What is an Automated Forex Trading Software System?

Automated forex trading software is a system for trading foreign exchange market (currencies) with a computer based program. This program is based on a set of rules, analysis that helps to determine whether to buy or sell a currency pair at that time frame in the market.  Some automated trading software System can open and close trading positions without human intervention. It uses a computer program that was programmed to take decision and actions based on  based on a set of technical rules to enter and exit the trades. The signal generates an actual buy or sell order that is executed. Forex traders and investors get exact-entry, exit-points, and risk + money management rules into automated Forex trading systems that enable computers to perform and monitor trades according to those set of rules.

Automated VS Semi-Automated Forex Trading Software Systems:

Automated Forex Trading Software Systems has the inbuilt capacity to take decision to enter and exit trades based on the parameters and set of rules it is programmed. They can enter the trade and exit from the trade themselves without human intervention.

How Is an EA (Expert Advisor) different from a Forex Trading Robot?

EA’s as the name Expert Advisors can only advise you but they don’t take any trading positions for you. They can only inform, alert and intimate you about the entry and exit points. This gives you a sense of control, the opportunity to make a decision to take the trade. Expert Advisor EA also educate you and allow you to learn more about the market movements and its trend and working. So an expert advisor EA can only notify you about the best trades to take but leave the final decision up to you.

Forex Automated Trading Systems or Robots can just not only provide you an advise but they go beyond and open and close the trades on your behalf. There are certain parameters like your preferred trading style, equity balance, lot size, Stop Loss, Limits etc that help the Trading Robots to take the trade accordingly. The trader get these guidelines form the owner of these robots about setting up the trading system based on their choice and style. The robots work continuously without human intervention based on the inputs you put and the set of rules based on which it is programmed.

Forex Trading software systems Robots ease the hard-work and facilitates the trading & analysis of Forex currency pairs, CFD’s, Stocks, Indices or any financial products. It may include single or multiple indicators, Time-Frames or Historical charts, statistics, and other technical and fundamental analytical data.

How an automated Expert Advisor / Automated Forex Trading software System Works and What do they Do ?

There is no single specific answer to this. As a Forex Trading software is based on program, algorithms, set or rules, parameters, analysis, strategies and much more and every Trading System is different. The creator of the Trading System may have used some or most of these. Some works on single strategy in one situation and multiple strategies in a different situation. But mainly these Software Systems works on the below trading styles. These are some of the main strategy styles we are discussing below but there could be others as well. Most of the EA’s or Robots have been created using MQL4/5 Language with an executable file on Meta-trader 4 (Most popular) or Meta-Trader 5 MT5 as .ex4 for MT4 and .ex5 for MT5 platforms.

 ·         Adaptable Forex Trading System – This Forex Trading System / EA / expert advisor works on different strategies and rules based on the current situation in the market. They have the ability to act differently in different market conditions. It could be scalping, grid, martingale, hedging based on the parameters, style, market situation and movements and after all the set of rules.

 ·         Price Breakout Based Trading System or EA:  The trading system or the EA carries out a constant technical analysis of market behavior to identify when big market movements are happening hence keeping the trader in a comfortable position to take advantage of that.

 ·         Hedging based Software System : This trading System /  EA opens two opposite positions (Buy and Sell simultaneously) to reduce the risk without performing a market analysis and movement. Once it open the trade (buy and sell) it further open and close trades based on market movements.

 ·         News Based Forex Software System / EA: This type of Forex Trading system / EA works based on the movement expected by monitoring financial and economic news with their prediction on reaction and hence the Trader can utilize those big market- movements in their favour.