What is automated Forex trading?
Automated trading is a way of making trading easier. Thanks to it, you can close transactions 24 x 7. Moreover, the process automation takes up the most load off the person: physical, psychological, mental. This trading type offers the trader huge opportunities allowing him to increase his income. Special software is used to automate the process. These are advisor robots operating according to set algorithms.
It should be noted that trading automation does not exonerate the trader from the full responsibility for the occurring process. The use of robots needs to be associated with close control on the part of a person. Otherwise, you are risking losing most of your deposit. Despite the risks, robots enjoy great popularity not only among beginners but experienced market players too.
Automated trading system: advantages and disadvantages
Forex market beginners often make mistakes resulting in big losses and disappointment. Because of the lack of experience, the deposit quickly decreases, and the desire to trade sweepingly fades away. How trading automation can help in this situation? Let's talk about the advantages and disadvantages of robots.
The major advantages of robots are:
- No emotions. Advisor's actions are based on a thoroughly calculated algorithm while the person often makes mistakes because of fatigue, excitement, fear, and other strong emotions.
- No need for an in-depth market study. The trader can rely on the algorithms built in software. To get profit he doesn't have to plunge into the nuances of trading. Nonetheless, you should have some basic knowledge.
- High-rate decision-making. The robot can close transactions for split second. It doesn't need time to think over its steps and make a decision.
- A wide range of software. It's possible to find an advisor to fit any need. You can also find 100% free software.
Despite the discernible advantages, automation features drawbacks too. Its greatest disadvantages are:
- Impossibility to consider fundamental factors. Because of the lack of logic, the software cannot consider data to the full, for example, news headlines or a political situation within a country.
- The high price of some apps. The price of some robots reaches several thousand dollars. However, this doesn't guarantee a high income.
- Need for continuous monitoring. It's necessary to continuously monitor the app operation, change settings, carry out optimization.
The lack of human intelligence is the main drawback of a Forex advisor. The software makes solely standard decisions built into its algorithms. It cannot be guided by the current factors and make a decision like a man can. Despite these disadvantages, advisors will be helpful to both beginners and experienced traders.
Automated trading with advisors and robots
Automated Forex trading is built on using special advisor software. All advisors differ from each other in the algorithms and parameters used. Robots are being selected individually according to the needs of every market player.
Automated software can be divided into two large groups:
- fully automated.
- Semi-automated.
Fully automated advisors can replace the human factor to the full. They can not only find signals but open and close transactions too. Semi-automated bots need more close control from a person. In this case, the trader makes a decision on closing transactions.
To start using the possibilities of automated Forex trading you need to download the corresponding software and install it. Also, it is highly important to puzzle out the nuances of the app and get to know the main principles and notions of the currency market.
What you should know about trading automation
The hardest thing in automated Forex trading is choosing a good and high-quality advisor. There are lots and lots of options, which differ in operation type and principle, algorithms, decision speed. If a certain software fits one trader, it doesn't mean that it will fit another one. Before using a robot, it should be tested without fail. To this end, there is special testing software.- It is important to realize that all software differs not only in settings but in price too. The more high-quality and reliable the advisor is the higher its functionality, and the higher its price. However, a high price doesn't necessarily guarantee a high profit in trading.
- If you take your first steps with robots, use a demo account. This way you'll deal with settings and keep your money safe and sound. Proceed with real trading as soon as you master all the intricacies and nuances.
- When using automation you cannot fully remove the human factor – that's the main rule. Any software needs settings, activations, updating, etc.
- Creating your own program will make sense for experienced traders who have their own strategy bringing income. For a beginner, writing an individual program will be unviable.
When choosing software make sure to learn its nuances. Make sure it has high-quality client support, upgrades, and updates.
Where to download software?
Finding a bot for automated Forex trading is much easier than it appears on the face of it. This software may be paid and free. Many people think the more expensive software, the better, but it's not always the case.
You can look for a free Forex advisor on the internet or specialized platforms. Moreover, some brokers provide software for auto trading for free. This is an optimal option for those who are looking for a freebie.
If a broker provides non-operational software, it will immediately hurt its reputation. That's why most free bots from official brokers are properly functioning.
It's much easier to buy a bot for the exchange market for the money. You can do it with any developer. Besides, the internet has platforms, which offer software for trading automation. However, in this case, you should realize that good software just cannot cost little. Pay attention to advertising offers. If a seller promises whole mountains of gold, a huge profit, you have to shake your head at his words.
It's very convenient to buy software for auto trading from companies providing the option for return if you are not satisfied with the advisor's results within a trial period. In this case, you'll be able to get all your spent money back.
To get an extra point of view study the reviews of real clients, and users. Give an eye to not only positive but also negative ones too. This will help you assess the advantages and disadvantages of an application.
The last option is to learn a software language and create a bot on your own. However, this is too long and not always efficient. It will be easier to use already developed apps and get income from automation. Remember: the right approach to automation is the key to successful trading.
