Thread: How You Will Choose a Automated Trading Strategy ?

Hi everybody,

Do you have trouble seeing the real benefits of your Forex trading? You may not have considered implementing an automated trading strategy.

What differentiates automated trading on Forex?

The answer lies in crucial words - automated, meaning without human influence, and unaffected by decisions based on human psychology.
In fact, FX automated trading is a method of trading various foreign currencies with a PC program, based on various analyzes to determine if a trader has to sell or buy one currency pair at a time.

Merchants can advance this program by teaching them to make decisions based on a series of signals from graphical analysis tools. The results of the application of this method are sufficient to justify the use of the Forex automated trading strategy.

Four main elements

I'll give you an example of how four carefully selected items can determine the choice of the best-automated Forex strategy. My checklist includes the following: description, input-output signal, application, and leverage.

But I want to emphasize that this list does not guarantee 100% success nor profitability. We all know the unpredictability of the market and it is not wise to ignore it.

The main objective of these four essential elements is to identify and put into practice automated Forex strategies, using the use of appropriate performance and increasing expectations that will result in greater trading opportunities.

In addition, you will also learn to minimize emotional involvement and stay disciplined in foreign exchange trading. Then you will be more clairvoyant in order to plan your transaction as efficiently as possible. Remember, not everything will always be what you want and it is very likely that you will make a loss.

The description

The first thing you should pay attention to when approaching the Forex automated trading strategy is their description. Your job is to determine the meaning of the strategy and to examine the main logic.

It is important to take into account the following words: the goal of profit, risk, and stop-loss, momentum, range, trend, and escape. You must be careful and attentive when reading the descriptions of different strategies.

Similarly, never underestimate the importance of the types of market conditions to be used with each strategy. Sometimes strategies only work well in compelling environments, and it can be very difficult to find strategies that do not work well in all market environments.

To meet your expectations, you must recognize the type of environment in which each strategy works best, and then apply it to the market with the same conditions.

Input and output signals

A lot of traders spend a lot of time worrying about incoming and outgoing signals in an automated Forex strategy. It is important to understand the general logic involved in the strategy, although we should not overestimate all the exchanges made by the strategy.

Overall, this strategy marks the beginning of hundreds, if not thousands, of future trades. It's more a collection of trades that interests us, not all trades. Try to see your trading performance as a basket of several trades, rather than on each individual trade. We have detailed some actions that you can use when reviewing trades:

You must place all your winning and losing trades in a separate basket. Find out what the average winner is or the average loser and look for strategies with average winners higher than the average loser.

You must review the trading performance in a basket of at least 10 transactions. Review your last 10 transactions and answer the following question: Does the bottom line add pips to your account or remove it?

The bottom line is that you have to find a strategy that adds glitches to a basket of the number of X transactions without problems.

Application

I have already mentioned the description and its use to determine the market conditions in which Forex automated trading strategy is designed to work. As long as you have good market conditions, you can search for strategies that match those characteristics.

Unfortunately, traders often ignore this step. In general, there are two types of market conditions that can have multiple variations. I will define this condition as a market with a tendency and not a tendency.

These two conditions are mutually exclusive. When the market is in trend, prices are stable and with confidence, progressing. You will see an upward trend and higher or lower highs, as well as a series of the downtrend of the highest and the lowest.

On the other hand, ranges are formed when the market does not rise or rise and, conversely, is traded on the side. What concerns you are the conditions that allow your automated Forex trading strategy to reach a good level of prosperity, then find a market where this strategy will be the one that will work the best.

Influence

We will now see the last item on our list - leverage. This is another area that is usually overlooked by automated currency traders. Traders often expect too much of a good automated trading strategy before using it, which can lead to traders using too much leverage.

This is usually due to the fact that traders tend to see only the positive side of the strategy and ignore potential losses. If you want to be safe from such a fall, you must pay attention to the leverage that you apply.

I recommend using leverage not more than 10 times more effective. If you are very careful, especially if you are starting out, you can use a smaller lever five times or even less.
The reason?
The advantage of using less leverage is that if your foreign exchange strategy experiences withdrawals, you risk only a small part of your account and you will have more capital to trade, compared to a cash flow effect. more important lever.

We hope this checklist will help you succeed in transactions with a higher probability. Very High Efficiency - you will begin to implement the best-automated Forex trading strategies using the appropriate leverage, as well as performance expectations.

Conclusion

Automated Forex trading is more suitable for advanced traders. The essential skills required are to wait and be as attentive as possible.

To a certain extent, an important task for you is to know what you really want, what to expect, and not to cheat with a totally unfounded imagination. This will be a big advantage for your business and you will see the benefits.

With regard to the things we discussed, it can be really helpful to always remember them. A description of the strategy is used to determine whether the strategy is right for you.
With this in mind, you will probably understand the difference between an automated Forex strategy and the goals you want to achieve.

The input and output signals indicate the appropriate conditions for the trader to enter or exit the trade - and how to revise the strategy. With respect to the application, you can find out if the strategy interacts well with a particular market environment.

Determine what type of trader you are and then apply as much leverage as you want. Pay attention and make sure that the losses you are able to sustain will not affect your core assets.

I hope this information will help you make profits and succeed in the future, and find the best-automated Forex trading strategy for you. Be sure to visit our article and our tutorial section for more information.

I think that best option is to trade on your own. It is quite questionable if these systems can be profitable on the long run. At least, I was not able to find one that can perform continuously with positive pips. Anyway, it is good first to test any robot, before you put your money in it

interesting

You need to move towards automation when you get confidence on manual trading. Yes, automated trading is beneficial and profitable if you have a huge knowledge about the technical and fundamental aspects of trading. Do you possess the knowledge about trading?