Automated forex trading has certain advantages in that you can simply follow trade signals that are generated and providing you can execute them with discipline and the your system is logical and robust you can pile up big gains...
Before we look at how to make profits with automated for trading software, lets look at how NOT to do it.
Many traders see forex robots online and want to buy them but most are junk and have never even be traded in real time. Go and look at the track record, then look at the disclaimer and what do you see?
Its hypothetical or simulated - well that is NOT any indication of future results and I find it amazing someone can use a meaningless test and then say they can make money with it. Of course they do make money for the vendor, they get the sale of the software and the trader gets spanked in the market.
You don't get 100k annual income, for 100 bucks. You won't make money with these simulated systems so avoid any of these products.
Now let's look at how to do automated forex trading properly and here are your options.
- Buy a System
With a track record audited over 2 years. Not cheap - but these systems can pay for themselves many times over, just make sure you understand and agree with the logic before using it.
- Get a FREE One.
Yes there are free ones that work and we have written frequently on the 4 Week Rule. Just look up our other articles it works, look it up and you will see why and its a great place to start your automated forex trading career.
- Build Your Own.
This is a lot easier than traders think and is perhaps the best way of trading - why?
Because if you build it and customize it, you will have confidence in it. This means you will be able to trade it with discipline, through periods of losses and remember, if you don't have the discipline to follow your system, you don't have one!
If you want to build your own we have covered this in our other articles but in essence, the best way to do it is to trade breakouts, to new highs or lows, have a few momentum indicators, to time your moves and focus on long term trends.
The simpler it is the better, as it will be more robust in the face of brutal, ever changing market conditions - pack it with too many indicators and it will break.
Once you have the system, get a standard forex software package and program the rules and you're all set.
A word of caution - Any forex trading system (and this includes the best ones) will suffer losses and they can last for weeks on end.
You need to trade through them until you hit a home run and that's why discipline and money management are so important.
If your system does between 50 - 100% compounded annually, you are up there with the best automated forex trading software and you will have a time efficient way, to trade the markets and enjoy currency trading success.
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