Did you know that more than 70% of institutional trading happens by means of an automated daily Forex system?
An automated trading system is one where the user can set up certain rules for trade entries and trade exits, for going long or short on certain currency pairs – all of which is the automatically executed by the computer.
Sounds risky? Well, its actually safer and more convenient than having to do it manually.
Pretty much every trading software comes with immediate broker access and purchases can be made immediately. The rules for trade are written as part of the system’s specific propriety language. For example, the NinjaTrader Platform uses NinjaScript while TradeStation uses the EasyLanguage programming language. But that doesn’t mean one needs to be an expert programmer to be able to use these softwares.
All automated daily Forex systems come with a user guide, teaching you how to work efficiently with the software. So as the user, once you set up rules for the day trade, the system will monitor markets looking for buy and sell opportunities.
Why should you prefer automation over old school human control?
There are several reasons most traders these days make use of some of the best daily Forex systems that come our way.
- Curtail emotions:
Forget every technical or scientific reason for using technology. One of the key reasons for using a Forex trading software is the fact that it can separate your bias. Pretty much every time a person sits down to trade, they bring their own biases with them, without even realising it.
Sometimes a good deal or the lack of it can push traders into making imprudent decisions. A software on the other hand will rely wholly and simply on the strategies and parameters you set.
- Preserves discipline:
Much like the first reason, automation of a daily Forex system helps stick to the game plan and preserve discipline. This comes especially handy during volatile markets – when the best course of action is to stick to a strategy.
Also, very simply, it diminishes the chances of human errors. An order to purchase 10 shares will never be mistakenly taken for an order to purchase 100 shares.
- Improves entry speed:
Another great aspect of automated daily Forex systems is instantaneous response to changing market conditions. The system will enter a trade as soon as it meets the criteria, saving crucial seconds of that would’ve been otherwise wasted under human control.
Sometimes getting in or out of deal few seconds earlier can make all the difference. Its immediate stop loss mechanism can determine whether the user exits with a small loss or has to endure a catastrophe.
- Ability to Backtest:
Backtesting is the process of matching trading rules to historical data. The system cannot make interpretations or guesses. It needs to be told precisely what is to be done.
With backtesting, traders can test the strength of an idea by implementing the rules on historical market data. This will give him/her an indication of the feasibility of the strategy.
The ease of an automated daily Forex system has made manual trading time consuming and obsolete process. Why put yourself at a disadvantage even before you start trading? Switch to automation today.
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.