Benefits Of Automated Forex Trading
More than just a game
Trading is more than an investment. Trading is a special train of thought that teaches you to pay attention to nuances, look at ordinary things in a non-standard way, calculate everything that can be calculated, and ultimately take what you deserve.
But what you deserve is up to you. Your result depends on how much you spend time and how deeply you understand the topic. This article will help you delve into automated trading, which will open up new opportunities for you.
What is automated trading in Forex?
When we talk about Forex and even when we read articles on this topic, a term such as automated trading is often found. It's time to figure out what it is and why it is so often spoken and written about. This article is a conclusion drawn from dozens of automated trading reviews. So, let’s start our exciting Forex adventure.
Automated trading is a trading system based on algorithms and special formulas that generate buy and sell signals. In simple terms, automated trading saves you time, and in fact, is your constant advisor.
Agree, when it comes to investments, we all often don’t have enough timely advice. Well, now you have a unique opportunity to receive advice based on accurate algorithms that can always be used with a high probability of success.
Nevertheless, the probability of success is far from 100%. When we talk about trading, it is difficult to be absolutely sure of what is happening, because trading consists of many nuances that change unpredictably. Changeability is a given of any trader, and you’ll either learn to adapt to this or lose.
This article is written for those who do not want to lose. The more knowledge you have, the less likely you are to lose money.
Therefore, we continue.
How does automated forex trading work?
It’s not a secret how much time is spent on analysis and forecasting. It also takes a lot of time to open and close deals, which in fact are mechanical actions that inspire boredom and nothing more.
Now imagine that someone is doing this for you. Did it? Great! Because now you know how automated forex trading works.
- Everybody asked a
- Each trader at least once asked himself a question, does automated trading work for real? Of course, it works. Another question is how well it works and can you rely on it?
- Automated trading is not a guarantee of successful deals, because nothing can guarantee you that. Nevertheless, the percentage of successful deals is quite large, but it depends on what to compare.
- In the modern world, money means a lot, but the most expensive currency is time. Automated trading allows you to earn time by performing mechanical actions for you. Are these not benefits of automated forex trading?
How much do you have to pay?
You will need only $6 to buy an automated trading system. Is this a good investment? Of course, given how much profit theoretically you can bring the implementation of this approach.
For only $10 you can find an improved version of the same system. And if you buy it for $100, then your chances of success will increase many times, because the algorithm of this system will include additional functions that will contribute to more accurate calculations.
By investing in such an insignificant amount, you increase the chances of making money on transactions. This system will do all the monotonous work for you, giving you the opportunity to do only really important things. This will help you grow as a professional trader. You’ll see how easy it is for you to master new levels of understanding of processes, which so far may remain invisible to you only because your attention is focused on small tasks that take away your time and energy.
There is another way to get a system that will be created specifically for your needs, considering individual characteristics. To do this, you need to hire a programmer who will create this system for you and then will be engaged in its support.
But the cost of such work can reach up to $10,000. Think about it, maybe $100 for a ready-to-use system isn’t such a big price?
Is automated trading profitable? Well, here is some more evidence that it DO works.
Benefits of automated forex trading
It’s about time to discuss the benefits that you’ll get if you decide to take advantage of automated trading systems Forex. To know what the advantages of different approaches are is a force that helps to conduct more and more successful transactions.
The most obvious advantage is that your negative quality, such as emotionality, which is inherent in all people without exception, will disappear from your transactions. Of course, you may think that you are in control of your emotions. But is it really so?
Remember, were there deals that didn’t work out just because of emotions? Each trader has several similar deals, and a trader who says that this didn’t happen to him only learned to lie well about it.
So, the most obvious advantage of automated trading is the lack of risks associated with emotions.
Before you start using this approach, you have to set up indicators. Indicators are tested on historical data or on real-time data, with reference to a specific currency.
This testing can be done both on a demo account and on a real one, the only difference is whether you want to risk money or not. And yet this step is very important. Let's be honest, in the modern world without debugged indicators, successful trading is not possible. Therefore, take the time to adjust the indicators as best as possible. This will bring you many pleasant moments soon.
Of course, the automated Forex trading system is famous for the speed of task execution. It’s unlikely that even a long-term trader is capable of such a pace. If a person needs time to make a decision, then the machine doesn’t need time at all. The machine decides in a split second. And this is the huge advantage of the machine over any man.
This system can conclude several transactions simultaneously. Is there anything worth clarifying here?
Any person, even an avid workaholic, needs a break for sleep or for lunch. We all get distracted from time to time to answer the phone or just have a cup of coffee when we are tired.
But the machine doesn’t need all this. The machine is able to function around the clock, and at the same time give an equally good result.
In this case, any person cannot compete with a machine because of domestic needs and fatigue that appears to each of us after a hard-working day.
The working day of the machine is an eternity, and even eternity won’t make it tired unless it’s out of date, but that’s another story.
- Emotions will no longer make you risk it
- The indicator is the best friend of a successful trader
Speed is what saves you time
- The simultaneous execution of different tasks
Disadvantages of this method
Despite the fact that automated forex trading strategies exist in large numbers, this approach still has its drawbacks.
The biggest drawback of automated trading systems is that it cannot determine if the market is trending or not. It’d be great if there was a system capable of determining this, but, alas, at present it has not yet been invented, although many have already tried a lot of times to do this.
However, this drawback doesn’t overshadow all of the many advantages that have been briefly discussed above.
Like any system, automated trading systems are not perfect. Should you use it? You definitely should try this, but whether to use it on an ongoing basis is up to you.
If you share the idea that time is more expensive than money, then you’ll like this approach, because you’ll have more time, since you won’t have to perform mechanical actions anymore.
Definitely, this topic is worthy of attention. This article began with the words that this topic is too often touched upon when it comes to trading. And it’s not just that, is it?