Auto Forex Trading: Beware Of Some Of The Software Claims
by Edward Lomax
Auto Forex Trading seems like a dream come true. But is it really all its cracked up to be... or is there some things you should know first? Is using an automatic Forex robot right for you?
Auto Forex Trading appears to be something out of the future. Setting your Forex currency trading on autopilot is very attractive, both for the beginner Forex trader with a small account and the big money trader with large accounts. But there are some things you should look for when choosing an automatic trading robot.
First, What Is Auto Forex Trading?
Automatic Forex Trading is when you let a piece of software, a computer script or a "robot" do the currency trading for you. Predetermined indicators are programmed into the script, and then the program monitors the Forex Market in real time and makes trades when the conditions are right. The goal is to use the Forex robot to automatically monitor currency market conditions, make winning trades and reduce risk.
One of the great things about using a computer program to do your currency trading for you is you can test the program by using backtests or a demo account. This sure takes off a lot of the stress of trading when you can check the automatic robots settings before putting any real money on the line.
Using an automatic forex program is the closest thing you'll get to a "set and forget" Forex solution. After you get the program set up to the proper specifications (normally given to you by the programmer), you just let the program do the trading for you. And if everything is done right... you just need to count your profits. First ask yourself, "What is the right currency trading solution for my goals and personality?"
Is Auto Forex Trading Right For Your Forex Trading Style?
Not all Forex traders are the same. Some like to be 100% hands on and do all the trading themselves. However, this means you need to keep up with the currency market, the trends and need to be around to do all the trading at the right time... day or night. This approach takes a high commitment of time and energy.
Some currency traders use a semi-automatic computer program. In this case, the software keeps an eye on the market and makes suggestions. Then you need to make the trades. If you are skeptical that an automatic robot can really make a high percentage of winning trades all by itself, this might be a better option. The bad part is you still need to do all the trading manually, which results in being glued to your computer screen at all times of the day and night.
If you are looking for a "set and forget" type of solution, the fully automatic option is for you. But not all auto Trading robots are the same.
Not all automatic Forex trading solutions are created equal!
If you are like me, you want to take advantage of the huge opportunity the Forex market provides for making money and creating wealth. But, doing the trading manually requires you learn everything yourselves and put in the time necessary to watch the Forex Market. Some might want to take a less involved approach. This is where auto trading comes in.
The success of an automatic Forex robot is determined by the preprogrammed indicators it uses to do the trading. They should be set to make maximum profit, but reduce risk. This normally means looking at currency trading in a more long term setting, and avoiding the "all or nothing" trading style some Forex robots are set to use.
Here is one of the most important things to look for. Auto trading programs usually use backtests as "proof" their program delivers on its promises. And there is nothing wrong with that. But, there is a difference between backtesting and putting REAL money on the line. So, my advice is to look for an automatic Forex robot that has been proven to work in the REAL world with REAL money. After all, those are the results you want when you use the robot, right?
Don't rely exclusively on programs that ONLY use hypothetical tests and backtests as proof their software works. I wanted the go the auto trading route, so I needed something that was proven to work with REAL money. For me, finding the right automatic trading solution really was a dream come true.
Article Tags: Automatic Trading, Autotrading, Auto Forex System Trading