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Automated Forex Systems

Automated Forex Trading Systems

 

Market Demand & Supply and the Trading Trend

Forex trading is a global arena where many different types of traders are competing with its other. Day-Traders, Swing Traders and Long Traders are all opening positions for just one reason, to sell higher. Either selling higher or lower, the demand and the supply that they create due to their expectations is creating also liquidity in the market and thus Trading Volumes. This trading market activity is of course just one piece of the aggregate Forex Market activity, which also includes transactions from central and commercial banks, capital investors and large firms. But in short-term periods this kind of trading demand and supply is capable of forming a Real Trend. This is a speculative trend that tries to profit from forecasted market conditions, and here comes the role and the reason for the existence of Automated Forex Trading. Automated Forex Trading is taking into consideration basic factors and market conditions that are able to form short-term trading trends. By using technical analysis and a Trading Platform as a host these automated systems try to identify and to evaluate the current market conditions by comparing them to historical price behavior. This historical price behavior can be described also as the Market Pattern.

Here are some popular ways of Automated Forex Trading:

1) Automated Forex Trading Signals

Trading Forex using Automated Signals is very popular. This can be done using many different kind of platforms:

a) Automated Signals using the MetaTrader4 Platform

The MetaTrader Platform is a fantastic piece of Software that can be downloaded by anyone and be used for free. Respect goes to MetaQuotes which created MetaTrader as a freeware system. Based on his popularity MetaTrader4 is used by almost all automated Forex Brokers and all automated Forex signal providers.

MT4 Automated Signal Providers:  Omni Forex Signals  Traders Elite Signals |  Mentoring Club Cash-Flow Signals  Just Forex Trading Signals

Forex Signals Comparison:  Compare Forex Signals at Trading Center

b) Automated Signals using other Trading Platforms

Automated Forex Trading can happen using other popular platforms too. For example using MetaTrader5, NinjaTrader or MirrorTrader.

MT5 Automated Signal Providers: Traders Elite Signals

For those seeking to review and to compare Automated Forex Platforms, here is a comparison table at the partner site ForexAutomatic.com.

 Compare all Automated Forex Platforms at Forex Automatic

c) Automated Signals using Copy-Trading Networks

There are many copy trading networks available today, forming a New Social Trading Era. The most popular social copy-trading services are ZuluTrade, MirrorTrade and the eToro’s OpenBook. Copy Trading is certainly a pretty innovative way to trade Forex but there are some concerns too, regarding the Ranking Formula that they use. Copy Trading is all about Copy-Traders Rankings. In other words, the effectiveness of these copy-trading systems is based on the way that they rate all the Copy-Traders / Signal Providers. The efficiency of these ranking formulas is highly disputed today. Don’t forget that most of the times these services are making money from trading volumes, so it is a logical conclusion to assume that these ranking formulas may be more oriented towards traders that are generating volumes rather to those that are generating real profits. There is a conflict of interest between these services seeking for volumes and traders that are seeking for profits.

 ZuluTrade

EToro’s OpenBook 

2) Automated Forex Trading using Forex Robots (Expert Advisors)

Automated Forex Trading using Forex Robots is also a very common practice nowadays, here are some popular applications. 

a) Forex Robots running on MetaTrader4 Platform

Most of Forex Robots available today are running on MT4 environment. Before using this kind of Robotic Software for real money you should first test it on a demo account. Keep in mind also that in order to trade with maximum winning probabilities you should better use a VPN Forex hosting service (for example » Forex Hoster).

Some Robots need to be adjusted before start trading: » Adjusting Forex Robots Courses

MT4 Forex Robots: » Forex Megadroid Robot | » Million Dollar Pips Robot | » WallStreet Fx Robot | » PipJet Fx Robot

b) Forex Robots running on Other Platforms

There are Forex Robots available for other Trading Platforms too, for example ZuluTrade:

ZuluTrade Forex Robots: » Forex Megadroid Robot | » Million Dollar Pips Robot 

Forex Robots Comparison: Compare Popular Forex Robots at Trading Center

The last method for automated trading is using sophisticated Trading / Arbitrage Systems.

3) Automated Forex using Sophisticated Arbitrage  Systems

These sophisticated systems exist and are owned by specialized Fx trading companies. These companies are usually ‘opened’ to investors who are willing to invest more than 1 million USD. Some of these systems are using and analyzing Technical Analysis to predict the market trend but the most profitable ones are those which are capable of profit from arbitrage.

Arbitrage and why it has a Limited Use

Forex Arbitrage is making profits from exploiting pricing inefficiencies. That means buying a currency pair and at the same time selling another one of an equivalent value. After a short-period, both positions are closed.

In order this technique to be profitable you don’t need just the software (usually robot) to do the job. The existence of a Neuronic Algorithm is accompanied by professional traders who are adjusting continuously these systems in order to adapt to new market developments. We are talking about million-second markets so the need for state of the art technology is absolutely crucial also. State of the art hardware technology involves Super Powerful Computers and Internet Connections but also ECN brokers offering a trading environment of minimal slippage and close-to-zero spreads. Usually these systems are trading exclusively EURUSD and GBPUSD markets where liquidity pushes down the spreads charged by brokers. Not every trader can access these premium technological solutions, so the effectiveness of the arbitrage is limited only to high-professional traders.

Final Words

Automated Forex Trading is not a scam but it is a kind of trading that needs to rely on professional traders. Any automated system needs adjustments, and that job can be done only by pro human traders. On the top of the Automated Forex Pyramid we can find the Sophisticated Arbitrage Systems explained in (3) but the participation in these systems by common traders is very difficult. Participation is limited only to those investors who are holding and who are willing to risk a great deal of money. As concerns the other two methods (1) and (2), they can also prove profitable. Certainly not all of these commercial automated systems are trading profitable, and maybe most of them don’t. So it is much better for traders to use any Trial Period available and a Demo before starting to trade for real money. The effectiveness of each system can be disputed so the filter of the services presented in this article was mainly based on popularity.

MT4 Downloads: ► MT4 Terminal | ► MT 4 iPhone| ► MT4 Android | ► MT Windows Mobile | ► MT4 PDA

 

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