Automated Forex Trading System: Faster Execution Means Increased Trade Volumes. Interesting Info to Be Aware of
The notion of automated Forex trading system is mind-catching.
Before the automation of the Forex market, exchange-traded futures market was the earliest to switch on automation. Then, the traders on the Interbank spot FX market decided to catch up with the most modern trend and moved also to the new system.
Automated Forex trading system enables traders to perform their trade on spot Forex market automatically and anytime of the day, based on existing technical indicators and custom trading rules. There are a variety of features included in the automated trading system, for instance:
• Automatic trailing stops specially if the trader is losing in a specific trade position;
• Account equity management;
• Stop and/or limit orders;
• Discretionary market orders; and
• A range of technical analysis indicators within your discretion for enabling trend-following systems.
Automated Forex trading systems supports most of the following indicators (the technical support will be dependent on the technology used and the accessible features of the system):
• WMA (weighted moving average);
• EMA (exponential moving average);
• SMA (simple moving average);
• VMA (variable moving average);
• TMA (triangular moving average);
• TSMA (time series moving average);
• WATR (wilder’s average true range);
• VHF (vertical horizontal filter);
• Standard deviation;
• Trailing stops;
• Mass index;
• Fixed limits and stops, and others.
The triumph of the automation process to the Forex market is attributed to several factors, such as the next:
• Its capability to make or perform trades in real time. Owing to the automation, a trader can close trades within a few milliseconds. It is not possible in manual systems, as previous trades are generally closed after several hours. Also, there are furthermore instances where a trader incurs several losses in a row that prevents him from making any new transactions. Thus, with automated Forex trading system, this problem could be avoided.
• Its capability to greater diversification. With automated trading system now in place, a trader can trade in different local as well as international markets within varying time zones. In other words, you can place trade or close deals with various traders from a variety of markets around the world even in the middle of the night.
• Its capability to analyze short-term data. This feature is not accessible in manual trading system. Therefore, traders using automated system have the larger advantage in view of the fact that they can foretell market trends in less than an hour.
If you will join the features and the benefits of automated Forex trading system, it will give you a solid conclusion: with the Forex market on automation, you will be able to place more trades on a single day, so increasing the average volume trades day by day.
To further explain the conclusion. Let us take the next scenario: If you are trading using the manual system, you will see that it takes time before a trader confirms if he will allow your deal or not. He will look on the market state initially plus the exchange rate of the currencies that you are trading with. Thus, if it takes time before a transaction will be finalized; there would be fewer trade volumes.
Now, if you are using the automated Forex trading system, the estimation of exchange rates and market situation could be done within a few minutes, in view of the fact that Forex data are now updated in factual time. Probably after less than an hour, you will be able to take your position whether you will push through the deal or not. If a Forex deal per trader is averaging within an hour, a single trader can place as much as 8 trades within the standard trading hours (if he is following the day trading schedule) and additional trades beyond the regular trading hours. There are thousands of traders in just a single market who can place such standard number of trade per day. Combining it with the number of Forex markets around the world, the figure is just giant sufficient.
As well, the technology is changing constantly, so there is a tendency that the average number of trades per day will enlarge, thus a possibility of increased trade volumes on daily basis. With faster trade execution, that is a definite possibility.
Be appreciative, the Forex market is now at the helm of automation. Dealings are now faster, and earning money through Forex trading is at the present easier.
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