Automated Forex Trading System — An Introduction

What is an automated forex trading system？ How does it benefit traders？ Why do many forex traders look for the best-automated trading system？ Forex novices are often faced with these questions when they hear about automated trading systems.

Well, in order to answer this question, first you need to understand the difference between manual trading and automated forex trading.

• Manual trading: This is when you open and close trades on your own using the trading platform every time you make a trade.

• Automatic trading: This is when you employ software or algorithmic programs to analyze the market and place a trade in accordance with predefined parameters, instead of doing it manually by yourself.

Automated trading systems are suitable for trading in many other markets besides Forex, for example, stocks, commodities, cryptocurrencies, stocks, and other markets as well. Yet, it has significantly affected the forex trading environment on a variety of levels. To be more specific,

About 70% of daily transactions in the US are executed with the assistance of automated Forex trading programs.

In a nutshell, the growth of financial technology enables the transformation of what was once a transaction-intensive, back-office operation into a fully automated one. Automated trading programs analyze the market, open a trade, and streamline your trading process, allowing you to sit back and relax while the computer handles everything for you.

Why do you need an Automated Forex Trading Strategy？



As a matter of fact, the answer to this question lies within itself. The word “automated“ trading strategy can save you many sleepless nights and long hours of labour. Additionally, this system executes transactions on your behalf across a variety of currency pairs. Although you can perform all of these activities by yourself manually, choosing an automated strategy comes with an algorithmic combination that finds the best currency pairs by itself upon doing its own research.

“Automated trading allows you to walk away and watch the strategies work, eliminating some of the emotional lead we have seen in the past.”

Choosing automated forex trading also eliminates the emotional aspect of trading, allowing the trader to take a break while the system trades on their behalf. It is possible to monitor Forex markets on any day or at any time using algorithms. A dedicated program can make tens of thousands of trades in a second and perform calculations faster than a human. Furthermore, they can execute your transactions simultaneously while searching for new opportunities for you.

What are the Automated Forex Trading Strategies？

Automated algorithmic trading has completely revolutionized the trading landscape, and most traders use this practice to some extent without even realizing it. Most trading platforms offer a variety of order types that can be pre-set and triggered automatically when conditions meet, which is an automated trading method. The ability to place Stop-loss and Take-profit orders almost entirely automatically without involving any trader is another example.

Here are some examples of forex automated trading strategies that are being used in the world of forex trading.




• Statistical trading — A statistical trading strategy is an algorithmic approach used to analyze historical data to discover opportunities for trading. The identification of profitable trading opportunities can be achieved by comparing historical data with current market conditions.

• Auto-Hedging — As the name implies, this strategy implements forex hedging automatically. The idea behind hedge trading is that after one trade is placed, another one is executed to cover the first trade. A traders main goal is to reduce their exposure to risk. By balancing the exposure across different currencies, a portfolio could be less exposed to risk.

• Scalping strategy — The forex scalping strategy entails taking advantage of small price changes that may occur within a few seconds. As this type of trading involves opening a large number of trades each day, automated forex trading might be particularly appropriate, as manual trading would result in a slower execution time.

• Trend trading strategy — The trend trading strategy involves trading based on the current price trend, e.g., buying when there is an uptrend and selling when there is a downtrend.

• Momentum trading — Momentum trading is also a popular short-term trading strategy in forex. For trend traders, buying low and selling high is the general rule, while momentum traders buy high and sell higher.

• News trading — When central banks meet and major news releases occur, volatility increases significantly and prices fluctuate rapidly. Since most institutional traders use algorithms for such events, there is very little manual trading during this period.

• Direct market access — This refers to the optimal speeds and lower prices at which algorithmic traders can access and connect to multiple trading platforms. It is typically used by buy-side firms. DMA allows buy-side firms to trade without relying on market makers and broker-dealers.

Automated forex trading involves high-frequency trading, characterized by extremely fast order execution rates. With high-frequency trading, traders can take advantage of incremental changes in prices within milliseconds. Therefore, traders are able to act more quickly and precisely than they could when using manual trading methods.

Now you can learn all these types of effective trading strategies for free with the AximTrade online Forex course coupled with real-life trading examples.

Copy Trading — Automate your Forex trades the easy way!

The international forex market can be a complicated place to trade. First-time investors may find it challenging to invest funds in markets and assets theyre unfamiliar with, like Forex. Furthermore, most people have so much going on in their daily lives that they cannot keep up constantly with financial market developments. Copy trading can be an effective way to get started in both situations.

As automated trading or algorithmic trading became popular in 2005, numerous new trading methods appeared, the most prominent of which is copy trading. In 2010, many financial brokers began offering copy trading in the forex market. In 2022, copy trading is the hottest trend, and AximTrade offers beginners numerous opportunities to copy experienced traders.

Read the AximTrade review for an in-depth look at the services offered by the broker.

Why should you Copy Trade？

The forex copy trading strategy has become very popular among all types of traders, especially among beginners, because it is so simple to use. Copy trading saves forex traders the time and effort of researching and analyzing independently by simply copying the strategies of a successful trader. Simply put, copy trading allows beginners to grow their small forex accounts from the experience and knowledge they gain from successful traders in real-time.

How to Successfully Copy Trade？

Get started with AximTrade copy trading by following these steps.

• Make sure you trade with a highly reliable forex broker who offers you security and a variety of trading tools.

• Upon finding a reliable broker, open a Forex account, if you dont have one. You can choose between a Standard, Cent, or ECN account.

• You can make a deposit by using any of the payment methods that are available to you.

• Take a look at AximTrades top traders, including their historical performance data.

• Choose Money Managers you would like to follow and copy their trades based on the strategy they use and their profit rate.

• Your trades can be monitored at any time and you have full control over them.

Copy trading can also assist Forex traders in establishing investment Portfolio Diversification. This means that, instead of putting all of your capital into one position, currency pair, asset, or strategy, copy trading will allow you to use multiple trading strategies to benefit each market because you can choose from a variety of traders to copy.

Read the 6 reasons why Copy Trade is a perfect start for beginners for a deeper understanding.