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Forex Currency Trading - How to Harness Today's Trading Technology

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Fapturbo Is The Only Automated Forex Income Solution That Doubles Real Monetary Deposits In Under 30 Days. No Backtest Tricks

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Forex Currency Trading - How to Harness Today's Trading Technology

  1. 1. ==== ====Get Fapturbo - Forex Exchange Investing Software link Below:http://tiny.cc/forextradersoftware==== ====Self control and discipline can be nurtured and strengthened over time and are extremely valuablequalities to develop. In this article well talk about how these qualities relate to current andprojected future developments in the Forex industry.Manual Forex trading is a time-tested and market proven method for trading Forex. There is nodoubt that manual Forex trading is here to stay. Many of the most skilled full-time Forex tradersprefer this method. The key words here are skilled full-time traders.You see, manual Forex trading can be time consuming. While the process of Forex technicalanalysis gets a bit easier and more efficient with practice in manual Forex trading it can never becompletely eliminated. Manual Forex traders will always need to complete their technical andperhaps even fundamental analysis prior to executing their Forex trades.As you know, fundamental Forex analysis has to do with looking at economic indicators within andbetween nations. Fundamental Forex indicators such as Consumer Price Index, Non-FarmPayroll, Gross National Product, Industrial Production, Producer Price Index, Retail Sales, Balanceof Payments and Interest Rates are many of the most common fundamental Forex indicatorstraders seek to incorporate in their analysis.Needless to say using both fundamental and technical analysis is quite complex and can be a verytime consuming challenge. Except for "news" traders many Forex traders default to primarily usingForex technical analysis.A prime example of "news" is the Non Farm Payroll announcement. This announcement normallytakes place on the first Friday of each month at 8:30am Eastern Time. Forex traders who trade thenews position themselves in the market to capture as many PIPs as possible during the marketcorrections that take place just after a "news" release. Forex traders who trade the news rely quitea bit on fundamental indicators in making their trade decisions.New Forex software programs that gather and interpret Forex fundamental indicators have beenaround for a while and they will continue to improve their accuracy with time.Speaking of Forex software programs, one of the most rapidly developing forms of Forex softwareare "Expert Advisors". Forex Expert Advisors (EAs for short) are software programs that operatewithin your Forex trading platform. So far, the industry leading Forex trading platform for EAs isthe Metatrader 4 Trading Platform designed by ODL Securities.There are several advantages to using an EA. Perhaps chief among these advantages is the factthat the "on-board" programming of the EA eliminates the need for the Forex trader to spend a lot
  2. 2. of time doing technical analysis. Once an EA is properly initiated, it will automatically trade aspecified Forex pair, or pairs, using a predetermined strategy or Forex trading approach.This can be a huge time-saver.With an EA the Forex technical analysis is handled by the Forex trading logic programmed into theEA. The EA functions off of a set of predetermined "rules" which guide its operation. The EAenters the Forex trade when the entry conditions are met and exits the Forex trade when the exitconditions are met. Each EA has a different set of predetermined rules. Each rule is typicallycontrolled by one or more user adjustable "switches". These switches are optimized at the time theEA is delivered to the user and can be saved as a switch settings profile. Once the default switchsettings are saved, the user can make changes to the switch settings if they wish. It is important toremember that the best way to determine EA switch settings is through the back testing process.Back testing is a process by which each switch or set of switches are methodically tested usingactual past market data from your Forex trading platform. While back testing takes much less timethan forward testing it is still a painstaking and time consuming process but the results can be veryrevealing and informative. This process will tell you such things as, for example, which timeframe(s) and currency pair(s) are the most profitable to trade.Back testing is absolutely necessary in order to optimize the settings for an EA and as such it isvery valuable process but the process is not perfect. Data mismatches can occur during the backtest process which can degrade the results somewhat. The source of these data mismatches isnot known at this time but it is an industry wide problem and the solution to the mismatch problemis being vigorously pursued.Even with its flaws the back test process remains of utmost importance when it comes tooptimizing the performance of any EA.The time saving nature of using an EA coupled with the stress reducing effect that it has on theForex trader has boosted the popularity of this kind of Forex trade automation.It is just this kind of Forex trade automation that is helping to fuel the explosive growth of the retailForex market. It is no longer necessary to stay glued to your computer monitor and "baby sit" yourForex trades. Not only that but a properly designed EA can perform functions that even the mostskilled and experienced Forex traders find difficult. For example, there are EAs on the markettoday that can trade multiple currency pairs simultaneously. Other EAs can trade multiple Forexhedge trades at the same time!We are in the midst of a quiet revolution toward increased Forex trade automation. It is safe to saythat the trend toward Forex trade atomization is likely to continue and strengthen over the nextseveral years. Because the advantages of using an EA outweigh the disadvantages, the popularityof using EAs is at an all time high and likely to set new records in the near future.Even though EAs are reducing the need for Forex technical analysis they are not reducing theimportance of self-control and discipline. It is common for Forex traders who are new to EA tradingto have an urge to "manual" trade using the EA. This is a mistake, first of all it defeats the purposeof the EA and second it can result in preventable loses.
  3. 3. With EA trading the EA is your Forex trading method. The EA trader is well advised to allow theEA to do its work without trying to manually over-ride it (Plan your trade - trade your plan).If possible, examine the back testing and forward testing results of an EA before you purchase it.Always demo trade with a new EA to confirm its operation before using it in a live account.EA trading is gaining in popularity by leaps and bounds. EA trading is part of a major trend towardincreased automation in the world of Forex. This trend is expected to expand and strengthen in theyears ahead.Being skilled in Forex technical analysis is always an asset but EA trading relies more on theForex trading logic of the EA than it does the technical skill of the trader.Self control and discipline are equally important whether you are Forex manual trading or EAtrading. Combine the personal qualities self control and discipline with using a well designed EAand you are on your way to profiting in Forex - the worlds largest market.Disclaimer - This article is for educational purposes only. It is not offered as investment or legaladvice. The reader assumes all responsibility for any and all profits or losses incurred by his or hertrading activities.David R. Jaymes makes it easy for you to shorten the learning curve and help you onto the Forextrading Profit curve. To claim your FREE 36 page eBook: Successful Forex Trading Revealed, visitthis site now: Forex Trading SiteArticle Source:http://EzineArticles.com/?expert=David_R_Jaymes==== ====Get Fapturbo - Forex Exchange Investing Software link Below:http://tiny.cc/forextradersoftware==== ====

Fapturbo Is The Only Automated Forex Income Solution That Doubles Real Monetary Deposits In Under 30 Days. No Backtest Tricks

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