Forex Automated Trading: Cut your Workload in Half
Forex automated trading means even professionals with packed schedules can easily manage a career trading Forex on the side. The emergence of forex automated trading has had a truly profound impact on the market with the number of people trading Forex doubling in the last ten years.
What is Forex automated trading?
Automated trading means using computer software to buy/sell currencies automatically when market conditions seem appropriate. Most Forex brokers provide their clients with Metatrader 4. Metatrader’s ‘electronic advisors’ system makes automated trading a breeze. Simply tell the advisors when you want to buy/sell a certain pair and orders will be placed automatically with your broker.
How do people define the parameters for their automated trades?
Adherents of automated trading rely on certain currencies or commodities behaving predictably in relation to each other. For example the price of gold had always been intimately related to the value of the US dollar. So in theory a good strategy would be to have your system buy up gold when the value of the US dollar starts to fall. Algorithmic traders attempt to identify patterns such as the ones outlined above. Of course the more subtle the pattern the greater the gains as your trades are less affected by those of other traders.
What are the benefits of automated trading?
Automated trading means traders have more time to concentrate on hammering out truly effective strategies, as opposed to spending the whole day on the phone trying to place orders in a busy office in New York City.
Automated trading means that busy traders won’t be caught at unawares and suffer a loss if they can’t get in front of the computer at the right time. It also means they won’t miss out on a win for the same reasons. Automated trading requires just as much work as traditional trading, but the work goes into something more valuable: understanding the dynamics of Forex trading.
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