Glossary
Automated trading glossary
The terms that come up when talking about Expert Advisors and automated trading, explained without jargon. Each entry stands alone: you can read just one.
- Expert Advisor (EA)
- Automated trading software installed on MetaTrader 5. It operates independently according to predefined AI logic, with no manual intervention during operation.
- MetaTrader 5 (MT5)
- Professional trading platform developed by MetaQuotes. It supports CFD, Forex and Commodity. It is the platform on which the Softi Bull Expert Advisor is installed and managed.
- VPS (Virtual Private Server)
- Remote server always online 24/7. It keeps MT5 and the Expert Advisor running even when the user's computer is off, ensuring operational continuity.
- CFD (Contract for Difference)
- A derivative financial instrument that allows you to speculate on the price movement of an asset (currency, commodity, index) without owning the physical asset.
- Multi-asset
- Simultaneous trading on multiple financial instruments (up to 38 across Forex and Commodity). It distributes risk across different assets instead of concentrating it on just one.
- Strategic AI
- First AI layer of Softi Bull. It analyzes the markets, identifies the operating conditions and defines the overall strategic direction of the system.
- Operational AI
- Second AI layer of Softi Bull. It manages the actual execution of trades: opening and closing timing, sizing and instrument selection.
- Balancing AI
- Third AI layer of Softi Bull. It monitors the overall portfolio exposure and offsets losses on some assets with profits on others, keeping the balance.
- Dynamic Stop Loss
- Automatic closing level for a loss on an individual trade, calculated and adjusted in real time by the AI based on market conditions.
- Dynamic Take Profit
- Automatic closing level for a profit on an individual trade, optimised by the AI to maximise the gain without staying exposed too long.
- Autocompound
- Automatic reinvestment of profits into the operating capital. Earnings progressively increase the volume of future trades, amplifying growth over time.
- Automatic scaling
- Automatic reduction or increase in the number of active instruments in proportion to the available capital. With less capital, fewer pairs are traded; with more capital, all 38 instruments are used.
- Internal balancing
- AI mechanism that manages the portfolio's overall exposure by offsetting losses on some positions with profits on others, so as to maintain operational stability.
- Conservative mode
- Operational configuration with reduced exposure: fewer active pairs, contained lot size. Suitable for those just starting out or who prefer more prudent capital management.
- Balanced mode
- Balanced operational configuration. Uses all 38 instruments with AI balancing at full capacity. Recommended with capital ≥ €10.000.
- Aggressive mode
- Configuration for advanced traders with capital at their discretion. Higher trading frequency and customizable parameters. Requires market knowledge and active risk management.
- Spread
- Difference between the buying price (ask) and the selling price (bid) of an instrument. It is the main cost of every trade and varies by broker, asset and market conditions.
- Leverage
- Capital multiplier to open larger positions. With 1:100 leverage, 100€ control a position worth 10.000€. It amplifies both potential profits and losses.
One definition isn't enough for you?
If a term remains unclear, write to us: we reply within 24 hours. And if you want to understand how these concepts become real operations, the Softi Weekly column explores them one by one.