Automated Forex Trading Is Faster Hence Able To Trade Across Several Markets

The Forex autotrading is the slang used to represent automated Forex trading or trading in foreign exchange. The trading in this case is executed by computers that use specialized trading software designed for the purpose. Trading strategies are integrated in to the computer based application and the execution is done by the computer systems. Typically programmed sets of criteria make up the strategy but they can also be created visually without using any programming where the set of criteria is combined.

The automated Forex trading came in 1999 after the emergency of online retail trading and internet based brokering firms designed retail Forex platforms for the use of traders to buy and sell Forex on sport market.

The automated Forex trading could be segregated in to two types and they are: a robotic Forex trading which is completely automated trading system and this method is known as "black box trading" or "trading machine" as classified. These systems execute the orders according to the algorithm written by their creators. It is already decided by the creator what aspects will make up the trading script. This will contain price, timing, or quantity and the order will be automatically initiated by considering these aspects. Only technical parameters such as lot size, stop-losses and take profit and risk parameters can be tweaked by the user and it is the only way of interfering with the automated system. Rest of the controls is governed by the dictum of the trading script.

The other is the signal based Forex generators, where you execute orders manually as they are generated by an in built algorithm within the trading system. This system finds out and highlight possible entry and close signal, which the user would execute manually using the services of a broker. An Expert advisor trading will be required to execute the trading orders. There are distinct advantages using an automated system and they are:

More orders for each market can be generated by the auto trading environment, which a human operator will find tough to replicate. The action can be replicated across time frames and multiple markets. Human traders fall prey to psychological swings and the automated system is unaffected by such aspects. This applicable especially when using a mechanical model for trading, this is developed typically on the supposition that the trade entries that are flagged would be taken in the real time trading. However there is a marked disadvantage with the automated system because the unregulated market of Forex trading attracts scams.