Do Automated Forex Trading Software or Robots Work?
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Forex autotrading is a slang term for automated trading on the foreign exchange marketwherein trades are executed by a computer system based on a trading strategy implemented as a program run by the computer system. The trading strategy consist of a set of criteria, and is typically programmed, but can also be created by using a method combining the set of criteria visually without programming.
The set of criteria auto forex traders in a trading strategy for Automated Trading are mostly based on technical analysis. Forex autotrading originates at the emergence of online retail tradingsince about when internet -based companies created retail forex platforms that provide a quick way for individuals to buy and sell on the forex spot market.
Nevertheless, larger auto forex traders traders could autotrade Forex contracts at the Chicago Mercantile Exchange as early as in the s.
An automated trading environment can generate more trades per market than auto forex traders human trader can handle and can replicate its actions across multiple markets and time frames. An automated system is also unaffected by the psychological swings that human traders are prey to.
This is particularly relevant when trading with a mechanical model, which is typically developed on the assumption that all the trade entries flagged will actually be taken in real time trading. As a decentralized and relatively unregulated market, it is extremely attractive to auto forex traders number of Forex scams.
Forex autotrading, as it brings Forex trading to the masses makes even more people susceptible to frauds. Bodies such as the National Futures Association auto forex traders the U. Securities and Exchange Commission have issued warnings and rules to avoid fraudulent Forex trading behavior.