Forex Trading

What Is Automated Forex Trading?    Automated forex trading is a system of trading foreign currencies with a computer program based on a set of analyses that help determine whether to buy or sell a currency pair at a given time. Automated forex trading uses a computer program that the trader “teaches” to make decisions based on a set of technical rules. The signal generates an actual buy or sell order that is executed. How Automated Forex Trading Works Foreign exchange (forex) trading has become incredibly popular in recent years thanks to the ubiquity of online trading platforms and the 24-hour nature of the market. While many institutional investors rely on algorithmic trading, retail traders have only recently been able to harness the power of automated forex trading systems. MetaTrader, TradeStation, and other applications have made it easy to write simple computer programs based on technical analysis rules. Advanced ...

What is a Forex Trading Strategy?    A forex trading strategy is a technique used by a forex trader to determine whether to buy or sell a currency pair at any given time. Forex trading strategies can be based on technical analysis, or fundamental, news-based events. The trader’s currency trading strategy is usually made up of trading signals that trigger buy or sell decisions. Forex trading strategies are available on the internet or may be developed by traders themselves. Basics of a Forex Trading Strategy Forex trading strategies can be either manual or automated methods for generating trading signals. Manual systems involve a trader sitting in front of a computer screen, looking for trading signals and interpreting whether to buy or sell. Automated systems involve a trader developing an algorithm that finds trading signals and executes trades on its own. The latter systems take human emotion out of the equation and may imp...