Sabtu, 16 September 2017
Business :
Auto Forex Trader
DEFINITION of 'Auto Fx Trader'
Auto Forex Trader is a method of trading international currencies with a computer program that is established on a set of analyses that help determine whether or buy or sell a currency couple at a given time. Automated forex trading uses a computer program that the trader "teaches" to make decisions based on a couple of technical rules. The signal generates an genuine buy or sell order that is executed.
DETERIORATING 'Auto Forex Trader'
Forex trading (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 traders rely on algorithmic trading, retail traders have only recently been able to harness the potency of Auto Forex Trader systems.
MetaTrader, TradeStation, and other applications make it easy to write simple computer programs based on tech analysis rules. Advanced dealers may also create their own trading systems in programming languages like Python or R.
For illustration, a trader may write a program that places a buy order for a currency pair when the 50-day moving average crosses over a 200-day moving average and places a sell order when the pair moves 60 pips higher. Many fx brokers let traders automatically run these programs to execute trades.
Advantages and disadvantages of Auto Forex Trader
There are positives and negatives to using Auto Forex Trader systems rather than positioning investments by hand.
The biggest good thing about fx trading systems is that they take the emotion out of the process, which is likely to reduce the behavioral finance biases that negatively impact financial commitment making. Traders can also backtest trading system to see how they perform depending on past data, which can help them fine-tune their strategies before using real capital. And, of course, traders no longer need to be there to generate profits from these systems.
The disadvantage is that successful Auto Forex Trader systems can be difficult to develop. While backtesting may show positive results, past performance is never a guarantee of future results and many trading systems are over improved - or curve fit - for past results. Traders should exercise extreme caution when buying "off the shelf" Auto Forex Trader systems simply because may be curve fit to the past and offer no or partial benefits for future years.
Using Auto Forex Trader Systems
Auto Forex Trader systems are a great way to get started out in the wonderful world of quantitative finance. Mt4 and other applications are free to work with on demo accounts, which means they can be a valuable way to rehearse building systems, backtesting them, and applying the concepts in practice by paper trading.
The best destination to start is programmatically implementing techniques that you are already using in live trading. For example, you may want for breakouts from a preceding reaction high, which is a concept that could be showed by scripting in 'languages' like MQL. Traders may also use other websites and scripting languages like TradeStation's EasyLanguage or coding languages like Python and R.
It's important to practice trading before assigning real capital also to keep an eye on automatic systems to ensure that they're performing correctly. [SEE: Tips on how to Practice Time Trading. ] In addition, traders should be certain to build in money management and risk patience ways of limit downside in the event that sudden price action occurs - such as whipsaws.