Automated forex trading: Important points to consider

With the massive popularity of technology, even forex trading has its own way to make trading easier and faster. Thanks to automated forex trading system.

Automated forex trading

If you are into FX trading for a long time, you can gauge how much time consuming to study a long list of charts and analyzing them. Perhaps, it is about time considering the help of automated forex trading.  But, before plunging to this type of system, consider these pointers:

What form of automated FX system you are interested to?

Automated FX system is divided into 2 major forms: (1) Fully-automated, and (2) Signal-based system. The former is the robot system and the same with the black box or also known as algorithmic system trading. Since it is fully automated, the system doesn’t need the trader to input orders and instructions because the software does its job automatically as soon as it has identified the current trading market situations. The latter form on the contrast is a system where trader has to enter and exit a forex trade only when there is a signal based on predetermined market situations.

What is the extent of the testing procedure of the software?

Indeed, it is vital that the reliability of the software should be tested thoroughly. Testing it within a period of 3 months upto one year is adequate to check its capacity to produce great results or outputs. Hence, it is advised that trades have to be tested by FX brokers, with multiple accounts, and different foreign currency pairs.

How many optimized currency pairs that the system has?

Only 1 or 2 pairs of currencies are at times optimized by several automated FX systems. Make sure to consider this pointer when choosing the auto FX system because if 1 or 2 currency pairs is what your system can optimize, this limits the trading chances due to currencies’ unpredictability at certain periods. When there are more than currency pairs are being optimized by the system, there will be more trading preferences available to you. Hence, 5 currency pairs or more would be great.

Is the automated trading system user-friendly and simple?

It is important to note the simplicity and user-friendliness of the system when used by either a beginner or a pro. Setting up the system or installing it should be within few minutes and allowing the user to use  and start trading right away.

Above all, while many traders won’t suggest reliance in using automated Forex trading program, it isn’t wrong also if you make use of the program so you can still have quality time to your loved ones and not consume all your time sitting in from of your PC monitoring your account and the FX market.