Best Automated Forex Trading Systems

Automated forex trading systems are not what will make a trader millions, based on multi-fold capital gains. But they still do have a place as a routine trading solution. Even the best forex trading strategy can be enhanced through some added automation on the side. This automation can deal with routine tasks, as part of a strategy which for example captures linear trends in the market. Or even small tiny trades overnight, such as in a scalping strategy. Anyone with experience studying forex charts will have observed that automated trading can capture some of the trading action, and make profits. But just to use automated trading, in any way, also requires extensive knowledge and understanding of market volatility and risk management. Knowledge which beginners do not have. So automated trading is not actually a substitute for trading experience, and neither should it be regarded as such. Ambitious beginner traders need to realize that automated trading especially that provided through cheap forex robots and Expert Advisors will not make them any money in the long run. This kind of automation is average to bad. And even if such a product is good, the new trader lacks the experience to change the parameters as needed, month after month. Automated trading can only enhance the trading of experienced traders, and those who understand volatility well. Specifically, it is parameters such as volatility, derivatives of volatility, stop loss size, and the impact of the news, which are totally ignored by new traders. Vendors on the other hand have to keep things simple, and keep these issues out of the presentation. Because consumers will not buy anything that will realistically present risk. Most of these cheap automated forex trading products use Martingale principles in one way or another, thereby risking to blow your account. The same Martingale principles in the hands of an experienced trader who pays attention to volatility and news, will not blow the trading account. So, in that regard, only experienced traders can profit from automated forex trading systems. No matter how good the product is. And if the product is really good, it will ultimately require manual adjustments from month to month, something which only experienced traders well versed in volatile markets can do.

Automated Forex Trading Systems Put to the Test

Many automated forex trading systems are put to tough trading tests, and are evaluated by wise veteran traders. The results for some of these systems are very positive. The bad news is that they can only be used by a small number of veteran traders. This is too small of a niche market for any developer to target. And yet these good systems could sell for many $1000s each, to the right client. Such a system can trade even a $5,000 forex account, relatively safely, with manual adjustments, and make good money. With perhaps as much as 10% per month profit, experienced traders would gladly buy it. But someone who has just started to learn forex trading will not be able to handle the parameters, and will end up messing up and blowing their account, and then would blame the developer for their failures. This is why vendors have to focus on training their clients, and provide their products at much higher prices. And they should also provide a secondary software tool just for assessing volatility metrics and key parameters.