Not only do traders need to master all the nuances of the market, but they need to get comfortable with various trading strategies. One way to master this skill is by utilising automated trading strategies.
Here is a closer look at automated forex trading strategies and how they can help the common pitfalls beginners experience when they first start forex trading.
The algorithm containing these parameters will only execute the trade if every condition is met. In addition to market data or price activity, you can train the algorithm to wait for specific types of chart activity, such as candlestick patterns or conditions in a chart indicator.
Automated forex trading platforms, like MetaTrader 4, can automatically execute the transaction and open a position for you. You can also set the software to send you an alert when all the rules are met so that you can make trading decisions and close open positions.
Other benefits of automated trading strategies include:
If you have a trading platform like MetaTrader 4, you can take steps to test profitability, like back-testing. Back-testing involves running your algorithm using historical market data. If an algorithm is profitable from past market data, it may bring similar results in the future.
You can also set risk management parameters for your automated trading platform. For example, you can tell the program to stop trading when your account balance reaches a certain level or if you experience a certain number of losses in a row.
Takes advantage of the instant analysis and execution features of algorithmic trading. Ability to take advantage of minor price movements that occur in seconds.
Exploit the price difference between an asset on two different markets or closely related assets trading at the same price. The program waits for prices to diverge, buys the lower-priced asset, and sells higher-priced ones.
Support and resistance trading
Focuses on price action activity on support and resistance levels. The program executes the trade when the market satisfies all programmed rules.
Measures when the market moves a predefined distance away from the average price and executes a trade.
Ability to detect and define a trend and automatically open a position as early as possible. You can also add rules to help detect the end of the trend.
We have 10+ liquidity providers and fast NY4 servers, helping you execute rapid trades. And with our transparent pricing, you can add bid/ask costs into your algorithm to ensure better accuracy.
Also, with forex algorithmic trading, you do not have to spend the entire session closely monitoring your charts — your program does all the heavy lifting for you.