Automated Forex Trading

Automated Forex TradingAutomated forex trading  refers to the use of computer software to trade foreign currencies automatically based on pre-defined rules of trade entry, exit and management. Many forex traders called system traders have programmed their forex trading system into the computer so as to free up time for themselves for other endeavours or leisure. The computer software, usually referred to as an auto trader or forex robot, executes trades based on pre-set rules when the trader is away from their desk, on vacation or sleeping. The main benefits are that system traders are able to avoid missing good trading opportunities since they can't possibly watch the markets 24/5 alone and are able to avoid psychological trader problems of indecision as to the best time to enter or exit a trade. At the simplest level, automation has been implemented with limit order, stop loss order, take profit order and trailing stop order. Automated forex trading systems takes this a step further by allowing the trader to automate the entire trading process. Some automated forex trading platforms provide a graphical user interface (GUI) that makes it possible for forex traders to develop their own trading software without any programming knowledge. Others require that you learn the programming language and write up the script that will automate the trading process. Furthermore, there are two modes in which automated forex trading systems work namely server-based and client-based trading modes.
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Server-based Automated Forex Trading Systems

Server-based automated forex trading systems are clearly the best because they run on the server. The client computer and software do not have to be up and running for the automated trading system to work. This gives the forex trader even more time to themselves and practically nothing else to do after setting up their account. If you would like to develop and test your forex trading strategy and trade it live automatically if profitable, then FXEngines is the best place to go. You may also want to consider subscribing to FX-Auto, but you will not be able to develop and use your own trading system except pick from a pool of pre-selected systems. The drawback with FXEngines is that their back testing service, HiveTrader.com, is currently not operational so you can only set up trading systems you have back tested elsewhere. Also, you cannot claim intellectual property rights to the trading systems you develop on FXEngines, they retain the intellectual property rights to their platform, as well as, the trading systems you build with their platform. However, if you don't mind the intellectual property rights, you can use Forex Strategy Builder to develop and back test trading systems without any programming skills before using FXEngines. With these automated forex trading systems, the trader also has the ability to execute manual trades or close system generated positions. Thereafter, all that will be left for the trader to do is to make withdrawals and review their portfolio once in a while. To learn more about automated forex trading systems, visit Forex Automatic Trading Systems.

Client-based Automated Forex Trading Systems

The bulk of automated trading systems out there are run on the client computer. Client-based automated forex trading systems require the client application to be up and running before the automated trading system can work. This means that the trader has to maintain a steady power supply and Internet connection. Sometimes, the trader is also required to confirm orders before they are placed in their account by the broker. This is a costly proposition compared to server-based systems, but it does solve psychological and fatigue problems that traders usually have. We recommend CMSFX VT Trading Platform's Trading Systems and Meta Trader Platform's Expert Advisor for client-based automated forex trading, one reason being that they perform well with low-speed Internet connection. You can develop a VT Trading System without any programming skills and there is a JavaScript website for developing Expert Advisors without any programming skills.
Internet connection and power supply challenges with running client-based automated forex trading systems can be surmounted with VPS hosting for forex traders thereby making it possible to use any broker offering automatic trading feature.

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