The Concept of an Automated Forex Trading System is Very Interesting

The Concept of an Automated Forex Trading System is Very Interesting: Before the automation of the Forex market, exchange traded futures markets were the first to switch to automation. Then, traders in the Interbank FX spot market decided to catch up with the latest trends and move also to the new system.

The Concept of an Automated Forex Trading System is Very Interesting

The automated Forex trading system allows traders to trade on the spot Forex market automatically and anytime, based on existing technical indicators and special trading rules. There are various features included in the automated trading system, such as:

• Trailing automatically stops especially if the trader loses in a certain trading position
• Account equity management
• Stop and / or limit the order
• Free market orders
• Various technical analysis indicators are at your discretion to activate a trend-following system.

The automated Forex trading system supports most of the following indicators (technical support will depend on the technology used and the features available from the system):

• WMA (weighted moving average)
• EMA (exponential average moving)
• SMA (simple moving average)
• VMA (variable moving average)
• TMA (triangular moving average)
• TSMA (average time series)
• WATR (true range of wilder averages)
• VHF (vertical horizontal filter)
• Standard deviation
• Trailing stops
• Mass index
• Set limits and stops, and others.

The success of the automation process to the Forex market is associated with several factors, such as the following:

1. Its ability to do or execute trades in real time.

Because of automation, a trader can close trades in a few milliseconds. Not possible in manual systems, because previous trades are usually closed after a few hours. In addition, there are also examples where traders experience several consecutive losses that prevent them from making new transactions. Thus, with the automated Forex trading system, this problem can be avoided.

2. Its ability to diversify more.

With the current automated trading system, a trader can trade in various local and international markets in various time zones. In other words, you can trade or close transactions with different traders from various markets around the world even in the middle of the night.

3. Its ability to analyze short-term data.

This feature is not available in the manual trading system. Thus, traders who use automated systems have a greater advantage because they can predict market trends in less than one hour.

If you will combine the features and benefits of an automated Forex trading system, it will give you a strong conclusion: with the Forex market on automation, you will be able to place more trades on one day, thus increasing the average volume of trading every day.

To further clarify the conclusions. Let's take the following scenario: If you trade using a manual system, you will see that it takes time before a trader confirms whether he will accept your agreement or not. He will look at market conditions first and the exchange rates of the currencies you trade. Thus, if necessary, the time before the transaction will be completed; there will be less trading volume.

Now, if you use the automated Forex trading system, evaluation of exchange rates and market conditions can be done in a few minutes, because Forex data is now updated in real time. Maybe after less than one hour, you will be able to take your position whether you will push through an agreement or not. If Forex transactions per trader are on average in one hour, one trader can place as many as 8 trades in regular trading hours (if he follows the daily trading schedule) and additional trading outside of regular trading hours. There are thousands of traders in just one market who can place the average number of trades per day. Combining with the number of Forex markets throughout the world, the numbers are quite large.

In addition, the technology continues to change, so there is a tendency that the average number of trades per day will increase, so the possibility of increasing trading volume every day. With faster trade execution, that is a certain possibility.

Thankfully, the Forex market is now at the helm of automation. Transactions are now faster, and making money through Forex trading is now easier.

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