Autotrading in Forex
Forex trading involves a high level of emotional stress. Sometimes it becomes a cause of disappointing mistakes. Because of emotions, traders make wrong decisions and suffer a considerable loss. Automated trading allows to avoid it.
What is autotrading?
Automated trading is possible through special programs developed with the help of experienced traders. These programs analyze and process the information they receive from the graphs of technical analysis indicators. Based on this analysis, they make the trade transactions instead of a trader. There is a huge number of such programs and new models of automatic advisors.
Programs operate according to a clear algorithm. Unlike people, they are unemotional, work around the clock, and do not deviate from the specified transaction parameters. In this case, a trader does not need to constantly be at the computer to monitor market movement and make trades. The program makes it for him.
How to choose and install an automated advisor?
To start autotrading, the program must be downloaded and configured according to special trading parameters. It is much more important to choose a good advisor that will improve trading results.
When choosing a trading robot, you should pay attention to the following parameters:
- the statistical profitability of an advisor;
- available trading instruments;
- time intervals of the greatest efficiency;
- the presence of emergency closing in case of unexpected jump in prices;
- clear instructions on installation and configuration of an advisor.
In addition, it is desirable to read reviews about its work in the discussion forums. Special attention should be paid to negative reviews in order to estimate the critical flaws in the program and assess an ability to cope with them.
Disadvantages of autotrading
Along with all benefits of automated trading, disadvantages are also represented.
- Automated trading does not take into account news reports, reports on economic indicators, market rumors, and the other data unexpectedly affecting price movement.
- Trading with an automated advisor, it is impossible to conduct fundamental analysis and analysis of the market moods.
- Advisors are virtually useless in nonstandard situations, since they are created to trade on a specific type of market and act according to a clear algorithm.
- No matter how perfect a system is; it is still necessary to control its operations. Otherwise, automated trading can bring considerable losses in unexpected situations.
Despite all benefits of auto trading, it cannot be fully autonomous and requires control of a trader. Therefore, most experienced traders prefer to make deals on their own. However, automated advisors can significantly help beginners start trading in Forex.