Forex Auto-Trade Systems

The Basics of Auto-Trading

Forex auto-trade refers to a method where a trading system (hardware/software) automatically executes and modifies trading orders in the Forex Market on behalf of a certain trading account. These orders follow certain criteria (rules) which are predefined by the user of the system. These criteria are based mainly on price and volume metrics.

The idea of Automated Forex Trading
 
The idea behind an auto-trade system is 24-hour/365-days trading without the impact of human psychology and distress. Auto-trading systems can trade the Forex Market without any delays, but also they can trade multiple markets at the same time.
 
Two General Types of Auto-Trading

There are two major types of Forex auto trading:

1) Copy-Trading
This method concerns automated-execution based on incoming trading signals. There are many signal providers in the Forex Market, most of them require a monthly subscription.
Tip: If you are about to buy a signaling service, search the web for information regarding the past performance (minimum 2 years) and the team behind.
 
2) Trading using Forex Robots
Forex Robots or else Expert Advisors incorporate mathematical algorithms to evaluate several technical factors in order to determine when to buy and sell the market. Traders have only to adjust the parameters and the whole system operates by itself on a 24/7 basis. There are many Forex Robots that don't work, so traders must review thoroughly the past performance of an Expert Advisor before start using it.
Tip: Whatever auto-trading method you decide to apply, test it on a demo account before trading for real money.
 

 

Testing Forex Robots

There are two main ways to test the performance of a Forex robot:
 
1) Testing the Forex Robot Backward
A Forex Robot may be tested using the historical backtesting tool on MetaTrader-4 or another platform. By this way, we are able to evaluate its performance in the past.
 
2) Testing the Forex Robot in Real-Time
A Forex Robot may be tested in real time, using a demo account. In this way, we are able to evaluate its performance in current market conditions.
 
 

Using a VPS Service (Virtual Private Server)

VPS means Virtual Private Server and it’s a hosting service for Expert Advisors. Users of VPS are offered with full access and control over a CPU, RAM, and HD space. VPS hosting offers stability and flexibility for automated-trading applications.
Forex Robots require a computer to be turned on 24/5. This can be overpassed using a Forex VPS hosting service. VPS hosting costs about $30 on a monthly basis.
But there are Forex brokers offering a VPS for free:
 
Free VPS: ► FBS | ► HotForex
 
■ Online Forex
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