Automated Forex Trading Systems
Automated forex trading systems also known as forex robots are computer programmes designed to make trading easier. There are two types of systems that you can get and they are the fully automated systems and the semi-automated systems. The system you choose depends on the type of trading you are doing and the level of involvement you want. It should be noted that not all traders can use robots as they need to suit your trading style.
Fully Automated Forex Trading Systems
Fully automate forex trading systems are the classic forex robots that people imagine. These programmes come with built in trading algorithms which define the way the robots views the forex market. The algorithm tells the system how to identify trading signals and when you trade based on these signals.
With these fully automated systems the trader generally has very little input. The trader does not determine which trades are completed or when the trades are completed. The only input from the trader comes when the robot is set up. During set up the trader inputs the risk exposure levels and other robot settings. All the decisions regarding the trades are made by the robot.
Semi-automated Forex Trading Systems
Semi-automated forex trading systems are generally the signal based robots. These robots are programmed to detect potentially profitable trade opportunities and alert the trader to them. These robots are used by new and experienced traders to identify market opportunities they would not be able to do on their own. Once the system has identified the opportunity it will relay this to the trader through a series of trade signals. These signals indicate the entry and exit points of the trade and often include some analysis of the trade.
These systems require some input from the trader not only in the execution of the trade but in the setting up of the robot as well. When the robot is set up the trader generally limits the currency pairs the robot looks at. This limits the amount of signals the trader receives so the trader can take the time to identify the most profitable. Semi-automated robots do not enter the trades onto the market like the fully automated robots do. This is left up to the trader and the trader does not have to enter every signal they receive.
Which Robot is Best?
Once you know about the different robot types you may wonder which one is worth purchasing. The suitability of the robot relies heavily on your trading strategy and the amount of time you have for trading. Traders who wish to actually work on the market should look at the semi-automated robots while traders who do not want to do anything should look at fully automated robots.
Before you buy a robot you should look at the reviews it has received and whether you can test it or see the robot in action. Objective reviews tell you whether the robot is user friendly and actually does what it is meant to. Genuine trading systems come with a trial version or a demonstration which allow you to determine whether or not the robot works.