Automated Forex trading systems are used to analyze the Forex markets based on strategies and methods that are utilized by successful forex traders. Automated forex trading systems combine a mix of of artificial intelligence, technical analysis such as Fibonacci, pivot points, custom indicators, statistical and inter market data. This translates to the automated forex trading system in identifying ideal trading opportunities and adapt itself to actual market conditions.
The ease of forex trading online has now made it possible for forex traders at all levels to make use of and take advantage of automated forex trading, which is fast gaining popularity amongst both new and experienced forex brokers.
One of the biggest advantage of automated forex trading comes from the fact that it eliminates the need for endless hours of research to identify potential trading opportunities in the forex markets, thus giving the forex trader more time to focus on the more important trading opportunities instead.
Automated forex trading makes it easy for a forex trader at any level to get started and profit from the forex markets. You don’t have to be experienced in programming, as most of the automated forex trading platforms come with detailed user guides to help you how to get started with automated forex trading.
Of the various automated forex trading tools available there are lots of choice, these include commercial forex trading robots, automated trading platforms as well as tailor-made trading algorithms to suit the trading needs of the forex trader.
Automated Forex Trading – Robots
There are many forex trading robots available in the market today that are priced from $50 and can go high as they get more advanced. Despite the initial costs incurred with using forex trading robots, the biggest advantage is the fact that most of these forex trading robots tend to pay for themselves in a short period of time when used appropriately.
Most of the forex trading robots are built for the PC and compatible with the widely popular MT4 and MT5 trading terminals, which are supported by more than 90% of the forex brokers. Traders who make use of forex robots usually use the tools in tandem with a remote VPS server to avoid any downtime or server lags when trading forex online.
Automated Forex Trading – Signals
Most forex signal providers also offer a feature where traders can automatically implement the forex trading signals directly into their trading platforms. This is usually done after a certain evaluation period of time where the forex broker takes the time to check out and monitor the signals performance before implementing it in auto mode.
Trade signals from automated forex trading is usually factored in with some risk parameters from the trader such as position and size, for example. The auto signal service then executes trades in your account without much trader intervention based upon the signals being generated.
In most cases, automated signal trading also involves manual approval in case traders wish to manually view the signals before implementing them.
Automated Forex Trading – Custom Algorithms
Customized trading algorithms is one of the advanced automated forex trading for the more experienced forex traders who are adept at complex trading strategies. This is usually not recommended for novice or beginner forex traders as inexperience can be a hefty price to pay.
The customized trading algorithms is made possible by the scripting language MQL which is used in the MT4 or MT5 trading platforms.
Most forex brokers these days offer all if not most of the above automated trading features.
AvaFx, an ECN forex broker, besides offering free VPS services allows for traders to make use of EA’s and signals on the AvaFx MT4 trading terminal.
LMAX Exchange allows traders to request one custom trading algorithm besides the use of automated trading platforms.
Automated forex trading – A new concept
Automated Forex trading although a relatively new way of trading on the Forex markets basically involves factoring in the various trading strategies and market conditions which can be automatically be left to manage and execute trades on your forex account.
With the automated forex trading system, a trader has to simply setup the system and leave it to trade. This eliminates the requirement to study various complex charts or make any trading decisions. The automated system performs all the necessary trading calculations in line with the pre-programmed strategy. All you need to do is book any profits made.
Now while this sounds too good to be true it is in fact a very real and potentially profitable way of trading the markets.