Automated trading systems (ATS) are simply programs designed to create orders and automatically submit them for you. These can go to an exchange board or a market center. However, the ATS do not have total control over your orders. You can get under the hood to define a set of rules for the system to use for making decisions. You can write in a trading strategy that is defined by technical analysis or according to electronic input from various sources. One advantage the automated trading system has over manual input is that it is very, very fast. No one person could possibly carry out repetitive tasks as quickly as the automated trading system can. So while you’re off relaxing and taking it easy, your automated forex trading system can be making you money.
Using a Forex Automated Trading System
For the forex amateur who is just starting out, the automatic trading system offer a real boost to getting a foot in the door of trading. Without too much trouble or time spent, you can actually set up the system to make decisions for you and place orders. The algorithms behind the program are created by skilled professionals who have experience with analyzing market trends. This can take the place of hours, days and weeks of actually studying how forex works, following analytical charts and learning from the pros. Once your program is up and going, you can begin to watch its trading patterns. They should be consistent, since the program is not affected by mood swings, sudden inspirations or emotions. The trades will be strictly according to the algorithms and analytics that are working furiously behind the scenes.
What You Need to Get Started With Forex
Since all you really need to get started trading is a computer and an internet connection, you can begin trading whenever you’re ready. Choose from one of the automated forex trading programs. Different companies or brokerages offer programs for payment or even for free, but you’ll need to make your selection carefully. Remember that you’re putting your money into the hands of this program! Check out who developed the program and created the algorithms found within the modules. Pay attention to price as well, keeping in mind that the free versions might end up costing you more than those that you pay for.
Running the Automated Trading Program
Once you’re set up, just plug in the program and go! Whether you are a beginning forex trader or an advanced one, you can still earn money using an automatic trading system. The program will indentify signals, taking into account various spread discrepancies or price fluctuations. It will also program in the current news reports that can affect prices or fluctuations in currency pairs. Understanding the analytics involved in your program will help you determine how to use it to make the best trades. Even after all of your careful selection and monitoring of the program, you will still get the chance to either approve or disapprove the trade before it is actually made.