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Auto Forex Trading

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Automated forex trading is essentially trading with the help of special programs whose aim is to automate most of the process and replace the trader at his workplace.

In other words, all transactions are opened and closed by automated programs. Among their users, these programs are often referred to as robots or advisers.

Trading robots make currency transactions according to the trading system and algorithms specified by the developer.

Based on the preprogrammed trading system settings, the robots wait for the trading signals, after which they automatically set the lot, the opening price, take profit and stop loss levels.

In order to decide between doing all the trading yourself or to automate the process and trust your capital with a program, here are some of the pros and cons of automated trading that you should be aware of.


Automated FX Trading – Pros


  • Full automation and the absence of the human factor. Obviously, this is the biggest advantage of this method of trading. Trading robots aren’t familiar with emotions, and they have no fears. They do not hesitate, and they are not afraid to make calculated guesses. Robots can analyze the market themselves. They simply wait for trading signals and make trades according to a given algorithm. They are not subject to subjective assessments and psychological influence;
  • The speed of transactions. Robots open and close transactions immediately at strictly specified prices. Therefore, deals are opened and closed according to the rules that you impose on them, hence, the price practically never has time to rebound far from these values;
  • Round-the-clock trading. Trading robots do not get tired, as is typical of humans. This allows your trading account to continue activity around the clock, even at night, which cannot be said about manual trading. At night, despite its relative passivity, the market still gives out some good trading signals;
  • Flexibility and control. Any automated trading system can be configured and changed, its parameters partially or completely adjusted.

Automated FX Trading – Cons


  • Generally expensive. Developing a legitimate trading robot that will make the right tangible deals is very hard and complicated work. Therefore, profitable automated trading systems are very expensive. Prices range anywhere from $10 up to $2000 and even higher. The price of a trading robot, as you might have guessed, tends to speak of its reliability and profitability, but not always;
  • Malfunctions. Trading robots, like any computer program, can stray away from the correct algorithm of work. Due to some kind of failures in the settings or parameters of the robot, trading can go downhill pretty fast, and the deposit can be completely burned through;
  • The computer must be constantly online. In order for the robot to open trades around the clock, 24/5, the trading terminal must be constantly open;
  • Robots cannot react appropriately to unforeseen events. Price movements are often caused by unforeseen circumstances. Sharp permutations, political events, economic changes, and other unpredictable events strongly influence the movement of currency rates. These kinds of factors are relatively rare, but they do have noticeable effects on the market. These changes cannot be recognized and taken into account by trading robots as trading signals, since they work according to specific trading system settings. In these cases, robots often open late and unprofitable transactions, or, on the contrary, they completely miss out on potentially lucrative deals;
  • Trading systems are based on technical analysis and do not take other factors into account. Trading robots simply catch signals to open trades according to the parameters specified by the developer. They are based on technical analysis tools such as: oscillators, indicators, quotes history and price movements. What this means is that automated trading does not take into account the impact of fundamental analysis, economic events and news, which play a huge role in how your transaction will go.

How to Auto Trade Forex?


Before starting the search for a suitable trading robot, you need to decide on the deposit that you will be allocating for your investment capital. In addition, it is necessary to take into account two points that will help stop additional and unnecessary loss of money:

  • The trading robot must support the “Stop Loss” function. It allows you to block any transactions that may cause a loss of the deposit. When choosing an advisor, you need to be extremely careful, since many programs lack this critical function;
  • Do not rely on advertising that much. Before using an adviser with actual funds, it is always better to test it on a demo account. In doing so, you will be able to test its effectiveness and pinpoint some of its weaknesses.

In addition to the tips mentioned above, here are a few more moments that every auto forex trader must pay serious attention to:


  • Understanding the principles of entry and exit from the market with the help of a robot. Test an automated adviser to its full extent before deciding to allow it to trade with your own capital. If there is a noticeable lack of key functions such as “Stop Loss”, then it is best you continue your search;
  • Test the reliability of the program, as well as understand which algorithm is used in the program. How is it different and better from others;
  • Check for yourself whether the interface of the adviser is convenient and comprehensible;
  • Check for the presence or absence of problems that may arise when installing an automated advisor on your trading platform. If the robot is very slow, you should try reinstalling it. In addition, you should consider the possibility of using virtual private servers (VPS);
  • Double check and make sure that the adviser’s developers maintain technical support services. Technical service should be distinguished by efficiency and high level of professionalism. The best advisers are constantly updated and have a support team for accepting feedback.

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Finally, it is advisable to seek the help of a professional trader that has existing experience with automated advisers.

You can find countless discussions on the effectiveness of a particular auto forex robot on thematic forums.

Approaching this subject with the level of responsibility that it deserves will allow you to choose the most efficient trading robot suitable for you, and, in time, establish a stable source of income that requires minimal effort from your side.

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