How valuable is an automated trading system? This depends on how large the forex trading market is. The size of the market will determine the importance of the automated trading system. Forex market is the largest market in the world in terms of average daily turnover and also average revenue per trader. It is also the largest market in terms of people participating.
With a large number of participants, the need is real to switch from a manual to an automated trading system. This automated system is of extra advantage to the speculators because they concentrate on the price fluctuations of several foreign currencies to make good profit. To determine trades, the real time data analysis will help them and also give advantage to them.
There are many automated forex systems for trading that are available in the market. Some such systems are offered even for free or as part of the trading accounts from the forex brokers and agents. These system packages that come complimentary are basically elementary trading systems. You will have to make extra payments if you want to have additional features.
There are two types of automated forex systems:
1. Desktop based system – All the forex related data are stored on the hard drive on your desktop. This system is not very popular because most of the forex traders feel that their data are exposed to computer virus contamination or other security problems. The worst part of their fear is that when the computer malfunctions for some reasons, all the necessary information may be lost or it cannot be retrieved unless they have made arrangement with some back-up files of their own. This system is also little expensive when compared with the other types of automated trading systems.
2. Web-based system – The security of your forex account and other data are provided by your web-based provider. These are hosted on secured servers. This system is convenient as there is no software required and it will be universally compatible with your internet browser.
It is always safer to try different automated trading systems and their demonstrations before you start using them as you will be able to decide on a particular system that will suit your needs and personal preference. It is to your advantage if you use an automated forex trading system for your trades even if you are a small scale trader.
An automated system can even triple your productivity while it cuts down on the effort that is required to do so. The forex signal alert software lets you know when the trade is ready. When you have been alerted on the optimal time to trade, you just have to simply get ready and make the trade before you return to the currency pair that you were tracking manually. The forex signal alerts you by means of a computer pop up, an audio signal or a text message on your mobile.
The automated forex trading system handles everything, including the trade itself. It does not become easier than using an automatic forex trading system that recognizes both the buying and the selling opportunities.