As a Forex trader, you will know how exhausting trading can be, especially if something goes wrong. There are traders who dream of a partner who is intelligent, not exposed to emotions, logical, always looking for profitable trades and who can execute trades almost immediately.
If this is something you’re looking, then we should tell you that these qualities above describe Forex automated trading software.
A wide variety of such programs are easily accessible. Their primary task is to function without the presence of the Forex trader by scanning the market for beneficial currency trades, utilising either pre-established parameters, or parameters designed and then programmed into the system by the user.
In a nutshell, with automated software you can turn on your PC, activate the program and then walk away while the software trades instead of you. This is the basic principle. The purpose of our article is to tell you more about the aspects of automated software, so that you will be able to choose the best automated Forex trading software in accordance to your needs.
Who can use automated software and how does it work?
Hypothetically, newbies, experienced or veteran Forex traders might benefit from using automation software to make their trading decisions. In fact, the software comes in a wide range of prices, as well as levels of sophistication to meet different needs.
Online customer reviews of such FX programs will reveal their virtues and flaws. Most often, programs offer a free demo period along with other incentives to buy. Other sellers may provide a free demo model in order to get the user acquainted with the program.
One of the positive aspects of Forex auto trading software is that themarketing incentives to buy specific packages might provide extra tools for trading. Nonetheless, those programs are far from infallible – and the trader should be aware that the use of automated software does not 100% guarantee an infinite amount of successful trades.
Let’s look at how this type of software actually works. Automated Forex trading software is a PC program that analyses currency price charts, as well as other market activity. It determines the signals, encompassing spread discrepancies, trends in price and news that may affect the market, in order to locate potentially beneficial currency pair trades.
For instance, a software program will utilise criteria the user sets, determine a currency pair trade that satisfies the predefined parameters for profitability, and it will broadcast a purchase or sell alert. On this alert, the software can be programmed to automatically carry out the trade.
The advantages of automated software in Forex
Although we do not recommend any automated Forex software, it is still important to outline the upsides of it. A key advantage is the removal of emotional and psychological influences when identifying what to trade. Automated software makes your trading decisions consistent and completely unemotional, exploiting parameters you have pre-defined, or the default setting you have previously installed.
Novice and even experienced traders might sometimes make a trade based on some psychological trigger that disobeys the logic of market conditions. With automated trading, different human lapses of judgement just do not happen.
Furthermore, for currency speculators who do not make trades based on interest rates but rather on particular currency spreads, auto Forex trading software can be effective enough. This is because price discrepancies are instantaneously apparent, the information is immediately read by the trading system and consequently a trade is executed.
In addition, other market elements might trigger buy or sell alerts, such as moving average crossovers, chart configurations (like triple bottoms or tops, or other indicators of support or resistance levels). Additionally, automated software programs also enable traders to manage multiple accounts at the same time, a real plus not easily available to manual trades on a single PC.
For serious Forex traders who have other interests, occupations or obligations, automated software or an automated Forex trading robot saves a considerable amount of time that they could otherwise have devoted to studying the markets, analysing different charts, or watching for various events that somehow influence currency prices.
Automated FX trading systems allow the trader to free themselves from the computer monitor, whilst the program scans the market looking for trading opportunities – and therefore, makes the trades when the conditions are right. This implies that day or night, the program is constantly at work and needs no human supervision.
The best way to learn automated trading systems is to watch our free live webinars. There are a lot of practical tips and insights in there, suitable for both beginners and traders looking for something more in-depth.
Choosing your automated FX trading program
Although not all programs on the Internet operate well, there’s a good chance you’ll find something useful, perhaps even the best Forex auto trading software.
However, some firms advertise to have a very high percentage of winning trades. You should be cautious. Such advertising claims must be verified. In fact, the best software publishers will undoubtedly provide authenticated trading history results in order to show the effectiveness of the programs they are offering. The golden rule is to understand that the past performance is not a warranty of positive future results.
Define your needs
Since automated trading systems vary in swiftness, performance, programmability and complexity of use, what is good for one trader, might not be good for another. Some Forex traders will want to have a program that generates reports, or imposes stops, trailing stops and other particular market orders.
An essential item in any automated system or automated Forex trading robot is the real-time monitoring. Other traders, such as beginners, or those who are less experienced, may want a simpler program with a set-and-forget feature.
Moreover, remote access capability is vital if you travel often, or intend to be away from your PC for a long time. Therefore, your program should allow access and functionality from any current location through Wi-Fi or any other internet access. A web-based program can be the most useful and practical method of serving the trader and his needs.
It is important to outline that virtual private server hosting, or VPS, is a service worth considering for the prudent Forex trader. The service, sold by different companies, provides immensely fast access, isolates the Forex automated software for security purposes and also offers technical support.
Furthermore, some firms tend to charge extra fees and trading commissions. In turn, other companies claim not charge any fees or commissions. Commissions and fees can draw down your profitability, so you should carefully check your user contract.
In addition, the top firms offer programs with different return guarantees. After buying and during a fixed period of time, if the user decides the program is not good enough, then premier firms will permit you to return their automatic Forex trading software for a refund.
How to test the software
Some firms provide video content of software programs functioning in the market, purchasing and selling currency pairs. If there are screenshots of account action with trade prices for buy and sell transactions, time of profit posting and execution – then you should check them out before committing to anything.
While testing new Forex automatic trading software, run the tutorial or any other training function in order to see if it is appropriate and answers all of your questions. Additionally, you may have to call the support desk for answers to complex questions about programming, like the buy-sell criteria, and exploiting the system in general.
If a help link is offered to you, then check how easy is it is to navigate and whether it’s of any use. Some of your questions might not be answered through information in the help section and knowledge base.
Most often, the majority of the leading firms will also offer a free, non-obligatory test of their automated Forex trading robots, so that the potential customer can see if the program is a good fit. In such a situation, test to see if the program can be installed easily, and ensure that you do not have any difficulties with understanding and using it. Moreover, ensure that the software is programmable and flexible so that you can change any pre-installed default settings.
Main points to consider while choosing automated software
The majority of the most popular auto Forex trading software will actually trade the leading currency pairs with the highest volume and most liquidity. These will include USD/EUR, USD/GBP, USD/CHF and USD/JPY.
Trading methods will vary from conservative – with programs designed for scalping a few points in a trade – to a more adventurous trading strategy with risks. The user decides which approach to use, and the strategy may be adjusted in each direction. You should read customer product reviews that are posted online before purchasing, as they are a good source of information about the automated currency trading software.
Price competition currently favours the consumer, so shop around for the best deal, but do not sacrifice quality for price. Prices for trading packages can range anywhere from hundreds of dollars to thousands.
Lastly, look for a high level of service and technical support. This is crucial for Forex traders at any level of experience, but is especially significant for novices and newbies.
It does not matter what level of expertise you have in Forex trading. Whether you are a beginner, experienced or veteran trader, Forex trading automated software can help you. There are always potential dangers when trading in any market – and it’s the same with software. There are a lot of scams on the internet. Fraudulent software can be avoided by conducting due diligence on any company.
It is vital to understand, that no Forex automated software can guarantee a 100% rate of winning trades. It’s also important to remember that past performance does not guarantee success in the future.
Before you dive deeper, it is in your best interest to learn in safe, risk-free environment. Speaking of which, take a look at our free demo accounts – the easiest way to learn the basics of Forex trading and polish your skills as a trader.