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3 Best Automated Forex Trading Systems that Work

Auto Forex trading is getting more and more popular with the time. Every Forex auto trader is working harder and harder to improve his automated Forex trading strategies. But have you ever wondered which are the best automated Forex trading systems? If yes, then you have landed on the right page. Today we will name three automated trading systems and strategies that work. But first, let’s do some basic rehearsals.

Why Engage in Forex Trading?

Foreign exchange trading and other financial market activities are becoming increasingly popular. Some people are doing it for a living e.g. brokers and professional traders.  Others consider it as a way to earn passive income or to gradually build up long-term investments. Still, there are others who get into it for the thrill and experience of online trading.

Who Can Trade?

Fast-paced technological advancements allow trading to continuously widen its doors and accommodate all sorts of traders. Corporate entities and individuals, regardless of financial status or location, can engage in the trading business. With either huge amounts of resources and investments or with just modest money on hand, anyone can trade from anywhere around the world.

What is Automated Forex Trading System?

Automated Forex trading systems involve trading where separate trades are executed based on computer algorithms. Automated trading uses computers and highly advanced online Forex trading software in monitoring trading opportunities and executing the transactions.



There are many ways to participate in the trading business. You can opt to use any of the auto trading solutions that have evolved in the market. The three best automated trading systems known are Algorithmic Trading, Copy Trading, and Mirror Trading so let’s go through each of these three auto trading approaches.

1)    Algorithmic Trading

Algorithmic Trading System

In case you wonder what is algorithmic trading, we have an explanation for you. The algorithmic trading meaning involves a lot of mathematical calculations. In algo trading, automated trading algorithms or instructions are entered as input by the programmer and analyst. Once certain conditions are met or satisfied and the limits set are reached, trading plans and strategies can be formulated.  Based on the trading plans, the computer automatically generates the automated Forex trading signals either to buy or sell.

To learn algorithmic trading systems you should also approach expert advisors (EAs) or auto trading bots. This is special automated trading software that every algorithmic trading system develops and makes use of, and can work 24/7. Such performance cannot be duplicated by humans without committing errors due to fatigue and other factors. Most of the algos used include parameters on volume or quantity, percentage, price, and timing of the trade. These indicators are highly critical to institutional traders. Thus, this type of trading is favorable to corporate traders. It can execute large trade orders in real time.

However, the computer being a machine means that it needs to be constantly monitored, as it can be subject to mechanical failure at any time due to power and connection problems.  As a pre-programmed device, it is also prone to programming and encryption errors that can cause large losses, if left undetected.

2)    Copy Trading

Copy Trading System

Copy Forex trading is the next Forex auto trading system that we will discuss. Copy trading is best for newbie traders who have not yet gained adequate knowledge and skills in the business. You are probably still wondering how does copy trading work. Here is a simple answer:

There are automated Forex trading platforms such as Zulu Trader where you can join and copy Forex trading strategies of the expert traders. In other words, your copy trade profit depends on the decision taken by the expert trader you follow.

This trading system is also known as social trading, as you can participate in a special Forex social network and communicate with other traders through the exchange of messages and ideas, as well as through access to live feeds and post, like, share and comment functions.

3)    Mirror Trading

Mirror Trading System

Another automated trading system that was introduced in the late 2000s is mirror trading. If you are new in trading, you can start as a mirror trader. You can do mirror trade by mimicking the trading strategies of successful traders.

Start by analyzing the trading pattern or behavior of the traders you want to replicate. Once you have decided on the strategies to adopt, then these are entered into your account, and you can then begin your mirror trading system. This can be set to auto trading in which case the computer executes the order automatically once the signal provider opens a position.



If you want to have more control on your account, you can set your mirror trading Forex system to semi-auto mode. Once the trading signals are generated, you can manually execute the trade.

Do Automated Trading Systems Work

Now that you know what is automated trading, you are probably asking yourself “Do automated trading systems work?”  They sure do. But first:

  • You should choose the best automated Forex trading system for you. You should learn how it works and how it applies to automated trading platforms.
  • You should plan, build, and code a successful automated trading Forex strategy that you want to systematize.
  • You should examine the automated trading services of your Forex auto trading software in details to minimize possible errors in trade implementation and strategy building.

Conclusion

In summary, you can decide to trade high or low.  You may also prefer automated over manual trading.  But be wise. Remember not to be swayed into using untested auto trading solutions, especially if they promise incredible profits. Choose a legitimate automated trading platform that has been adequately tested. Once you are comfortable and have access to appropriate trading strategies and tools, trading can be an interesting, rewarding, and satisfying venture.


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What is Automated Trading System and Trade Automation

Forex traders that are focused on technical analysis techniques will often set up a trading station in ways that allow for automated trading.  To some, trade automation might seem to be risky.  But when certain money management techniques are used, it is definitely possible for traders to account for regular profits using Forex automated trading system on the markets.

What is Automated Trading System

I bet you have heard the term automated trading many times recently. You probably ask yourself “What is automated trading system?” Here it is:

The automated trading involves the programming set of rules into your trading platform. Your platform implements these rules automatically by activating different trading processes. An automated trading system involves setting clear entry levels and targets on the chart, as well as Stop Loss rules.

Nowadays, the automated trading strategies are among the most used when investing in currency.

Forex Automated Trading Strategies

Generally speaking, there are two basic automated trading strategies that work. They are broadly used when Forex traders are looking to establish trade automation.  Automated trading in Forex can be separated into two basic trading techniques. The first are the ones that rely on momentum automated Forex trading strategies. The second are trading techniques that rely on contrarian automated trading strategies.  Here, we will look at some of the differences that exist for each of these automated trade techniques.

Momentum Automated Forex Trading Strategies

First, we look at momentum automated trading strategies which require a certain level of trend activity in order to generate significant trading ideas.  Trends are usually viewed as a series of higher highs or a series of lower lows.  When this is apparent, Forex automated traders can place their positions in the direction of the trendline in order to capitalize on the underlying momentum that can be found in the market.

In these cases, expert automated traders are generally looking to pair a strong currency with a weak currency, as this tends to be the scenario that creates the strongest trends and momentum activity.  So it should also be understood that these are the types of scenarios that are capable of generating the biggest profits for those using momentum automated trading system.  But at the same time, it will need to be understood that few opportunities might be present when markets are not caught in a major trend.

Contrarian Automated Trading Systems

On the other side of the coin, we have the traders that prefer contrarian automated currency trading.  This opposes what happens with momentum automated trading strategies. This is so because in these cases automated traders are actually looking to place positions in the direction opposite the trend.  To some, this might seem like a losing battle.  But if the major trend is about to end, then it will start to make more sense to place automated trading orders in the other direction.

Contrarian automated trading systems allow Forex traders to “buy low and sell high.” Therefore, it can be very profitable when used successfully.  There is risk involved when the dominant trend is not assessed correctly. But money management strategies in trade automation allow for tight stop losses in many cases.

Automated Trading Platform: MT4 Automated Trading

One of the most used automated trading software is the well-known MetaTrader 4 platform. This platform allows full customization and modification through a special coding language called MQL 4, which is the base of the MT4 Indicators.

Automated Trading Platform: MT4 Automated Trading

The MT4 automated trading allows you to set special trading rules that the platform will implement for you. This way the MT4 automated trading platform reduces the human factor when trading, which increases the profit potential in case of a successful automated trading strategy. This is why the automated trading MT4 platform remains among the best Forex software and automated trading platforms.


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