The 21st century is a digital world and nobody can deny that. You may even sometimes see people complaining about the world we live in right now. The world created by technologies all around us. The 21st century arguably saw more innovations than all of human history combined. The spike at which the tech sector grew, outpaced pretty much every other industry, which is a recipe for acceleration.
Almost every industry in the world had to keep up with the innovations, become digital and more accessible. This website is thanks to those digital advancements and Forex itself, as you and I know it today, is thanks to that digitalization as well.
However, the technologies bring a bit more to the table in terms of Forex. They allow us to make it more enjoyable as a whole. I’m talking about automated trading and how it affects the people that utilize it. Join me in my introduction of Forex automated trading, as we discuss all of the best, automated Forex trading software and strategies.
Why should you use Automated trading?
First things first. Let’s make it clear that there is no software or programme out there that will make all of your trades a 100% success. If that existed, I wouldn’t be sitting here writing this article.
Alright, let’s get to the task at hand. The question is why? And the answer is why not? Look at it with a more emotional perspective rather than logical. Trading is something that can drain you both physically and emotionally. The stress that comes with every trade order can quickly pile up and become unbearable. Automated Forex trading robots are a good way to avoid these emotional strains as they help relieve the mental pressure you feel when making a trade yourself. The systems are in comprised of algorithms, which guess the price change through pure logic, meaning that the natural human hesitation aspect is completely disregarded.
Although this is only one example, like anywhere else in this world, nothing comes with only benefits, there are pros as well as cons connected to automated Forex trading software. One of the pros is the fact that you get to set it up yourself, meaning that you indicate your stop-loss and take-profit cap and the software will do the work for you, leaving you more time for your family or job.
The con is the fact that you don’t get to learn too much about the market, so when you feel that you’re ready for a larger investment, you lack the knowledge of trading itself, which puts you at a disadvantage. In this case, you can opt for a managed Forex automated trading account, but that comes with pros and cons as well.
Automated Forex trading software
There is quite a lot of software to chose from when it comes to automated Forex trading. However, how do you tell which one has the better algorithm system? Well, there are several ways. You can always look at the statistics. The percentages of how many trades out of ten are successful and so on. As I’ve mentioned before, don’t expect the software to be correct 100% of the times, it’s just impossible. Even a computer cannot predict the prices all the time when they’re traded so rapidly.
One of the best ones you can go for is the good old MetaTrader4 automated Forex trading software, which has proven many times to be the go-to software not only for automated trading but hands-on as well. You can find a definitive guide to using MetaTrader as your daily driver for automated Forex trading here.
Where to find other software
There are more platforms where you can find software that enables automated Forex trading. These “robots” can be found with Collective2, ZuluTrade, and Tradency In most cases you get some variety, which is always applaudable but make sure to check them all out before sticking to just one.
PAMM, LAMM & MAM
You and I are just humans, there is a limit to how much we can do with the bodies and minds we are born with. The same thing applies to the account managers at the Forex brokerages where we trade. What I’m trying to say here is that there is so much a single money manager can do with all of the trades that go through every second of his working time. Therefore in order to decrease the tedious nature of this job, some software was developed to help these people out.
You see the free Forex automated trading software that these managers use help make similar trade orders, by similar I mean at the exact same price. This enables you to make an order at a price you actually see on your screen and not the one it shows after a few seconds, putting you at a disadvantage. For this software like PAMM (Percentage Allocation Management Module), MAM (Multi Account Manager) and LAMM (Lot Allocation Management Module) were created. You can check a comprehensive explanation of this software by clicking here, it’s honestly not that hard to understand.