Automated Forex Trading Software

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Automated Forex trading software has become extremely popular these days. One reason for its growing popularity is the increasing number of short-term traders. Short-term traders love the set-it-and-forget-it nature of trading using this type of software.

So what is “automated forex trading software”? Automated forex trading software is software desgin to trade the Forex market in a hands-free fashion. This simply means that no action is needed on the part of the trader. Sounds like a dream come true doesn’t it? Well, yes and no. Let’s dig a little deeper into the pros and cons of trading using this type of software.

Pros –

1 – Trades without trader intervention. Can trade for you while you are plauing golf or on vacation
2 – Can react faster than a human can react. Software can take action faster than a human can.
3 – Can minimize frivolous trading. Trading software will trade in an unemotional fashion. It will do what is told to do when it it told to do it. This can be a big advantage for traders who have challenges exercising good trading discipline.

Cons –

1 – Typically has its logic hidden. This means that the user has no idea what makes the system tick. Any trading software with hidden logic is referred to as a “black box” system. If you don’t know the underlying logic of an automated system how can you tell if it is working as it should be working?
2 – Doesn’t encourage learning Forex trading and individual analysis. Automated software can actually make you a lazy trader. The exception to this is if you do your own research to create your own automated systems.
3 – Most commercially available Forex trading systems do not work. This is about the biggest “con” you can possibly think of. The good news is that you don’t have to rely upon someone else’s expertise (or lack thereof) to trade Forex successfully.

If I were to ask new traders what they think of automated software they would all tell me that its the greatest thing since sliced bread. If I were to ask those same traders if they were making money with their software it is likely most of them would tell me no. Why is that? One reason is that automation sounds sexy. If you tell a friend that you have your own personal “Forex trading robot” trading for you it is likely your friend will be impressed. It is almost as if automated trading carries a certain level of status with it.

So is automated Forex trading software good or bad? Neither. You see what really matters is if the trading system inside the software works or not. If the system does not work then we are only automatically manufacturing losing trades. Quite obviously, that is not our objective. In most types of trading automation isn’t really a necessity. If you do happen to venture into automated trading make certain you understand how the trading system works. It is also a good idea to trade the same system manually and compare results. This way you can ensure that the automation is executing trades as it should.

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Forex Charting Software

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Hello and welcome to another Forex Examiner Forex trading tutorial.

In this Forex trading tutorial we are going to cover Forex charting software. Forex charting software is one of the most basic types of Forex trading software. It may also be referred to as Forex signal software if there are signals generated by the software when certain chart criteria are met.

Now many people who are just starting out may look for free Forex charting software. Well there is good news, I’m going to show you where you can pick that up at absolutely no cost to you. Also those of you who use a Mac computer may be interested to know that their are some charting software options available for you.

So what we are going to do now is to pop over to some Forex charting software sites.

The first we want to take a look at is the MetaTrader website. It is located at www.metaquotes.net

Here you can download either MetaTrader 4 which is been a standard in Forex charting software for some time. You can also find the newer MetaTrader 5 which also allows you to chart financial instruments other than Forex such as stocks and futures. You can download them directly from the website at the web address given above. MetaTrader is one of the most widely used of Forex charting packages.

While MetaTrader is frequently used as the “entry level’ charting package for most it can be very powerful in the hands of a skilled trader. In general, MetaTrader is a good way for you to start out and set up a demo account and start to test your trading ideas.

Ninja Trader has been around for quite some time, since 2003. There’s been nothing but praise for the way that Ninja Trader runs their business and for their charting packages. To find our more hop over to their website at www.ninjatrader.com and have a closer look at what Ninja Trader has to offer.

Tradestation is a very powerful chart, analysis, and trading platform. It can do everything from automated trading to manual trading to back testing systems and much, much more. It is one of the most powerful packages out there and is used by many experienced and professional traders. To find out more about TradeStation you can go to www.tradestation.com and take a look around the website to find out if this might be the right type of charting package for you.

XTick is interesting because of the Mac computer compatible option for trading and charting. You can go to www.xtick.com to find out more about their software.

MutiCharts has been around for quite some time and it has won numerous types of awards. You can visit the website at www.multicharts.com and take a look at what MutiCharts has to offer.

Esignal has been around for a very, very very long time. They have very in depth experience in the creation of trading tools for successful traders. You can find out more at www.esignal.com.

