Manual Forex trading systems can be time consuming to implement and rely upon the traders ability to react effectively to any signals generated. Often they will require intense periods of ‘screen watching’ while looking for trading setups and invariably will provide a signal the moment you look away. Furthermore it is also common for manual systems to miss out on big market moves, particularly those systems that trade at set times.
Even when a signal is acted upon, many traders will fail to trade the system correctly. Entering trades late and exiting them early are two common trader errors. The rules of manual systems are open to manipulation by the trader. Often traders will hold onto positions, waiting for turn round in their favour. Or even worse they will lack the nerve to hold onto profitable positions.
These are difficult aspects to address and in most cases would actually benefit from less involvement from the trader themselves.
Automated Forex Software can provide a solution to some of these issues. It does not require the trader to be present or even to make any trading decisions. Instead the software is able to automatically make trading decisions in the markets on behalf of the trader. Once the system is installed it can be left to trade on the account with no further intervention by the human trader.
Automated software is designed to handle all the required trading strategy transactions via its internal calculations.This will allow it to automatically open positions within the market when the specific criteria of the underlying strategy are met. Similarly when the predefined exit criteria of the strategy are met, the system will be able to instantly exit any open positions.
Due to the way in which they trade, automated Forex software is sometimes referred to as ‘Droids’ or ‘Robot’ trading. This reflects the lack of emotion that this approach brings to the trading process. Automated trading software simply trades in line with the preset trading strategy criteria.
A further benefit of this approach is that it allows trading to take place 24 hours a day. This not only extends the trading period allowing more opportunities to taken, it also means that any big moves outside of your usual trading time frame can be capitalized on. By increasing the time frame for trading you are also increasing the potential to generate profits.
The requirements for using automated software are low and will already be met by most trading setups. All that is needed is the software itself and an online connection to your Forex broker to enable the automated system make transactions in the market.
While automated Forex software will vary in its objectives and trading strategy , it is designed to be easy to implement and understand. So for most, adding one or more automated trading systems to your strategy is a quick and easy way of opening up your Forex trading to another avenue of profits.