Points to Consider in Choosing an Automated Forex Trading System
Points to Consider in Choosing an Automated Forex Trading System
If you already have some experience in forex trading, you know how time consuming staring at charts and graphs to predict market movement can be. If you want to get that load off of your shoulders then you should try using an automated forex trading system. There are a lot of them you can choose from but you should be careful on choosing which software to use, here are a few points to consider when looking for an automated system.
1. What type of system do you need?
There are basically 2 system types available, the first is an automated signal system. This gives a signal to the trader as to when the optimal time to trade will be. The trader should constantly monitor the system and act immediately. The second is a fully automated system, in this system the trader does not need to enter the trade orders. If the preset market conditions are met, the system automatically does the trading for you.
2. How extensive was the testing that was done to the system?
You should choose a program that has passed both back testing and live market testing. You should look for a system that was preferably tested for at least 3 months in a live account, done over multiple accounts, and using different currency pairs.
3. How many currency pairs can this system handle?
There are some Automated Forex Trading Systems that are only optimized for one or two currency pairs. This handicap limits you trading opportunities because currency pairs often become erratic during certain periods of time. The more currency pairs your system is optimized for, the more trading opportunities are opened to you
4. Is the system complicated to use?
The system you choose should be geared for both experienced and new traders. It should be easy enough to use that you could already trade within 15 minutes, including installation time. An automated forex trading system is made so it makes life as a currency trader a whole lot easier. It should be easy enough to use that even someone who's still learning the ropes can start making money quickly.
