Automated Forex Trading

Automated forex trading systems give you an advantage of trading multiple markets with multiple systems. Automated forex trading will allow your trades to be made at any time of the day or night and it does not require your presence at the time of trading. You will not be deprived of any profitable trade even if you are not there in front of your computer terminal.

An automated forex trading system will allow you to benefit from the profits of the forex market without your being an expert in trading. The trading program will execute the trades for you in automated forex trading through managed accounts. You will save your time as you are not required to do the actual trading yourself with a trustworthy auto trading platform.

You can manage multiple accounts from your automated forex trading platform simultaneously if you are keeping an eye on the market constantly. This is not possible with manual trading.

AUTOMATED FOREX TRADING IN THREE EASY STEPS

You have to check the available systems for automated forex trading. You can review the past performance of each trading system in the automated trading platform.
You have to select among the automated forex trading systems based on how you want to go about the forex trading keeping in mind the performance criteria. You can build your portfolio by selecting those kinds of trading strategies from multiple signal providers whose real time signal performance has been tracked on some live accounts and also verified by an independent third party.
You have to apply the selected automated forex trading system to your trading portfolio and then assess and gauge the performance. Once the strategies are applied to the account, the platform will receive real time trade signals from the strategies you have selected. The trades will be automatically executed on your brokerage account as they take place.

BENEFITS OF AUTOMATED FOREX TRADING

There are no maintenance fees or subscription costs to be paid.
You can custom build a portfolio based on a single strategy or a combination of strategies.
You can automate your trading to grab opportunities any time of the day or night.
You will get multilingual customer support throughout the day for five days of the week.
You can even use advanced strategies for management possibilities.
The platform is a web based application and no downloads are required.
You can trade confidently with the knowledge of experienced forex traders.

GETTING THE RIGHT AUTOMATED FOREX TRADING SOFTWARE

Automated forex trading software will make it easy to trade in forex markets. As forex is the most traded market in the world, forex trading is becoming more popular as a way to make money. Software manufacturers have come out with a large range of automated trading software. Your choice has got a lot to do with your preference of trading strategies. It will come down to a certain style and a model that you are most comfortable with just like a runner will get used to his kind of training shoes.

When selecting automated forex trading software, you have to reject any software that has not been tested. The software should have at least run on a live account for a minimum of six months and must reflect data showing a reasonable rate of return. When starting out, you may be tempted to get cheap automated trading software. The cheaper software is sometimes several years old and not built on a proven system. The trades can be hit and miss on it. You also have to see that the software has a support section or a forum attached to it.

There is a lot of choice available in the market. Getting the right platform for yourself will save you a lot of time and money when you enter live trading for the first time with automated forex trading.

Scalping Strategy

Many forex traders use a forex scalping strategy for taking in small profits after taking advantage of the momentum and the retracement in the prices of currency pairs. The real key to the technique is maintaining proper capital management and good discipline.

Forex scalping is one of the most frequently used and popular forex trading practices in use today. While using a scalping strategy, the traders have to call for closing the trade within five minutes or at a five-pip profit.

There are various forex scalping techniques that can be adopted. The common ones are:

USING CHARTS AS A SCALPING STRATEGY

Charts will be your best friends when it comes to various scalping techniques. This is mainly because charts are based on the action at the market that involves currency prices. There are many different kinds of charts.
o Bar Charts – These charts show rates for each time unit that is selected. They show four different rates indicating opening, high, low and closing periods.
o Candlestick Charts – The units that are represented are similar to the bar charts and the rates also represent the same periods as the bar charts. The length of the candlestick shows the range between the opening and the closing.
o Figure Charts – These types of charts are good to filter non-significant price movements to help the trader in determining the important resistance and support levels. They are focused on the price without the time specifications.
o Line Charts – They are the simplest form of charts representing in each time unit the closing rates by creating a linear line. They are good tools to set up resistance and support levels.

Forex scalping strategy relies on the price action of the currency pairs. With forex scalping strategy, forex traders rely usually on a set of indicator points to guide them on when to enter and exit the forex market. Their aim is to get part of the currency movement fluctuation after they have identified the prevalent currency trend.

SCALPING STRATEGY OF FOLLOWING ECONOMIC NEWS AND EVENTS

A simple form of forex scalping strategy is to trade in the forex markets based on events and news. The traders will look for the important news to be released. This can be identified easily by looking at the economic calendar.

As forex scalping strategy is aiming for small gains of five to fifteen pips per trade, most scalpers try to make it profitable for themselves by attempting as many trades as possible in the market. They can build up on their earnings slowly and steadily by entering and exiting the market with small profits a number of times in a specified trading session. A scalping strategy will involve opening a forex position and closing it within a few minutes with the motive of speculation.

PIVOT LEVEL SCALPING STRATEGY

It has to be taken into consideration that not all the currency pairs behave in the same pattern in a scalping strategy. When working on a forex scalping strategy, you have to be careful to factor in the tendencies and the volatility of the currency pairs that you are going to trade in. For example, a fifty pip move in the opposite direction with the British Pound-Japanese Yen pair will not be the same as a fifty pip move in the Euro-US Dollar pair. Another important factor is the time required for trading. Using a forex scalping strategy for the Euro-British Pound pair in the London market will not be the same when applied during the Asian markets. Different geographical markets have a varied effect on some currencies.

Pivot points can be used as excellent levels of resistance and support in a scalping strategy. The time when the price touches the pivot points, it bounces off like a rubber ball would. You have to calculate the pivot points daily for your selected currency pairs and you will have to calculate from 1700 hours Eastern Time to the next day’s 1700 hours Eastern Time.

An effective forex scalping strategy is a trading technique that is developed in the forex market where traders can take advantage of the fluctuation in currency exchange rates on a time based frame.