Forex Auto Trading in 2024
Want to jump straight to the answer? The best forex broker for traders is Avatrade
The #1 Forex Trading Course is Asia Forex Mentor
Forex trading is simple but not easy. It is simple because trading is simply the act of making decisions in response to price movements. Trading decisions are guided by trading rules outlined based on the premise that following these rules would lead to consistent profitability. Unfortunately, human errors and emotional responses to market environments are detrimental to the trading process and limit the profit potentials of traders in the financial market.
These errors include but are not limited to; poor risk management, indiscipline, fear, and greed. These trading errors are commonly made by forex traders who carry out manual trading through trading brokers.
Fortunately, every human activity that involves algorithmically making decisions, can be automated. Hence, automated trading was brought about to curb the impacts of human errors in trading and provide a stress-free trading environment. Automatic trading software helps new traders who are at a high risk of losing money rapidly, to make money when trading CFDs and financial assets.
In this review, you would learn about forex automated trading – what it means, its pros and cons, and the best-automated forex trading software.
Forex Auto Trading: What is Forex Auto Trading?
Automated forex trading involves trading the financial markets using automated trading software, commonly referred to as trading software or robots. Automated trading software is a software program built to carry out trading processes such as the analysis, execution, and management of trades.
Automated trading systems vary. Some trading algorithms do not carry out their trade analyses, but simply copy trades. These algorithms are available on social trading platforms. They copy trades taken by professional traders and execute them on a separate account. Copy trading is also known as social trading. The aim is to help forex traders who lose money when trading, or traders who have no trading experience, to make profits.
This software is encoded with instructions on how to identify favorable market conditions to trade-in. These instructions can include how to execute trades and the risk management parameters to employ. The profitability of trading software depends on the trading strategy employed and the settings chosen by the end-user. The trading strategy refers to the systems of technical analyses used by the automated forex trading software.
Some automated forex trading systems can manage trades using risk and money management parameters set by the user. They would execute trades based on these risk management rules and close them when the criteria for terminating the trades are met.
Automated forex trading software is built with different trading techniques which help them recognize unique trading opportunities, hence the results of one forex robot can differ from another. Modern automated forex trading software uses a combination of trading styles to make trading decisions.
This combination of strategies helps the robot take advantage of the strengths of different trading systems. Automatic trading software can have two or three strategies encoded in them, but allow the users to choose the trading style to use, based on the number of profitable trades or other criteria like drawdown percentage and trading style.
A forex robot can carry out technical analysis. As such, it can be used to provide trading signals or trade ideas. This trading software can help traders trade on a trading platform by showing how to enter, exit, and manage trades.
An automated forex trading software brings 3 key benefits.
Firstly, automated trading software creates a stress-free trading environment. This is because some trading errors as discussed earlier, result from the psychological stress that comes with trading forex. In addition, an automated trading system allows for accurate execution of trades and concise trading parameters. Finally, this software provides trading signals used by forex traders to trade with a forex broker.
Best Automated Forex Auto Trading Software
#1. Metatrader 4 or 5
Metatrader 4 and 5 are trading platforms used by traders for analyzing the financial market and for trading CFDs and forex pairs.
Metatrader 4 was released in 2005 and contains several indicators and technical analysis tools to help traders analyze the financial market and trade in line with their speculations. The platform provides access to indicators such as moving averages, Bollinger bands, and relative strength index, just to mention a few.
Like other trading platforms, the MT4 platform allows traders to execute different types of trade orders, from limit orders to market execution of trades, depending on the market conditions.
Metatrader 5 is also a trading platform that allows forex traders to analyze, execute and manage trades. There are slight differences between the MT4 and MT5 trading platforms but in relation to trading, they perform similar functions.
MT4 and MT5 platforms provide automated trading software for forex traders who use them. They provide a variety of trading software that is either free or for sale on their platforms. They provide the best-automated forex trading software and allow you to test them before purchase using a strategy tester.
Each automated forex trading software has a detailed description of its functions, cost, style of trading, and other parameters to help you choose the right automated forex trading software. Unlike other platforms, the MT4 and MT5 platforms provide a variety of payment methods to enable their users to carry out seamless transactions.
In addition, the MT4 platform has the MQL4 IDE (Integrated Development Environment). MQL4 is simply a high-level programming language used on the MT4 platform. The integrated development environment allows for the development of algorithmic trading systems of various complexities.
Metatrader 4 and 5 are ranked as the best-automated forex trading software due to their versatility, ease of use, and ability to provide forex trading software of various complexities.
#2. 1000pipclimbersystem.com
The 1000 pip climber system is an entirely automated trading software in which the analysis and trade parameters are provided by automated trading software. This Forex robot carries out the analysis of currency pairs and complex instruments, then provides trade ideas for traders to execute on a trading account.
