There are a lot of traders working on the forex market. When you look at trading you should consider all of your options. One option is to use automated forex strategies. There are a number of reasons why traders look at automated forex strategies and you should know about them. If you decide that this is the right option for you then you need to know about the different types of automated systems you can use to trade with.
What are Forex Robots?
Forex robots are software programs based on trading signals that determine the most advantageous time to sell or purchase a particular currency pair. The programs are designed to eliminate the emotional and psychological elements linked to human trading. Robots do have experience emotions, but traders do. This implies that the software is not affected at all by the normal emotions of human beings. You will be able to set criteria that will activate the program to execute your trades automatically or semi-automatically once all the criteria are met.
The Types of Automated Forex Strategies
There are two basic robot types that you have a choice of. This is a signal-based or a semi-automatic type and a fully automatic type. Each comes with their own unique features:
The attractive feature to this type of robot is that is utilises complicated software which monitors the movements in the market. It also identifies suitable trading opportunities automatically. Once these opportunities have been identified, it will alert you. You have the opportunity to accept or reject the alert.
- Fully automatic
This type of robot takes over all the functions of trading from the trader. It comes with algorithms that are automatically integrated. These algorithms are set to detect the most appropriate signs for trading and it executes it automatically. There is no need for intervention by you as your robot will undertake all the steps automatically. You will however have the facility to modify the criteria as well as the parameters as far as the risk exposure is concerned.
What Type You Need?
You have different needs to others and your level of experience differs, so you need to choose forex trading systems based on your own criteria. Many traders who are experienced in this financial market and who have over time developed their own set of reliable strategies tend to opt for the automatic version of this software. It is advisable, if you fall into this category, you employ a knowledgeable programmer to code your strategy into the robot that you have chosen.
If you are one of the traders who do not have sufficient time to trade personally, you may find that an automated system will work for you. You should also appoint a qualified programmer who is capable of coding your personal strategy into the automated software.
If you are one of the traders who wants to remain hands-on and make your own decisions regarding buying and selling of your trades, but you do not have the time to monitor the trading market for changes, you will find that the semi-automatic robot will be adequate for your use.
The use of trading robots is an ideal situation for traders who are short of time or who have the experience to encode the system either themselves or with the help of programmers.
Get a free Forex PDF PLUS:
- 14 Video Lessons
- Free One-on-One Training
- A 5000$ Training Account
- In-House Daily Analysis
- Get FULL ACCESS