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Automated Fx Trading

Automated Fx Trading

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Published by Victor
New models and methodologies:
taking your automated FX trading to the next level
New models and methodologies:
taking your automated FX trading to the next level

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Categories:Types, Brochures
Published by: Victor on Aug 25, 2014
Copyright:Traditional Copyright: All rights reserved

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08/26/2014

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166 | 
july 2014
 
e
-FOREX
july 2014
 
e
-FOREX | 167
Traders constantly improve their automated strategies: they make changes in their algorithms, optimize them, and add new filters; they also buy different trading strategies from third-party developers and make a strategies portfolio; sometimes they “rent” trading strategies from third-party developers and make a portfolio. The notion “rent” implies not only monthly payment for using a trading robot but also subscription to signals or membership in social trading networks. There are certainly many ways for traders to attain their trading goals. But there are three popular methods advanced and less experience traders can use to leverage an automated signal copier.
USING AN AUTOMATED SYSTEM DEVELOPED BY A THIRD PARTY
This is the easiest path towards trade automation, as it entails copying a trading system created by a third party. This is also a potentially profitable method and it is common to see many public trading systems consistently posting profitable statements. Even then, the contentious issue with these systems is the lack of certainty that the third party developer has created a program that will not constantly lose you money. This is one of the major reasons why many a trader is hesitant to use third party automated trading robots. Ideally, traders should look out for systems that come with a clear description of the strategy – how it works, whether it trades ranges or trends, whether the strategy is long term, medium or short term, what the win rate is and what risk and reward ratio the system offers. The more information the third party developer offers, the better the trader will be at choosing an appropriate trading robot. Of the many trading programs on the market, many are of superior quality, but few are inadequate with scarce benefits and features, especially for the beginning trader. Many providers of third party automated signal
New models and methodologies:
 
taking your automated FX trading to the next level
Popularity of automated trading systems has been constantly growing throughout the years. On the one hand, the reason of such popularity is that an automated trading system allows a trader to generate more trades (a robot allows to analyze more trading instruments and timeframes simultaneously) and excludes the psychological factor when making decisions. On the other hand, automated trading is popularized by brokerage companies and developers of trading platforms and trading systems.
  A  U  T  O  M  A  T  E  D  F  X  T  R  A  D  I  N  G
AUTOMATED FX TRADING
Boris Fesenko
By Boris Fesenko, BJF Trading Group, Inc.
 
168 | 
july 2014
 
e
-FOREX
copiers claim more than a 95 percent winning rate. Even then, the most viable programs provide a certified trading history to reveal the effectiveness of the trading system. However, profitable profit/loss statements do not guarantee future results with any given system.
WORKING WITH AN ADJUSTABLE TRADING STRATEGY
This method of automated trading is more difficult than just copying a third party trading system. Traders who are looking for a trading system that works efficiently but can be improved upon will typically gravitate towards this method. Sometimes, a strategy might have great entry logic but a trader might want to change stop-limit levels used in a specific strategy. At other times, a trader may also opt to change the moving average to a level that they are more at ease with. A lot of public strategies are customizable from the sub-account, allowing the trader to adjust features such as currency pairs, stop-limit levels, indicator settings, among other parameters. It is recommended to backtest third party strategies for optimal results. Well-known automated trading programs are compatible with all major currencies. The pairs that demonstrate the greatest liquidity include USD/JPY, USD/EUR, USD/ GBP and USD/CHF. Regardless of the currency pairs utilized, trading strategies differ greatly ranging from risk-averse systems that are designed to scalp a couple of points, to more risk-prone strategies. Traders can adjust the baseline strategies and keep those that work for them.Whether you use a fully third-party system or a customizable program, your needs as a trader is an important consideration. Needs such as ease of use, programmability, functionality, and speed are essential considerations. Intermediate or advanced traders may prefer a system that features market specific orders, trailing stops etc. On the other hand, beginner traders may only require an easy to use program that they can just plug in and play without much input from the operator.
ESTABLISHING YOUR OWN AUTOMATED TRADING SYSTEM
A commendable way to leverage your own winning strategy is to automate it so you can apply it around the clock on all similar trades. Obviously, creating a trading system from scratch is difficult and time-consuming but if your system is able to generate profits, then the resources spent will be offset. A good number of traders often use the services of a programmer to create an automated trading system that automatically trades for them. When creating your own automated trading system, it is recommendable to factor in the issue of remote accessibility. Traders who travel frequently should work with a program that permits easy functionality and access from any location. Web-based systems are ideally suited for roaming traders. Virtual Private Server hosting provides super fast access to the program and isolates the trading system for security purposes. Social trading networks or signals copiers can be organized within the bounds of a single Forex broker or be multi-broker. Realization of copying within the bounds of a single broker is done on a server-based or manager-based API. The advantages of such copying are high copying speed and absence of necessity to keep a trading platform launched. The only shortcoming is limitedness of a system by a single broker. Multi-broker copying can be organized on Forex expert advisors or scripts. There are several things to pay attention to when choosing a
New models and methodologies
  A  U  T  O  M  A  T  E  D  F  X  T  R  A  D  I  N  G
A good number of traders often use the services of a programmer to create an automated trading system that automatically trades for them.

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