HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

Automating Your Forex Trading


As the forex market moves enthusiastically into the electronic age, individual currency traders are increasingly turning to software products that help them watch the market and even assist them in performing the actual mechanics of trading without human intervention.

This process of automating trading activities still has quite some way to go before such software can replace the flexibility of the experienced human trader. Nevertheless, it can be worth exploring for the curious forex trader who wishes to see if automation may eventually make their lives easier.

Trading Robots


Perhaps the most popular forex software products currently offered on the retail market are automated forex trading software packages or forex robots. Much of the attention is focused on commercially available robots, although a number of independent developers have also written such programs and made them freely available online.

These robots often operate as Expert Advisor or EA software within popular forex trading platforms like MetaTrader4. Such programs have attracted considerable attention from both new and seasoned forex traders alike.

However, suspicion has arisen about these products because they tend to be marketed by extreme sales pitches that often seem to considerably overstate the potential for profit when using the system.

Accordingly, if you do decide to purchase any such software, you will very probably want to test it thoroughly before you allow it to take charge of any significant portion of your trading portfolio.

Initial Trading Robot Evaluation Steps


To evaluate a commercial forex robot, the first thing you will want to do is to purchase and download the software. You will then need to install it immediately into the trading platform you will be using. At this point, you can be evaluating the software's ease of use and the quality of the vendor's customer service.

Once you have finished these initial set up steps, you will then want to run some basic tests that can also apply to evaluating non-commercial automated forex trading software.

In addition, if you think you might want to return the software if it does not meet your minimum expectations, then you will want to take these testing steps for the software within its trial period which many software vendors stipulate with their money-back guarantee. This trial period is typically sixty days for products purchased online via Clickbank.

The Robot Testing Stage


A typical set of testing steps for forex robots would include the following:

  1. The first step would be to back-test the software. This involves testing the robot's performance over one or more time frames using historical price data for the currency pairs you will want to use it on. This can often be done using the trading platform that the robot operates with. Of course, you need to keep firmly in mind that any robot's past performance is not necessarily indicative of its future performance.

  2. The second step would involve running the robot on a demo account in order to evaluate if the robot has comparable results in real-time trading situations. This should help give you a better sense of how the robot is currently trading than its historical performance.

  3. If the robot has passed both the first and second tests satisfactorily, then the third test involves trading the robot in a micro account to make sure that it performs sufficiently well in a live trading environment. You can open a micro account with one of these forex brokers. This step gives you a chance to make sure that dealing spreads, order slippage and unfilled orders that are often seen in real trading will still produce acceptable returns.

If any forex trading robot you purchased fails one or more of these evaluation steps then do not hesitate to return it immediately for your refund within the specified return period. Also, be aware that for software products purchased via Clickbank, you will usually need to request your refund from Clickbank and not from the product vendor.

Customized Trading Algorithms


Many forex traders eventually find themselves tiring of the stresses involved in trading, especially after the initial fun of trading has worn off. If they have developed a successful trading system in the meantime, then they often wish to automate it by creating their own customized trading algorithm.

Doing so will allow them to set their trading algorithm running as it watches and automatically enters trades in the forex market for them while they take a back seat in the overall trading process. We'll look deeper into how to construct your trading system in the next step of this article series.

Choice of Broker for Automatic Trading


Picking a supportive online retail forex broker for the kind of automation you have in mind can be very important to the overall success of your trading robot.

Depending on your needs, you will want to make sure that the broker you select supports either the trading platform your commercial robot functions with or an API interface that you can learn how to automate your own trading algorithm with.

Also, choosing a broker with competitive spreads can make a particularly strong difference in trading performance when using scalping robots that often trade frequently and for just a few pips per trade. Such robots often require the best possible pricing in terms of dealing spread to show a consistent profit.

Accordingly, if you will be using a scalping robot, you will not only want to find an online forex broker that supports the automated forex software you have purchased, but you will also want to find one that has especially tight dealing spreads and either no or very low commissions per trade.