Unlike other automated trading robots, the 1000 pip climber system does not execute trades for traders. It only provides the trade ideas which forex traders utilize.
This trading software is known for being beginner-friendly. However, the trade signals can also be used by expert traders. The system comes with easy instructions that help beginner traders through the setup process.
Most importantly, this trading software has a verified track record of profitability as shown on the website. This proves that if the trade ideas from this forex trading software are executed on a trading account, it would produce profitable results in the long run.
This trading software can analyze the financial market non-stop and consistently provides trade ideas to make profits from. Therefore, it is one of the best-automated forex robots because it is beginner-friendly, easy to use, and has a verified track record of consistent profitability.
#3. eToro
eToro is a brokerage company and a social trading platform that allows users to trade the financial market for profits.
One of the unique features of eToro is the social trading service it provides. This allows traders to copy the trades of professional traders on the platform. This helps new traders or inexperienced traders make profits by copying the trades of professional traders in real-time.
The eToro automated social trading service empowers the copied trader and the copier with various trading options. As a copier, you can decide which professional traders to copy and which trades to copy.
The platform also lets effectively manage the copied trades. For instance, the copy stop loss feature is an automated risk management method to ensure that your losses are controlled despite the trading results of the copied trader.
Does Forex Auto Trading Work?
Yes, automated trading works because there is profitable trading software available. Some of these have been discussed in this review, but others can be gotten through research. These systems work because they have systematic forex trading strategies that allow them to produce fairly consistent and reproducible results. However, despite having profitable trading software, some traders may find it difficult to make profits due to human or trading errors.
An automated forex trading software aims to eliminate human and trading errors while trading. But, human errors may result from the wrong setup of a forex trading robot or the use of poor risk management settings. This is important because a trading robot can produce different trading results when used by different traders, due to the difference in the trading parameters used.
Some forex trading software has unique settings that have to be adjusted based on market conditions. These ensure that the trading styles are tailored to the market cycle. Others have multiple trading strategies which are best suited to specific market environments. Human errors result when these settings are not understood or optimized.
In addition to human errors, making profits using forex trading software can be hindered by trading errors, and this usually applies to social trading systems. For instance, some traders who copy a consistently profitable professional trader may decide to increase their risk per trade. This is due to greed and the desire to make unrealistic returns on a single trade. Traders who take such extreme risks would find have a hard time recovering their losses or bouncing back from a losing streak.
In short, algorithmic trading systems work, but the trading processes and strategies of such systems can be controlled by traders. To optimize these systems, it’s important to choose the right settings in terms of strategies, risk, and trade management parameters that ensure consistent results.
How to Make Money with Forex Auto Trading?
Making money from automated trading software requires a trader to; choose a profitable forex trading software, make a deposit, and follow risk management rules.
Not all automated forex trading software is profitable. The first step to profiting with an automatic trading system is to choose profitable trading software. This can be done by carrying out adequate research and investigating the trading results claimed by the developers of the trading robot.
Some developers make unrealistic promises in the bid to sell their automatic trading software. You can verify these results by ensuring that the claims are backed by an independent third party. Also, the verified trading results should be trading results that show consistent profitability for at least 6 months. This ensures that the trading results can be replicated in real investor accounts.
For social trading, it is important to copy a trader who is profitable and has a long-standing record of consistent profitability. Most social trading platforms would provide you with a track record of professional traders to choose from. This helps you make money by trading in line with the profitable strategy of a professional trader.
It’s also important to use a copy trading platform that gives you a significant amount of control over your trading results. These are platforms that allow you to modify your risk parameters and money management, though the trades are being copied from a professional trader. This helps you protect your account from a drastic drawdown in case of a losing streak or a mistake made by the professional trader.
Most importantly, proper risk management is the fundamental principle upon which profits are made consistently in forex trading. Currency pairs and CFDs are complex instruments and come with a risk of losing money rapidly. To make the most out of automated trading strategies, ensure you adhere to strict rules in terms of risk management. These are rules relating to position sizing, money, and trade management.
You can define your risk management parameters by choosing the appropriate settings on the trading software. Copy-trading software can be configured to have a maximum risk exposure to protect the trading capital. Traders who use trade ideas can manually trade with a predetermined risk percentage.
Forex Auto Trading Pros and Cons
Pros
- An automated forex trading software helps to create a stress-free trading environment.
- It increases the efficiency of a trading strategy by removing emotional trading errors.
- It helps inexperienced traders make profits from the financial market.
- An automated forex trading software maximizes profits because it can work non-stop.
Cons
- Some strategies of currency trading cannot be encoded, hence cannot be used by auto trading software.
- An automated forex trading software finds it difficult to respond to unique market conditions like price movements caused by news events.
