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[F533]Forex Auto Trading System

by Tom Stone, Tom

With the spread of the internet forex trading has become almost anyone's game. It is now easier than it has ever been for people to make money trading forex. The invention of automated forex software has allowed people all over the world to fully take advantage of the forex market and trading. Most people think that in order to use automatic forex software you need to know the ins and outs of the foreign exchange market, and you need to know all about when to buy and sell intuitively. The truth is that anyone can use online trading software and find success with it. Forex software is designed to take all the guesswork out of forex trading. Because of this, you can make even better decisions than the pros.

Though it is true you should know a little about what you are getting in to, forex trading is not something that you have to study for years to familiarize yourself with. Once you are familiar with how forex works you should then choose a brokerage firm. There are a lot of brokers on the web, each with their own minimum. You can get started with online trading for a surprisingly small amount of money.

When you sign with a broker they will provide you with online forex trading software to handle your transactions. This software allows you to log in and trade from your personal computer. This software will allow you to automate the process, meaning you can buy and sell currencies automatically when you are not even at your computer. This software is ideal for anyone who is interested in world currency, and has always wanted to try day trading, but never had quite the confidence to do it all alone. With forex software, it's almost like you have a teacher to guide you every step of the way.

Understanding how to use this software is one of the things that will be crucial to your success in currency trading. Never be afraid to approach your broker with questions if you are uncertain. The best online forex software is easy to use and makes day trading simple. The best thing about forex software for currency trading is that the risks are very low in comparison to stocks, and other types of trading.

Forex software takes care of many tasks for you. It is what allows you to withdraw or deposit money into your forex account. It also keeps you up to date on various currency values much like a stock ticker. It is like your foreign exchange market command centre right on your PC. You can set the forex software up to sell automatically when the currency reaches a reasonably high point or falls below a certain plateau. It is also totally safe and secure to use this software for your trading needs. You don't need to worry about your security with trading software. It is this perfect mix of convenience and security combined with the ability to trade day and night or anytime you wish that makes forex trading so easy for anyone to pick up.

Once you get some practice reading trends and predicting the outcomes, you will be on your way to making large amounts of money with minimal investments. It takes only moments to learn how to use forex trading software and your broker will always be happy to help you with any problems you run into. After the low risk initial investment you'll be ready to get on your way to becoming a professional foreign exchange market trader. It is easier than it has ever been to join the fast paced and exciting world of forex trading with today's automated trading software.

Creating a forex trading system that works is a task some people assign to a divine entity who magically manifests itself as a marketer selling the latest "holy grail" forex trading system. When it comes to an automatic 20 pip forex trading system, the search is likely to be long and arduous, because of the old adage "if he's doing it, why isn't everyone doing it".

In fact, I don't believe there can be an automatic 20 pip forex trading system because there is always the element of the forex market which is totally unpredictable.

It's not irregular for a forex analysts whose automatic 20 pip forex trading system is based entirely on his fundamental and technical analysis has to come back the following day and explain an unexpected reversal due to fundamental (socio-economic) news being announced lower or higher than expected resulting.

Another example of why this may happen in these times is a decision made about the war in Iraq for example that has resulted in emotional buying or selling of the USD for instance and therefore rendering the automatic 20 pip forex system another forex loser for the day at least.

So, if fundamental analysis can not be predicted, and as one author puts it "no one knows whats going to happen" in the forex market, how can an automatic 20 pip forex trading system be created?

The answer lies in the understanding of the word "automatic" If you truly want an automated automatic 20 pip forex trading system, you are going to be hard pushed. This is because there are going to have to be rules, such as not trading in the vicinity of newstime where the market reaction can be unpredicatable based on technical indicators due to the reaction of the market to the news as opposed more than predetermined technical levels which tend to get overidden particularly during major announcement such as the non-farm payroll data once per month.

However, you could call a manual trading strategy which makes a fairly consistent 20 points an automatic 20 pip trading system, but there has to be a footnote really, and that footnote must include various rules about the automatic 20 pip trading strategy as to when and how the system can and should be used exactly. The system itself is automatic in the way it roduces buy and sell signals, but, due to the nature of the forex market, it must be traded manually in reality using intuition and skill to not trade during false signals.

If you decided you were going to create the makings of an automatic 20 pip trading strategy, you cannot call it that immediately, because at first it sometimes will be good only for 10-15 pips rather than the full 20. At other times, it may give you automatic signals which tell you to get into a trade which goes for 50, 70 or even 100 pips at a time, which for an intraday forex trading system would be borderline outstanding considering the market may move in a range of only 120-150 pips on a reasonable trading day,

For an automatic 20 pips forex trading system then, one must know the online currency market fairly well. One must have education and mentoring and at least training in some indicators and strategies to understand the reading of the market technically, as well as a sound understanding of the fundamental analysis aspects of the forex market.

For myself, the automatic 20 pip forex trading system I utilise contains a good deal of classic trading rules, fibonacci retracement zones are mapped in, moving averages abound and there is use also of momentum and strength of the market indicators with as much lag reduction as I have found possible with fairly foolproof fail-saftey measures to reduce false signals to an absolute minimum.

Contrast that with a trader I spoke to today and I was flabbergasted to hear together we brainstorm from being technicals-crazy to having an automatic 20 point trading system that gives at least 2 signals per day across three currency pairs (a total 40 points daily target for the system) using only 3 lines on-chart and absolutely nothing offchart - not even a care about news (fundamentals) particularly because it 'does his head in'. So, just as the fat lady sings when its all over, so expect that anything may be possible.

A system is automatic in that it one to be confident to enter trades. A forex strategy is manual in that it is the forex trader who pulls the trigger on a trade. Its automatic though in terms of generating the entry signal based on the lining up of a few indicators on the chart and off the chart. Rules include the times of trading being particular market hours and avoidance of important announcements is key.

This article concludes that it is possible to create an automatic 20 pip forex trading system, but it takes a lot of trial and error to create an automatic 20 pip forex trading system that does not generate a whole bunch of false entry signals and actually captures trades that go the 20 pip distance.

Article Source : Automated Forex

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Both Tom Stone & Sam Beatson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Tom Stone has sinced written about articles on various topics from Computers and The Internet, Automated Forex and Computers and The Internet. An expert on Finance and Investment, including Forex Trading, Stock Trading and more. Learn more about . Tom Stone's top article generates over 2400 views. to your Favourites.

Sam Beatson has sinced written about articles on various topics from Forex Online, Brain and Trading Strategy. Sam Beatson is the founder of Beatson Enterprises Ltd and has compiled his own ''. He trains others in how to build towards the sa. Sam Beatson's top article generates over 14800 views. to your Favourites.