This article looks at the automated forex trading systems, how to use them and who will benefit from them.
When entering the foreign exchange market, you will discover you have the choice of various trading styles. There are traders who prefer a traditional, ‘hands-on’ approach; whereas others prefer to take a backseat and have their trading done for them. All these traders can be accommodated, and it is important you are aware of the different systems to ensure you choose the best style for you.
The automated forex trading systems
The automated forex trading systems are computer programmes based on forex signals. They assist in identifying the best point at which to buy or sell a pre-programmed currency pair based on specific criterion. The criteria set will determine whether the system will be semi-automatic and only monitor the market, or whether it will be fully automatic and trade on your behalf.
The advantage of using automated forex trading systems is that the risk of emotional trading is eliminated. As forex robots have no emotion there is no chance of psychological and emotional factors to present themselves while trading.
The different forex robots
As is mentioned, there are two basic types of automated forex trading systems from which to choose. Each is advantageous, but it is based on a trader’s personal preference as to which one will be used.
1. The semi-automatic forex trading system
The primary feature of this type of trading system is that it utilises complicated software to monitor movements in the market. This allows the robot to identify trading opportunities automatically. Once the beneficial trading opportunity has been established, the robot will release a notification to the trader alerting him of this position. It is the trader’s decision as to whether or not the trade will be executed.
2. The fully automated forex trading system
The primary feature of this robot is its ability to trade on behalf of the trader completely. It presents with integrated algorithms aiding in the detection of appropriate trading opportunities in the market. Once these opportunities have been identified, the robot will trade automatically without alerting the trader of its movements. The trader is required to set criteria and trading parameters beforehand so that the robot is aware of which currencies to trade and the strategy to follow. It is important one set risk prevention techniques in order to prevent any unnecessary losses.
Using the forex robots
When deciding on which automated forex trading system to use, one must take into consideration various factors. These include your level of experience, your trading strategies, your trading requirements and your personal preference toward trading itself. A trader who has experience in forex trading would be comfortable choosing the fully automated option as he will have created a reliable trading strategy. However, the new trader is recommended to utilise the semi-automated trading system as he will not have as much experience in the market.
The use of an automated trading system is ideal for the part-time trader who has alternate time commitments. This allows them to engage in trading sessions and trade on opportunities which they might have missed due to timing difficulties.
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