Auto Trading the Forex Market
Most often when trading foreign exchange the trading is done by humans, but some people like to develop automated systems of trading forex. The most common and best reason for this is that a trading system can be developed that removes the "human emotion" from trading and improves the results.
At least that is the idea.
In reality an automated trading system can be fraught with risk. Since it is trading automatically, little glitches in the program can cause financial loss. The broker usually does not care if you are trading forex automatically or "manually". If you lose the trade you lose.
Therefore careful testing, both forward and backwards in necessary for any automated trading system. In some cases results can be better than humans, especially where an inexperienced human trader is pitted against a sophisticated automatic or "expert advisor"
Trading software such as Metatrader allow automated trading to occur. But not all brokers will allow the use of metatrader. Metatrader is actually a free program. The forex broker pays the cost. If the broker uses Metatrader then you can do automated forex trading with that broker.
Some Metatrader enabled brokers include: Alpari, InterbankFx and North. You should research and read forex broker reviews though - before you open accounts with them. Some have particular rules that makes automated trading difficult.
What I have covered here is the start and some pointers to places where you can begin on your journey to understanding automated trading. You will not necessarily find better information in an ebook but like me are more likely to gain the required understanding by reading from many sources. Forex forums are a good place to pick up information on this subject.
Copyright 2007 Graeme Sprigge is the web master of Forex Broker Reviews the first dynamic and community driven forex broker review site. He is a part-time forex trader and investor and has been active in investing for many years. This article may be reprinted provided this copyright and notice remains intact - all rights reserved.
Source: www.isnare.com
