Autotrading is a distinctly modern way to trade currencies; that’s because not too long ago it was impossible! Forex only really got rolling as a widespread online industry in the last 10-15 years or so. Before that Forex was very different and so was the typical Forex trader. Aside from autotrading the biggest impact that Internet enabled trading has had on the market is to increase the number of people trading by over 100% as well as diversify the range of demographics trading Forex.
This is because the Internet makes Forex immeasurably more accessible. No longer is geography a factor and trading itself has never been simpler thanks to easy to use trading apps like Metatrader 4. Nowadays many professionals find time to manage a career as a minor trader alongside their full-time day job.
One of the reasons trading is considerably less labor intensive now is autotrading. Autotrading involves setting up an app so that it fulfills the specified order as soon as certain market conditions emerge. Sound complicated? Here’s an example: if you’re worried about the Euro you could configure your app to buy up US dollars if the Euro should fall below a certain value, this way you’re never caught at unawares and don’t have to place every order laboriously one by one.
Autotrading has contributed to other welcome trends as well. The success of automated trades rarely springs from privileged information or knee jerk responses to financial news; instead it tends to come from a deep understanding of how currencies relate to each other at a more basic level and how patterns often repeat.
This is because trading Forex is as much about predicting trader psychology as it is about studying economic headlines. As such while the world itself is never exactly the same twice, traders often repeatedly respond in the same way to the same or similar scenarios.