For example, if a software program using criteria the user sets identifies a currency pair trade that satisfies the predetermined parameters for profitability, it broadcasts a buy or sell alert and automatically makes the trade. A major advantage of automated forex trading software is the elimination of emotional and psychological influences determining your trading decisions in favor of a cold, logical approach to the market. That’s because automated software is intended to make your trading decisions unemotional and consistent, using the parameters you’ve pre-established or the settings you’ve pre-installed. An automated software program also allows traders to manage multiple accounts simultaneously, an advantage not easily available to manual traders on a single computer.
Serious traders can also benefit from automated software, as their other interests, obligations or occupations may not afford them the time they need to study markets, analyze charts or watch for events that affect currency prices. Of the numerous automated forex trading programs offered on the market, many are excellent, even more are good but are not comprehensive in their features and benefits, and a few are less than adequate. In some cases, software providers will provide authenticated trading history results to demonstrate the efficacy of the programs they’re selling. Below, we’ve outlined a few of the key selection criteria for traders considering automated programs. Fit Automated Forex Trading Software to Your Needs.
Automated trading systems vary in speed, performance, programmability and ease of use. Therefore, what serves one trader well may not be acceptable to another. Remote access is also essential if you’re a frequent traveler or intend to be away from your computer for an extended period. The service provides extremely fast access, isolates the system for security purposes and offers tech support.
Firms may also offer programs with return guarantees after purchase and during a specified period of time. Therefore, if the user decides the program is unsatisfactory, those firms will allow you to return it for a refund. It’s also worthwhile to check out online customer reviews of many of these programs for an additional viewpoint on their virtues and flaws. Since automated programs can be a costly investment, make sure firms can provide videos of their software programs functioning in the market, buying and selling currency pairs. Additionally, it might be helpful to request screenshots or video walkthroughs of account action with trade prices for buy and sell transactions, time of execution and profit posting. When testing a new software system, run the tutorial or training function to see if it’s adequate and answers all of your questions. You may have to call the support desk for answers to complex questions about programming, such as setting the buy-sell criteria and using the system in general.
If a “Help” link is offered, determine ease of navigation and usefulness. Firms may also offer a free, no-obligation test of their software so that the potential buyer can determine if the program is a good fit. If this is the case, test the program’s installation and user experience functionality. Also, make sure the software is programmable and flexible in the case you may want to change any pre-installed default settings. Trading approaches will vary in risk, with programs geared to scalping a few points in a trade to taking larger bets. The user should be able to dictate which approach to use, and the strategy may be adjusted in either direction. Customer product reviews that are posted online are a good source of information about the software.
It’s highly advisable to read these before buying. Price competition currently favors the consumer, so shop around for the best deal, but don’t sacrifice quality for price. Prices for trading packages run the gamut from hundreds of dollars to thousands. Look for a high level of technical and service support. This is essential for traders at any level of expertise, but is especially important for beginners and new-comers.