Can Forex Trading Software Work For You?
So I went looking for something to automate the process. Of course I found a lot of stuff, some good, some bad, some downright rubbish.
But I got what I wanted so let me show you how you can get the best forex software too.
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The Forex Autopilot System
Why is it a good idea to use the Forex Autopilot system? By not using forex trading software you are exposed to 3 problems.
I guess you have realised that there are massive gains to be made in the FX markets, right? I am also going to bet somebody has told you it's simple to do. Is this true?
Well, I can tell you that there certainly are very large gains to be made in forex, that is certain. Whether it's simple or not is a completely seperate issue. That's why you may need some assistance from the Forex Autopilot system.
On the surface, foreign currency dealing seems very easy to the uneducated. Actually it is, compared to the stock market that has millions of equities to monitor and select from. One more point in its favor is liquidity. Somebody will always take your trade regardless of how big and at any time.
Problem number one - To much information.
When exactly should you buy or sell? There are tons of forums and websites out there [that'llthat will] attempt to teach you the array of indicators that can be put on to your chart to signal a trade for you. However, the last choice is your own. EMAs, BollingerBands, Stochastics, MACD the list continues. There is so much data on your chart that it becomes extremely difficult to tell what is what.
Problem number two - Human emotion.
Okay, say you think you've decoded it all and you think it is giving you a buy signal so after a lot thought you jump in. What do you do next? When do you take profits? Wow, you gain a lot of pips and it looks as if the trend will continue so do not exit but stay in the game. You go to the toilet and get back and it has begunto retrace. Do you sell? Do you wait it out? You have to rely on your feelings.
Problem number three - Time.
The markets are open 24 hours a day, but are you able to sit in front of your PC all day monitoring the charts for signals? Even if you wanted to you would not be enjoying yourself as you would be constantly on edge.
The Forex Autopilot system can make more calculations per second than you can in a year. It doesn't have any feelings of doubt or over-confidence. Time is of no importance to it. All you have to do is set up the currency pair, time frame, stop-loss and take-profit levels etc and you can live a normal life.
5 Guidelines To Choose The Best Forex Trading Software
Use these points so you can ultimately select the best forex trading software.
1. Take note of the payment processor. First and foremost this will tell you if it's a rip-off. If the company that the software seller uses to facilitate your transaction is an honest provider with a checkable background then you are safe in that respect. Honest processors cannot afford to have rogues use their services. Anything that is sold via Clickbank can be relied on and is covered by their 8-week guarantee period.
2. Check their results. Always search out and request genuine trading results from the software seller. Account screenshots and jpegs of entry and exit points of winning trades are useful. Videos of the program in real time usage with the MT4 platform are very helpful. Watch the fluctuating price movements on the platform as they are likely to be real.
3. Check out user comments. Together with the testimonials on the product's website also look out for user feedback from independent sources.
4. Check out the price. The competition from software producers has gone up a lot lately and has created downward pressure on the end cost. It is still possible to pay thousands of dollars for software but mostly the packages in the $100 price area work just as well.
5. Check out the usability. Check the program's specs and its variable settings. Even though you will be able to use standard values on any good software, you ought to be able to adjust a fair amount of them as you wish. You will also want to pick your own settings as you mature as a trader and develop your own style.
This ought to help you pick the best automated forex trading software.
The Advantages Of Automated Forex Trading Software
The very fact that you have to think about it before answering the question shows up one big advantage that a computer has over you. Of course the problem you have is your ability to doubt things.
Expert Advisors
Automated forex trading software works by using an expert advisor or EA. An EA is a bunch of trading indicators that, when the conditions are met, signal a trade. They are put into a program script and packaged into some software. If you did the technical analysis yourself you could arrive at the same place, ie. a sign to trade. The big point is what happens next.
The problem humans have is they sometimes question the signals and doubt their reliablity. You might also get a hunch that it's not a good time to trade. We are talking about predicting the future after all. The advantage with the program is it doesn't hesitate.
Predictable Currency Pairs
The other big advantage with a program is its power not to get bored. It can effectively sit in front of the computer 24 hours studying the charts and applying technical analysis. Humans have a lot of difficulty doing this.
As most currency pairs behave in particular patterns it's no problem to program a computer to check them. They either trend or they range. This means you can take the main patterns of their movements and enter them into a program. All the program does then is look for these movements.
Money Management
But if it were this simple then most people would make money and not lose money like most do. Either you or a program will only be correct some of the time. For this reason you have to manage your money properly.
By adjusting your risk to return ratio you can make a profit but have losing trades.
Say you lost 50 pips for all losing trades, but gained 150 pips on your winners. Basically you only have to win one from four times and you wouldn't lose overall. This is obviously simplified but the message is your automated forex trading system doesn't have to be perfect.
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