Forex automated trading means that traders have a lot more time these days to invest in research and developing their strategies. Until the arrival of the NASDAQ in 1971 trading wasn’t even electronic. This means that in those days traders often had to spend long hours on the phone to their brokers trying to place orders and get the latest information.
The worst part is that during a crisis, for example some kind of stock market crash, brokers would often be snowed under and completely unavailable to many of their clients. This is in sharp contrast to today’s online brokerages and Forex automated trading represents the apex of that development.
Nowadays traders receive all the relevant Forex data via a live feed linked directly to their trading platform. They can also place orders via the platform therefore eliminating the need to contact the broker directly and thus significantly streamlining the trading process.
Forex automated trading takes things a step further by eliminating the need to place individual orders at all. Instead a trader simply determines what would be the ideal order in a likely hypothetical situation. The platform is configured to place these order should the situation arise. For example you may think it would be a good idea to buy a certain quantity of gold should the Australian dollar dip below a certain value; in that case all you have to do is specify those details to your platform and the order will be placed automatically.
There are a few advantages to autotrading, one is that it saves time and as a result professionals with other important careers can still handle a career as a Forex trader as well. Another advantage is that traders can’t be caught off guard by rapid developments while they are away from their computers. Finally autotrading places the emphasis on analysis of market trends rather than digging around for hot tips, this change of focus is good for the market overall.