To understand Autotrading, we will start with a basic but clear definition of it. It could be define as a trading strategy where orders, either buy or sell are placed automatically based on an underlying program.
The buy or sell orders are sent to be executed in the market when the criteria required is met. Those orders are usually used by active traders who enter and exit positions at higher rate than the average investor.
There are two major types of Autotrading:
Signal Based Forex Autotrading: This mode is based on manually executing orders by a trading system; an advantage of this kind of trading gives traders the opportunity to follow previously successful signal with the possibility of lead to profitable future trades.
Fully Automated Trading also called Robotic Forex Trading: This kind of trading in where a computer algorithm decides on aspects such as: Quantity, timing or price and initiates the order automatically. In this trading, all the controls are managed over to the program and users can interfere by adjusting the technical parameters.
Remember the requirements to Autotrade properly, which are: Have a MT4 Platform and also keep your MT4 platform running on your computer 24/5. However, if you are not able to stay logged in to your MT4 account, you may host your account with an authorize entity.
On the other hand, as those kinds of markets are unregulated, it is offer to find Forex Scams, as a result of making people susceptible to frauds. There are bodies that regulate fraudulent Forex trading behavior, such as, National Future Association and the U.S Securities and Exchange Commission.
Autotrading is a good strategy to do trade with independence, to emphasize the relationships between different currencies using predictions and how they will perform. Autotrading considers would be sensitive in a determine situation. Remember, that you could configure your platform to buy a certain quantity of a determine currency once the value reaches a certain point.
If you want to get involved in Autotrading you can apply and follow simple steps which will lead you to a successful path in Forex.