Auto Trading Forex Pairs
The end result of electronic trading and comprehensive strategies for trading Forex online, is auto trading Forex pairs. Auto trading Forex pairs occurs when a trader sets specific criteria for buying or selling foreign currencies. The trade system reads the market, executes a trade according to a prescribed strategy, follows the trade according to preset rules, and closes the trade according to a trading algorithm. Auto trading Forex pairs is commonly the province of those who trade frequently and seek to profit from small and recurring opportunities in any of a number of currency pairs. Online foreign exchange trading allows traders to scalp profits in a volatile market, profit from trend trading, and gain when technical indicators are clear. Auto trading Forex pairs requires a system that accurately ready technical signals and responds rapidly both in buying and selling as well as in resetting trading stops along the way.
Half Way in or All the Way
Auto trading Forex pairs can be completely automated or traders can turn the system on and off as they oversee the process. In a completely automated system a trader sets trading criteria, reviews results, and modifies criteria as needed. In a semi-automated approach to auto trading Forex pairs a trader can use the system to generate trading signals which he then follows, or not. Or he can turn on the system when he believes that an automated system will more accurately and quickly execute trades than he could.
When Is Auto Trading Forex Pairs a Good Idea?
When speed is of the essence, taking the human out of the equation is a good idea. When a trader is prone to leaving his Forex strategy behind and letting fear and greed rule the day, auto trading Forex pairs takes trader psychology out of the picture. In rapidly moving and very volatile markets speed may be an issue. When a trader has experienced gains or losses and is in danger of losing sight of his own strategy auto trading Forex pairs keeps him with the system that made profits in the first place.
When to Run and Hide from Auto Trading Forex Pairs