Best Forex Trading Course
Investing in the Forex market might seem to be a daunting task especially if you are a beginner, and have just started exploring the Forex market. Although experience is said to be the best teacher when dealing in the Forex market, it is good to learn about the Forex market briefly before making your first investment.
There are several ways in which you can start expanding your knowledge of the stock market. You can either start reading books or ask for tips from your friends or family members who have prior experience of trading on the Forex platform. However, the former is a time-consuming method while the latter is not always a credible learning source.
If you want to learn about investing in the Forex market that would help you gain knowledge, and tell you all you need to know about the market, then you can opt for some professional courses available on the internet. These courses are developed by Forex markets experts who have years of training Forex traders.
Now, there are thousands of courses on the internet that claim to teach you about Forex investment. However, not all of these courses are reliable and give accurate information. So which is the best Forex course for learning the ins and out’s of the Forex market?
Asia forex mentor course by Ezekiel is by far one of the best Forex learning courses on the internet, and they are one of the best learning sources if you want to expand your Forex trading knowledge.
They have been featured on multiple different leading forex platforms and Forex events happening around the world. Ezekiel’s platform is the perfect solution for you to learn because their clients include multiple trainees and bank traders from private trading institutions around the globe.
It is the number one course available on the internet because it also reaches new bank traders and has fun managing if you want to make money from trading forex stocks and other commodities.
You can get a great return on investment by indulging yourself in this systematic course. Even if you are a beginner in the field and do not have enough experience and knowledge about Forex trading, you still join this program with zero knowledge. Everything will be taught to you from scratch, and you can enroll yourself in this program right now to get started.
Check out the testimonials on the website and start your Forex trading journey right away. The good thing about this course is that you will be crystal clear about what you need to do from day one.
They are using a return on investment approach to teaching their students. It is a scientific method of beating the market, and you will not be taught this somewhere else.
Best Forex Brokers
Conclusion: Forex Auto Trading
Finally, auto trading software can reduce the psychological burdens associated with trading. These burdens cause traders to lose money when trading and lead to inefficient trading processes. Some forex trading software analyzes the market, executes and manages trades on retail investor accounts, while others can carry out specific instructions or copy trades taken by professional traders.
Before choosing an automatic trading software, ensure you carry out adequate research to ensure that it is profitable. You also need to verify the results claimed by the developers, by making sure the results were obtained from a third party and not fabricated. Also, for the results to be reliable, they have to be obtained by testing the automatic trading software for long periods.
To make the most of a trading robot, it is important to adhere to strict risk management parameters. This protects your account and ensures that you can bounce back from drawdowns caused by losses. If you’re copying a professional trader, ensure the trader has a verified track record of consistent profitability. A trader whose real investor accounts lose money consistently or go into drastic drawdowns should not be copied.
Finally, automated trading software is a great way for novice and professional traders to make profits from the financial market. New traders can profit from copying professional traders, while they learn to trade, and professional traders can automate the trading processes of their profitable strategies.
Best Forex Demo Account FAQs
What is Trading?
Trading simply means buying and selling assets and services for profits. In relation to the financial markets, trading involves assets such as currencies, stocks, cryptocurrencies, and other asset classes that are exchanged by traders, forex brokers and financial institutions such as banks.
Trading the financial market involves the exchange of assets for money or one asset for another. To determine whether to buy or sell an asset, traders carry out the technical and fundamental analysis. Technical analyses can be carried out by analyzing the price chart of an asset. It involves the use of technical tools to forecast the movement of price. It uses past price data as a determinant of future price movement. Fundamental analysis involves the use of economic and news data to forecast price movement.
Doing these helps traders form a bias or speculation about future price movement and trade according. Traders sell when they expect a decrease in price and buy when they expect a price increase. Retail traders can trade by exchanging one asset for another or by purchasing an asset with fiat currency.
What is Stock Platform?
Stock platforms are platforms that allow stocks to be bought and sold by parties who are registered on the platform. Stock platforms such as Robinhood, allow traders to manage their trading positions or stock investments.
What does Broker do?
A broker is an individual or body which mediates a transaction. A trading broker provides a platform for buyers and sellers to interact, and the broker charges a few for this service. Brokers essentially match buyers and sellers of a commodity to facilitate trades. To trade the financial market, traders have to register with a forex broker. This helps them carry out a variety of transactions on a trading platform. To trade forex, traders may register a demo account or a live account. These can be traded manually or with automated trading programs.
Brokers allow traders to enter and manage trades by placing limit orders, a stop loss and take profit. Retail forex traders need a forex broker to profit from trading the forex markets because brokers provide liquidity by allowing orders to be paired. Sometimes, a broker acts as a counterparty to a transaction in the absence of an order to pair a trader with. Brokers also provide access to a wide range of trading instruments for retail traders to profit from.
