Automated forex trading software runs on a program that analyzes currency price charts and other market activity over multiple timeframes. For example, if a software program using criteria the user sets identifies a currency pair trade that satisfies the predetermined parameters for profitability, it broadcasts a buy or sell alert and automatically makes the trade. A major advantage of automated forex trading software is the elimination of emotional and psychological influences determining your trading decisions in favor of a cold, logical approach to the market. That’s because automated software is intended to make your trading decisions unemotional and consistent, using the parameters you’ve pre-established or the settings you’ve pre-installed.
An automated software program also allows traders to manage multiple accounts simultaneously, an advantage not easily available to manual traders on a single computer. Serious traders can also benefit from automated software, as their other interests, obligations or occupations may not afford them the time they need to study markets, analyze charts or watch for events that affect currency prices. Of the numerous automated forex trading programs offered on the market, many are excellent, even more are good but are not comprehensive in their features and benefits, and a few are less than adequate. In some cases, software providers will provide authenticated trading history results to demonstrate the efficacy of the programs they’re selling. Below, we’ve outlined a few of the key selection criteria for traders considering automated programs.
Fit Automated Forex Trading Software to Your Needs. Automated trading systems vary in speed, performance, programmability and ease of use. Therefore, what serves one trader well may not be acceptable to another. Remote access is also essential if you’re a frequent traveler or intend to be away from your computer for an extended period. The service provides extremely fast access, isolates the system for security purposes and offers tech support.