Now these are just some of the available packages and it’s a good idea to go through them and compare the features to the features you will need. They can vary greatly in their capabilities such as which brokers they can inerface with, etc. That is very important too because many people these days are interested in software which allows automated Forex trading with ther favorite Forex broker. In addition, some charting software allows traders go to a chart and place trades based upon entry and exit points placed upon the charts.

Trading technology is getting more sophisticated and flexible as time goes on. It makes sense, of course, to check out the various types of Forex charting software as well as check out some Forex charting software reviews. Hopefully you be able to find some that are unbiased from people who actually use the software. These are typically the traders who are be able to tell you the best software for their needs and that might mirror the software you need for your Forex trading as well.

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What Is Forex Trading Software?

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Forex trading software comes in a variety of forms and performs a wide range of functions.

Forex trading platform software – This is perhaps the most common type of Forex software and it is readily available from most all online Forex brokers. Forex trading platforms can be either web-based or can reside on the trader’s computer to interface with the Forex broker’s data and order entry system. These days platforms are quite sophisticated and have the ability to display a wide variety of Forex charts and indicators. Forex platforms allow traders to place orders to enter and exit trades with varying levels of sophistication.

Forex trading platform software not only allows traders to place their trades in real time, but also allows them to track their trades in real time. This is particularly convenient as you can see your current total account value (equity) fluctuate with the markets price movement.

Forex technical analysis software – Today’s trading platform software is quite sophisticated and can allow traders to do all types of analysis, especially those that have a variety of built-in technical indicators. There is also another class of trading software that is designed specifically for the testing and evaluation of Forex trading systems. It allows a trader to test out their trading ideas on historical market data to see if those trading ideas would have been profitable.

Although anyone can purchase this type of software and begin to use it is really best when in the hands of someone who has experience in the development of trading systems. You may have heard some experienced traders say, “yes, it is easy to develop a trading system…but it is much more difficult to develop a trading system that actually works”.

Forex trading system software – This type of software has a built-in trading system is specifically designed to give the trader Forex trading signals. These signals are essentially instructions which tell the trader exactly which actions to take and when to take those actions.

Automated Forex trading software – Automated trading software can make trading decisions using a built-in Forex trading system. It can also place trades with the trader’s Forex broker without the intervention of the trader. This type of trading is grown tremendously in popularity these days and the prospect of making hands-free profits appeals to many new traders. This type of software also has another name and that is a, “Forex expert advisor”. You may also see it referred to as a, “Forex robot”, no doubt because it performs its tasks automatically and without human intervention in a mechanical fashion.

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What You Need To Know About Forex Trading Platforms

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Forex trading platforms serve as the interface between the Forex trader and the Forex broker.  A Forex platform is also called Forex trading software and is downloaded from your Forex broker. These platforms are what make online Forex trading possible.

Different brokers have different platform options.  Fortunately for today’s Forex trader just about every broker offers a free Forex demo account.  This is your broker’s way of allowing you to see the many features of their trading platform as well as get a feel for its ease of use in day to day trading.

Here are some of the features available in many of today’s Forex trading platforms.

Up-to-the-minute equity status — You can see your account balance in real time as the market changes.  It’s not important to watch your account balance constantly, but it is nice to know that you can find out exactly what it is at any moment during the day or night.

One click order placement — Many platforms allow you to simply click on the currency pair you wish to trade as either a buy or sell to enter a position. This is especially convenient and allows you to enter or exit a trade virtually instantaneously.

Trailing stops — For those traders who use trailing stops this is an especially useful feature.  Rather than having to watch the market you are able to set trailing stops to lock in your profit as your trading position goes in your direction.

Automated Forex trading — Certain platforms have the ability to place trades for you automatically based upon the Forex trading system you have chosen.  This is the ultimate in hands-free Forex trading.  Quite naturally, when using such a system is wise to make certain that it works the way you expected by using a Forex demo account first.

Forex charts — It’s very common for today’s Forex trading platforms to have Forex charts included. Trading using charts, especially candlestick charts, has become the standard of many successful Forex traders.

We just covered a few of the numerous features available in today’s Forex trading platforms.  Before deciding on one platform feel free to take advantage of the many free Forex demo accounts available to you.  Remember that finding a trading platform that you are comfortable with is an important factor in your success as a Forex trader.

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