You have the choice of trading on the forex market in a number of different ways. Some traders enjoy the hands-on approach to trading while others want to do as little actual trading as possible. There are other traders that want to trade, but do not want to spend time analysing the market. There are a number of options available to these traders, including automated forex trading systems.
Automated Forex Trading Systems
These are computer programmes that are based on forex trading signals which determine the best time and price to either buy or sell a specific currency pair. This method is designed to eliminate the psychological and emotional elements that exist with human trading. Since robots have no emotions and traders do, it is logical to assume that the robot will not be affected by human emotions. As a trader you will be able to select criteria for the robot to execute either semi-automatically or automatically once your specified criteria have been met.
Types of Robots
There are generally two main types of FX robots to choose from, the semi-automatic and the signal-based FX robot. They each have their own unique features.
- Fully automatic FX robots
These robots are able to basically take over trading from the trader and trade automatically. It has integrated algorithms that aid in the detection of suitable signs for investment in the market, and executes the trade automatically. There is no intervention by the traders at all as the robot undertakes the trading automatically. The trader is however able to modify criteria and parameters regarding the robot’s configuration and the normal risk exposure.
- Semi-automatic or signal-based FX robots
The main feature of this type of robot is that it is uses a complicated programme to monitor market movements and to identify opportunities in the market automatically. Once it identifies opportunities that are good for the trader, it will emit a signal to advise the trader. It is up to the trader whether they wish to purchase or sell based on the signals.
Which Robot To Use
Traders have different needs, levels of experience and will choose different types of FX robots based on their personal criteria. A trader who is experienced in his field and who, over a period of time, has developed a reliable set of strategies will more than likely choose the automatic version. This type of trader should make use of a suitable programmer to code his desired strategy into a FX robot of his choice.
The traders who find themselves short of time to efficiently monitor and trade in person may find that the best way forward for them is to choose an automated robot system. Once again, it will be best to appoint a suitably qualified programmer to assist with the coding of the trader’s strategy into the robot.
Foreign currency traders who wish to make the final decision on whether they purchase or sell trades, but who do not wish to monitor the market price would do better with the signal based robots.
The use of available foreign exchange trading robots is ideal for those who find themselves short of time or who are suitably experienced enough to trust encoding the system to automatically make decisions for them. This type of software is also suitable for those who wish to receive signals when they need to decide on buying or selling.
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