Automation in trading is every trader’s fascination.
It’s a process in which a computer program executes your trades.
Or give you directions, which you could execute manually.
It operates depending on certain rules.
And generates trade entries and exits.
You can build your own program or buy a reliable one.
Then you can easily attach it to your trading platform like MT4/MT5.
The main advantage is the absence of emotional factors and errors.
And the automated system works 24 hours a day without any tiredness.
It frees the trader from sitting in front of the terminal for long hours.
But if there is any bug in the software, you are prone to incur a huge loss.
Then, backtesting the program is also very important.
It helps you to avoid unwanted results.
How does it work?
It is called robots, expert advisors, or auto traders.
The internal technical system may vary from system to system.
But they operate in the same manner.
Setting up the system in your trading platform takes only a couple of steps.
It works as an add-on to your platform and uninstalling is also an easy one.
Many traders use more than one system to suit different market conditions.
In general, there are two types of automated systems.
They are automatic and semi-automatic.
The automatic system needs no input from you and places trades for you.
The semi-automatic system gives you the direction.
And you can place the trades manually.
The automatic systems come with proprietary algorithms.
These are mathematically based.
And remains the intellectual property of the manufacturers.
You get alerts for your trades, and you can decide your buy/sell.
But, to begin with, test your system with a demo account.
Though there are a lot of scamsters, not all auto trading systems are fake.
Money can be made by using the right auto traders.
Advantages of auto traders
- It works in certain strategies and saves you from emotion.
- A series of losses affect even the experienced trader.
- Alternatively, constant profit-making also induces greed and offsets the strategy.
- So, automating your trading is a really smart way for your forex earning.
- Auto traders do technical analysis for you and give you precise signals.
- And auto traders work 24 hours a day.
- It’s a handy tool for newbies also, who don’t know the market fully.
How to choose the right one?
There is no one way to choose the right one.
Read the reviews.
Professional as well as user reviews.
Backtest the auto trading system with historical data.
Also, know the manufacturer thoroughly.