What is Automated Forex Trading
At its simplest, automated forex trading is when a computer program will trade foreign currencies with the view to making a profit. This is in replacement of a trader doing all the work. The program itself has been created from a set of analyses, which help it to ‘decide’ when it should or shouldn’t buy or sell a certain currency. The analysis of this decision has been set by a human trader, who will set technical rules for the automated program to follow.
The Popularity of Automated Forex Trading
Forex trading – or foreign exchange trading – has been increasing in popularity since around 2007. This is because forex is a very accessible market with lots of trading platforms online. Plus, this market has a 24-hour nature, running every day of the year.
It is this non-stop trading window that has led to the popularity of forex trading robots as, when programmed with the correct technical analyses, these automated traders can buy and sell at any time of the day or night, without you needing to be at your computer screen.
By simulating your own forex trading bot, you are basically putting your own mind and decision-making processes into a computer program. This will then trade 24-7, getting you the best deals and profits that you might have otherwise missed.
Yet these aren’t the only benefits of using a forex trading robot.
The Benefits Of Using Automation
1: Trading 24/7
Yes, it’s been mentioned before, but this is a point that should be shouted from the rooftops. By implementing a forex trading bot, you will have access to the market at all times. No matter if you’re sleeping or it’s your kid’s ballet dance recital, your bot will be working hard to ensure you never miss out. Even the most obsessive of traders – glued to their screens constantly – need to sleep at some point.
2: No Emotions
A trading robot is your best self. You’ve very clinically put your measures into this program so that your bot will execute these orders without emotion, to get you the best profit for your trades. As humans, we can often get bogged down with our emotions, meaning we second-guess every decision we make. This can often lead to missed opportunities and a lot of stress. With automated forex trading, the emotion has been taken away.
When you manually try to backtest a trading strategy, you can find yourself faced with a whole host of problems and challenges. This is all eradicated with an automated system as these will backtest everything for you.
4: Time Saving
For traders, the process is their entire life – they live and breath the market. However, for the rest of us, we don’t always have the time to trade effectively. Whether it’s family life, other commitments or just the idea of sitting down at the end of the day for a relax; when you’re invested in the market you find time can be a real issue. With an automated system, though, you have all the time in the world!
Most of us have a forex cushion, that is, a currency duo that we feel comfortable dealing in such as USD/GPB. However, when it comes to trades like EUR/JPY, we can get nervous or confused. Your automated forex trading system can give you a lot of diversity, trading in currencies that you might never have touched.
Is Robot Software Reliable and Trustworthy?
People can be very wary of robotic software that automatically makes decisions for you. This can be especially worrying when there is money involved. However, keep in mind, that we use automated systems every day in our lives, all without fail.
That’s not to say that every automated system on the market is safe and reliable. Like most things available online, there is always going to be some form of scams and you will need to be careful about which automated system that you choose to invest in. Always look for reviews and recommendations from others in the business and, remember, very few things in life are free. So, if you do see a system being given around for free, there is likely to be a catch somewhere.
Will I Need to Pay Money for Good Software?
For your own safety and peace of mind, it is vital that you choose to invest in a reputable system tool so I recommend checking our best forex robots list first. When you’re investing money in something like forex trading, there is always an element of risk, but by putting your money in the hands of BestFx you can feel secure in the fact that you are investing in a sound system that will help you on the way to a nice profit.
Overall, an automated forex trading system is a shrewd purchase with lots of benefits as long as you invest in a software system that has been created by a reputable source.Read next: Setting up the enviroment