Other key considerations when it comes to forex brokers are the quality of the broker's deal execution; the broker's dealing commissions and rollover fees; and whether or not orders are subject to slippage in fast markets.

#source


RELATED

Which Citizenship by Investment Programs are Crypto-Friendly?

With the evolution of the digital era, the crypto industry has taken the world by storm. In most countries, digital assets are considered a commodity rather than currency...

The Best Commodity Trading Tips and Tricks

Commodity trading is where various commodities and their derivatives products are bought and sold. Commodity markets include various raw materials...

What are defensive stocks and why you should consider them?

The market has fallen sharply this year, and investors have seen losses. Question: Can defensive stocks help hedge against risks? What are their advantages?

What Factors Affect the Price of Cryptocurrencies?

Do you want to trade cryptocurrencies but need to know when it is better to sell or buy them? What happens to the prices in the crypto market, and what should you consider?

Warren Buffett’s Portfolio: Stocks Berkshire Hathaway Is Buying

Billionaire Warren Buffett runs the Berkshire Hathaway fund. It is the leading investment fund in the entire US. And it’s all due to the business acumen and iron fist of one of the most...

Forex trading sessions

Currencies are available to trade 24/5, anywhere globally, while cryptocurrency is available 24/7. However, there is server maintenance when trading cryptocurrencies...

Interest rates: why do they matter so much?

There is nothing new about it. You’ve heard about it. We’ve heard about it. The Federal Reserve, the European Central Bank, the Bank of England, the Bank...

Bitcoin trading: how to trade bitcoin in 2020?

Bitcoin has become an extremely popular financial tool in the past few years. However, not many people are familiar with the basic concepts of this cryptocurrency...

What Are Crypto Liquidity Pools?

Liquidity pools are a massive part of DeFi, or decentralized finance, one of the essential parts of the crypto world. By understanding what is possible with the liquidity pool...

Commodity Trading and its Role in Energy Transition

The global energy landscape is rapidly transforming, driven by the need for sustainable and cleaner energy sources. The challenges of this energy transition are vast and complex...

Libertex: How to invest in crude oil

Crude oil prices are affected by perceived shortages, excess supply and weather conditions, among other things. In addition, the price of oil is often considered one of the main benchmarks...

Top Trading Tools to Help You Make Profits in Forex

The forex business is a lucrative one, with several traders making the kill daily. However, while a lot of successful traders make do with some professional...

What is a Zero-Knowledge Rollup?

Blockchain technology is revolutionizing the way we store, transmit, and validate data. However, as the popularity of blockchain technology grows, so too does the demand for faster...

How to Trade Forex on News Releases

A great advantage of trading currencies is that the forex market is open 24 hours a day, five days a week. Markets move because of news, so economic data...

How Can You Best Trade Free Float Stocks?

Understanding free float and the main features of their subgroup, low float stocks, is important to many traders. This article provides essential information on this topic to help them...

Forex vs Stocks: Differences, Similarities, and Which to Choose

The forex markets and the stock markets are two popular choices for investors and traders seeking to capitalise on market opportunities. While both markets offer potential for returns...

Is It The End Of The Cryptocurrency Bull Run?

A recent selloff across the cryptocurrency market has turned greed to fear, and in a flash nearly a trillion in value was wiped out from the market cap of cryptocurrencies...

Banking Forex: advantages and disadvantages

Without exaggeration, currency pairs can be called the most popular financial instrument. The instability of the exchange rate, combined with the high threshold of credit...

What stocks of the US banking industry are to watch for?

The economic shock caused by the COVID-19 pandemic hit the securities of leading US banks. During the recovery of the US stock market, the financial sector became an outsider...

Oscillating Indicators

As their name suggests, oscillating indicators are indicators that move back and forth as prices rise and fall. Oscillating indicators can help you decide how strong...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.