Most currency traders cater to auto trader Forex as their modus operandi. In fact, it was found that in the year 2004, around 75% of FX trades in the US (more specifically in New York) were result of such types of programs.
Not being able to invest sufficient amount of time, they used such computerized trading programs to dig out the lucrative trades and procure its profits. Such programs have many built-in parameters which one can either use in its default way or customize it as per one’s requirements. Another name for this kind of trading is known as Algorithm Trading System (ATS).
How Auto Trader Forex Software Works?
These systems have specific rules for both trade entries and exits and are executed through a computer set-up automatically. Depending on the nature of the software, the software can have parameters which are as simple as the Moving Average crossover to as complex as some programming code which is specific to the platform.
There is no specific knowledge which a trader needs to have when using such auto trader Forex programs. The software can determine spreads, price instability, currency fluctuations, and whenever there is a profit-making opportunity, the system notifies the trader by sending out signals to their trading charts. The same case applies when the chances of failing in a trade are high.
Plus, most top rated software for an auto trader in Forex also have wizard options which enable selection of appropriate technical tools to customize their trading strategy. One can input one’s preferred order type and set one’s Profit targets/Stop Losses for trading satisfaction and rewarding results.
The Usefulness of Such Trading Software:
Using a high-end auto trader in Forex keeps emotions in check and allows one to stick to the plan.
It instills trading discipline which is another important criterion when trading in highly volatile markets. For a new trader who has just entered into this venture, it’s natural to experience fear, or hesitation. With such programs, one just sets one’s parameters and owing to the functionality of the system; one can stick to the plan.
Such software also makes diversifying trades hassle-free. A trader can trade using multiple accounts, all at the same time. The system scans all perky prospects across vivid markets which, rationally speaking, would not be humanly possible.
Lastly, backtesting is another crucial benefit which traders can benefit from. Backtesting means fine-tuning a trading strategy and also establishing the system’s yield expectancy. Knowing beforehand if a strategy is apt or not is a huge benefit and these automatic trading platforms allow traders to examine that comprehensively.
What Could be a Good Option to Go for?
MetaTrader 4 terminal stands as one of the (if not the) most prominent trading software in Forex-Dom. The system is quite easy to understand, and it presents traders a plethora of customized tools and analytical objects to bring into trading. Furthermore, the system comes with a demo account which traders can sign up and backtest their strategies before putting it through its real paces. This surely is one auto trader Forex option which all tyros can go for without hesitation. So, look for brokers who offer MT4 and get the best chance of cracking decent profits.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.