Let Your Money Work for You with Automated FOREX Trading

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It is Absolutely advantageous to do FOREX trading the easy way:

through automated FOREX trading systems.

What is automated Forex trading all about?

Automated Forex trading is an option you have when you regist for an account on a Forex trading Company and chose a trading platform. It enables you to automate your forex trading to various degrees (up to 100% if you wish) and relieve you from the routine of having to continuously monitor the forex market.

Why would someone want to automate the forex trading process? There might be several reasons for forex traders to apply for Automated Forex trading. But the two most common reasons among forex traders are: to take the emotions out of the forex trading game and to never have to miss a forex trade again.

Automated FOREX trading is exactly what it sounds like. A highly sophisticated and complicated computer program uses mathematical algorithms to determine when to buy and sell currency, and it makes the forex trades for you. You put an initial investment into the account, and then let the system do all the work for you.

It may sound risky to let a computer program choose when to buy and sell currency for you, but Automated Forex trading can often be safer than doing it yourself. Humans are subject to error, to misreading charts, and to overlooking data. Humans can also let their emotions get in the way of making smart decisions, like the gambler who loses everything because he just can’t tear himself away from the blackjack table.

An Automated Forex trading program has none of those flaws. With the Automated Forex trading software doing it for you, it’s as if you were always watching every market, noticing every trend, instantly analyzing all available data, and making the smartest decisions.

There is a cost for Automated Forex trading, of course. Most forex brokers that offer Automated Forex trading require a minimum investment of several thousand dollars or more, and they may charge a fee on top of Automated Forex trading.

But the benefits of Automated Forex trading can be great. Whereas manual trading requires an investor to study the market intensely before jumping in to it, Automated Forex trading requires no training at all. Learn the very basics of how the market works so you can tell what your Automated Forex trading system is doing for you, and that’s it. Sit back and let Automated Forex trading make your money work for you.

Automated forex trading is also useful for companies and other institutions that want to diversify their assets but don’t have the time or resources to devote to FOREX trading. If a computer program can do it for you, there’s no need to have one of your employees handle it, right?

It goes without saying that automated forex trading systems rely on technical analysis rather than fundamental analysis. That is, the algorithms examine past market performance and general trends and base their trading decisions on that, not on external factors such as politics and environmental concerns, which may affect a nation’s currency. Nonetheless, automated forex trading has proven to be highly effective and accurate for many investors, freeing up their schedules to focus on other things.

When looking at automated trading solutions, four possible options are available:

1.  Automated trailing stops.
2.  Email alerts when technical analysis conditions are met.
3.  Fully automated forex trades execution.
4.  Backtesting forex trading strategies on historical data.

Automated trailing stops.

The first step towards automated forex trading is the automatic trailing stop function in forex trading platform. It is a very useful tool to manage your open positions especially when you are not in front of your computer.

How does it work? Using your mouse, simply right click the position in the trade terminal you want to set an automated trailing stop for and select the number of pips that you want your stop to be adjusted to. As an example, if the automated trailing stop were been set at 25 pips, as soon as the market put your position in a 25 pips profit situation, your stop will automatically be brought to your entry level (breakeven point) and will, from that moment on, follow the market into the profit zone.

Email alerts when specific technical analysis conditions are met.

The second option you have in terms of automated forex trading devices with automated forex trading platform is the email alerts function. This is very handy when you do not wish that the system executes trades automatically for you but rather prefer to receive an email notification (on your cell phone for example) when all of your forex trading strategy's conditions are met. That way, you go to your computer only when you know that there is something valuable happening. The rest of the time... you are free.

Fully automated forex trades execution systems.

The third option that automated forex trading platform offers is the ability to completely automate the trading process from A to Z. It means that using a function called Expert Advisor, you wouldn't have to trade by yourself anymore if you wish. The platform does it for you (don't worry, you can turn this function on or off as you please, so you stay in charge). 

Actually, automated forex trading platform is designed to allow you to run computerized scripts (expert advisors) that will not only monitor the market in real-time 24 hours a day for you, but will also recognize the trading conditions written in the script, place entry orders with stop-loss and profit limits and manage the trade until completion usually using trailing stops.

What is a Forex Expert Advisor?

It is an automated forex trading system (ATS) written in specialized language MetaQuotes Language II (MQL II) and linked to a particular chart. As we said earlier, a Forex Expert Advisor is able not only to notify the trader of the forex trading opportunities, but also to automatically execute forex trades on the forex trading account, sending them directly to the forex trading server.

In effect, the Forex Expert Advisor is a revolutionary forex trading tool that allows forex traders to either program their own forex trading strategies or use other people's forex strategies.

Writing your own Forex Expert Advisor is possible: to do it, you don't need to be a professional programmer, you only need to learn to use a simple language - the MQL II.

If you are not able to write the script for your Forex Expert Advisor by yourself, or have no interest whatsoever in doing it, you can always ask some Automated Forex Companies to do it for you. Some Automated Forex Companies offer programming services for customers who do not not wish to learn the Expert Advisor programming language.

Backtesting forex trading strategies on historical data.

Forex Expert Advisors are used to automate the forex trading process but they can also supports the testing of strategies with historical data, with the trade entry/exit points visually represented on the charts and a complete performance report with % of winning trades vs losing trades, etc. This is very useful to determine if a forex trading strategy would have been profitable in the past and, therefore, if it is worth trading for real.  

More Forex Trading Articles:

Forex Alerts are a handy way of staying on top of the market

The Forex market uses Margins to increase your profits

Trying to forecast rates is an acquired skill

What to watch for when reading a forex book

 

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