A prevalent question which exists among most traders is “how to trade using an automated investment platform?” While the answer to this question takes a twofold approach, you as a trader first need to understand the intricacies of a trading platform as well as its working mechanism. This article will provide you with a layman’s guide about the best Forex trading robot and a brief highlight on MetaTrader.
What are Forex trading bots?
Automated trading software act as bridges between traders and brokers. These bots come with an interface that allows investors to place a trade manually or deploy preferable settings for automatic openings. In addition to this, these platforms provide with charts and indicators that help traders identify the market trends and go long or short accordingly.
One can install these platforms or software on one’s computer and initiate trades from one’s desktops or laptops. They are completely platform independent making them compatible with all existing operating systems.
However, be it a free trading bot or a paid one, you need to keep in mind certain questions before purchasing these software or even downloading them. The best Forex trade robot questions include:
Does the bot allow trading through charts?
What kind of indicators does this trading platform provide?
Is the GUI complex or user-friendly?
Is it free or needs an amount?
Does this software allow plugins?
Most common investment platform – MetaTrader:
The name MetaTrader is prevalent with every investor who looks to gain from the currency market. Accepted by all, it is the most widely used Forex trading bot in recent times. While MetaTrader 4 was a revolutionary update, the fifth iteration offers a horde of new features. Here’s taking a look at them,
- Charts and Candlesticks:
Intricate technical analysis of market charts is essential in securing profitable trades from this market. MT4 and MT5 specialize in providing in-detail charts of present market scenarios with live currency price readings.
This helps investors to identify market trends as well as trend reversal patterns to exploit volatile openings in the arena and is a major reason for MT4 to receive proclamation as the best Forex trading robot by many.
- User Interface:
Both the mobile as well as a desktop version of MetaTrader receives apt complementation from veteran users. It offers a clear representation of historical data and graphs corresponding to fluctuating price actions. This helps traders get a proper idea of the market and take necessary steps.
Currency trade involves millions of dollars, so ensuring account security is of prime importance. MT4 and MT5 being the best robot for Forex trading excel in these categories with their double layered encryption patterns which prohibit malware users and third-party apps to hinder your personal trading data.
Know the trading steps
To invest in a trading platform such as MetaTrader or Bloomberg, one needs to follow the following steps:
Decide on your currency pair.
Decipher price action from charts and indicators.
Look for profitable openings.
Predict market trend.
Place your BUY and SELL positions.
Close to gaining pips.
Here’s an in-detail review on the efficacies of investment bots and how to trade using them. So, gear up now and set your foot in the currency market with the best Forex trading robot.
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.