For any beginners it has always been a dream to be able to make money immediately, without waiting to accumulate experience. For this reason, they were born autotrading systems that allow you to make profits on forex even if you are completely inexperienced.
The autotrading is a trading strategy where buy and sell are placed automatically, based on the settings of a software system or platform.
The buy or sell orders are sent out to be executed in the market when certain conditions (pre-determined) are met. The advantages are greater profits, fewer losses, especially given that autotrading completely erases the emotional compulsive factor of online trading.
There are investment newsletters that provide an autotrading feature where, based on the newsletter’s recommendation, an order to buy or sell a position is sent to the subscriber brokers automatically.
The main advantages of auto trading are:
- There is no need for the physical presence of the trader to operate on the forex market, even around the clock. The autopilot continuously monitors and performs operations based on the criteria of the trader. The gain is also not spending free time to trade but doing something else.
- Compatibility with multiple platforms and generally accepted by most forex brokers.
- It is simple to understand, to use, to be exploited to the fullest. It is generally the choice of many traders who, aware of the huge profit potential of forex, cannot succeed or get overwhelmed by emotions. The software or platforms are generally autotrading crossplatform (they work on windows, mac, etc ..) and they are extremely easy to use.
Paradoxically, the simplicity is also a disadvantage. In the medium to long term, however, requires a bit of practice to be mastered to the fullest. This can be a wall for many traders who are lazy or disinclined to learn.
How do autotrading systems work? The principle of operation is very simple, it is based on a copy of trading strategies of the most experienced traders.
An automated trading system is a computer program that automatically executes trades with the goal of making a profit. Its function includes entry, money management profit taking, stop outs, analysis, etc… Usually this is done by the so called “Expert Advisors (EAs). They are little programs in form of add-ons (mostly) for the Meta Trader platform – just like the add-ons that is possible to install on the Internet browser.
They have a double advantage, both for the trader who copy and for the trader who is copied. The first can earn setting up successful strategies that never would have imagined. The second does not receive any damage and if it is copied by many traders, he is able to influence, partially, the market trends in a most favorable way, increasing his earnings.
In short, the autotrading systems based on the copy developed by the top forex brokers are having a great success among Italians and their success is growing day by day.
Autotrading systems are used typically by active traders who enter and exit positions at a much higher rate than the average investor.
There are also a wide range of systems that differ on the conditions used to generate the buy or sell signals. Typically, the criteria used are more technical in format and it focuses on technical indicators and price movements.
These autotrading systems are used in a wide range of markets including stocks, futures, options and Forex.
The Forex trading industry has started using different auto trading platforms to provide maximum return with minimum risk. Being comfortable with the platform that you are trading on is essential to the discipline required when executing trades.