Forex trading used to be confined to big corporations with massive budgets and tools. That was in the old days. Today, the currency trading market is open to all investors, big and small, and the Internet has made it super easy to take part in this market since you can do all of your trading from home.
There are many ways to trade Forex, but it basically boils down to manual trading and automatic trading. Since it’s pretty clear how manual trading works, let’s talk about how auto Forex trading work and what are your options.
First, a quick definition for the purpose of this article: Auto Forex trading happens when someone else locates trading opportunities and places the trades for you. Whether it’s a person or a software, to me it really doesn’t matter. It’s still not you and that’s the important thing.
The most popular way in which you can engage in auto Forex trading is with a special software, known as a trading robot. This software takes care of every step of the trading cycle for you. It’s based on internal algorithms which tell you how to pinpoint entry points in the market which are supposed to provide a high probability for success. The software then places the trade for you and later exits the trade at a time in which it feels that it should.
A robot is fully dependent on how good and flexible its internal algorithms are and how well they’re suited to the current market conditions.
Another way for you to be in the Forex market without actually taking part in it is through the use of an EA. An EA, or Expert Advisor, is a program which helps you locate trading opportunities. Often, this is a software which attaches itself to your charting software and gives you signals when and how to trade.
I call this semi-auto trading since you do place the trade yourself. However, the actual trading decisions are made by the software. You have the final say as you need to execute the trade yourself, but you’re still using a program to help you place better trades.
Naturally, using an EA or a robot can be a lot of fun, if it’s profitable. It requires very little work, reduces trading anxiety, and can be very profitable. The downside is that you’re not really learning anything about trading. However, for someone with little time and no desire to trade yourself, automatic trading can be the answer.