Four Main Aspects Of Automated Forex Trading

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Four Main Aspects Of Automated Forex Trading

There are many different aspects involved in the world of algorithmic trading or automated trading as it is
known to the layman. What we need to consider are the four most suitable initial aspects to the everyday ins
and outs as well as the accepted standards of modern day living and how we can best suit the needs to the
trading world, mostly time management, risk, research and security.

1. Time management - the advantages of an automated trading system are very significant versus a
person, an EA can look for trading opportunities from when the markets open in Asia at 11pm GMT on
Sunday to 10pm GMT on Friday without taking a break or needing rest. For example, you could go
about your daily business or leave the program unattended for hours and the EA would keep trading.

2. Risk - you can also control 100% how much capital you want to risk as opposed to a trader inside a
bank only concerned about how much of a bonus they make. This is very suitable to those who want to
control their capital risk of actual money trading in their account, those of a less risk mindset can set the
account to trade at 2% of funds available per open order.

3. Research - one can back test strategies on actual forex historical data to fine tune what they feel
comfortable with trading on the live markets. This research can have a very positive affect on future
gains by learning how markets moved over years gone by under certain conditions.. Your own
understanding of how an Expert Advisor works is key to your success.

4. Security - make sure you do some research on your broker, check they are registered with a financial
regulator like the SEC or FSA, bafinetc, also see what some forums are saying about them, call them
up and have a chat to ensure they are legit.

Once these four initial aspects have been considered by the investor, then and only then is it advisable to get
started on a trading system initiative.