Forex Auto Trading
With the world of forex trading being based around facts and figures, trend and patterns, it was only a matter of time before automation was introduced into the market. This is now a widespread phenomenon with both novice and experienced traders taking advantage of the technology.
There are thousands of different automated forex trading systems now available, with each promising to guarantee the dealer untold riches. However, the most salient point to bear in mind is that even with an automated system, the market is still the same. It is still unpredictable, fast-moving and difficult to trade in. Whilst automation can undoubtedly bring some benefits, it cannot change the fundamentals of trading and guarantee gains. Unfortunately.
Any Fx automated system is only as good as the data entered, but more expensive systems are not necessarily better. Overcomplicating things can sometimes lead to greater potential for problems, which translate as greater potential for losses. One of the key components to look for in an automated system is the designer. Whilst coding experts will undoubtedly be involved, the best trading systems and really the only ones that should be considered, are backed up by veteran traders. Traders know what other traders need; a system designed solely by computer experts is unlikely to have the key elements which can give an investor the edge they are looking for.
Forex Auto Trading Systems
The benefits of forex auto trading systems, or forex robots as they are also known, are many; defined dealing parameters which operate even when the trader is away, no risk of chasing losses and no lost opportunities because the trader had to nip to the bathroom!
However, there are also downsides to automation, as well as the potential cost of purchase. Machines are only as good as the instructions entered and do not have the ability to interpret and correct a clearly incorrect order. There are many stories about automated systems wiping out experienced dealers` accounts whilst they were away, solely due to a misunderstanding in the entering of instructions. Also, technical faults can play their part too. With forex trading relying on up to the minute information, if the forex robot breaks down or there is a problem or lag with the internet connection, the consequences are devastating. Whilst many manufacturers would cover any issues caused solely by the actions of their automation, proving the fault lies entirely with them can be problematic and without this, no claim can be made.
The main issues with automation, providing the correct model is purchased and played with in demo mode extensively before going live, seem to occur when the trader goes away for extended periods and leaves the automation running in his absence. If the trader is available in the background, regularly monitoring activity, the potential for problems is much less. In these scenarios, the automation frees up the dealer to work on other aspects of his trade, such as keeping up with forex news whilst still remaining active in the market.