Automated Forex Trading

Automated forex trading robots are one of the fastest growing segments of the retail foreign exchange market. Automated forex trading allows anyone to come up with a strategy to be executed automatically by software. That is, the foreign exchange markets can become your own, personal, and automated, cash flow stream.

But getting to the point of automation doesn’t happen overnight, despite what others may tell you. Instead, automated forex trading is very much a pipe dream for many, and for countless others it is a dream that ends up costing them hundreds of their hard-earned dollars. We’ll explain…

What Can Be Automated
Most people get stuck right here at this step. While automated program can be used to fly a jet, and drive a car, they still can’t understand the minds of several million people. All things considered, that is what markets are: a collection of the thoughts of several million traders, and several billion world inhabitants.

Essentially, automation can include only what is seen on a trading platform. Thus, automating a fundamental strategy is almost impossible as the automated robot cannot read the news, nor can it easily decipher written word and its relation to the markets. In short, these robots are not human, but you probably knew that already.

However, automated forex trading robots can absolutely trade what they see in the markets. Code can be written to spot candlestick patterns, emerging trends, or a combination of each through intricate “if, then” statements. (This is why the most sought after people in the financial markets are quickly becoming computer science professionals and engineers, not financiers or bankers.)

Why Automate?
There is any number of reasons why someone might choose to automate a strategy. It may be for consideration for time, or it may be done to capture more profits by running an automated strategy 24/7. Some choose to automate a strategy so that they can trade while they might be sleeping. Remember, the foreign exchange market is a 24 hour market, thus Tokyo is trading heavily when the United States just begins to lay its head down for the night.

What Should Not Be Automated?
Unfortunately, we find ourselves at a crossroads between the beauty of automation, and the frailty of the believer. There is in the foreign exchange markets few long-lasting holy grails, and chances are that you’re not going to have the first opportunity to buy a “holy grail” trading strategy when it comes onto the market.

Feeding into the forex frenzy, many snake oil salesmen have begun releasing new automated trading programs to the public at prices less than $500, even sometimes less than $100. And believe it or not, these programs are selling like wildfire.

But let us step back for a second and consider such a program. If you had a potentially automated method for making thousands of dollars, even hundreds of thousands of dollars, would you sell it online? Would you publish it?

And why, if you can make money automatically, would you go to the length of setting up a new business, website, and sales team to distribute your insanely profitable trading program? That just don’t make sense. Automatic money, or money that takes hard work. There is a huge contrast between those two.

Automate Your Own Strategies

The Metatrader forex trading platform has an excellent building tool which allows investors to make their own automated strategies. They can build them, back test them, and even future test them to see how well they perform in the market. This makes for good trading.

The retail-level “store shelf” trading programs are most likely not the quality to which to sales pages profess. Be smart, keep your money in your pocket and use it to further your understanding of the foreign exchange market, or your skills in coding. Once you learn how to automate a strategy, you open up the door to make thousands of dollars day in and day out without the help of anyone else.

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