experiences no interruptions.
Reliable Customer Support
Reliable customer support is important to solve your problems and answer your questions. A responsive and knowledgeable support team that is 24/7 available is an essential factor. Choose a provider that has customer service through live chat, email, or phone. In this case, you can resolve problems fast minimizing downtime or trading losses.
Hardware and Performance
How effectively your trading system functions depends on how well your VPS performs. The proper memory and processing capacity guarantee seamless multitasking, quick trade execution, and few delays. Because automated trading requires a lot of resources, you should make sure you have enough hardware power:
- Memory and CPU Power: To properly support your trading strategy and trading bots, look for a multi-core processor with at least 1GB of RAM.
- Network & Disk Speed: Reliable disk performance, low network latency, and fast storage are necessary for speedy trade execution.
- Performance Guarantees: Depending on CPU, memory, and bandwidth usage, several VPS providers provide performance guarantees. Choose service providers who guarantee consistent server performance.
Security Features
To safeguard your private trading information, pick a VPS with robust security features like firewalls, DDoS protection, and encrypted data transfer. To guarantee data protection, look for VPS providers that offer free or automated backup services. Automated backup services ensure your data remains safe and secure.
Simplify Automated Trading with MonoVM VPS
You must first select a VPS provider before you can set up an automated trading VPS. MonoVM VPS with 99.9% uptime, minimal latency, and compatibility with platforms like MetaTrader, offers to execute transactions 24/7 without interruptions. It guarantees strong security with DDoS protection, firewalls, and frequent backups thanks to its more than 30 global server locations. Its scalable plans also make it simple to upgrade resources. Customizing your VPS to fit your strategy is simple with scalable plans and dependable round-the-clock customer service. Simply visit the Monovm website to learn more about our VPS plans. Once you've decided, you can configure it as follows:
- Choose MonoVM VPS: Pick a plan that fits your needs.
- Set Up Your VPS: Use the provided credentials to log in.
- Install Your Platform: Add your trading software like MetaTrader 4 or 5.
- Add Your Bots: Upload and configure your trading bots.
- Test and Monitor: Run a demo to ensure everything works perfectly.
If you want to install a Forex VPS, check our blog post about how to set up a VPS for Forex trading.