Profit Guide to Forex
Forex Profit Systems

Question about Automatic Forex Trading Systems?

Can you please explain Automatic Forex Trading System? Does is really work and How does it work?

Public Comments

1. If you have been online or watching TV ads , you may have heard about an automatic fx trading system. This can be a good solution for you if you are attracted to forex currency trading because of the money that can be earned but you do not know much about it. So what exactly is an automatic forex trading system and how does it function ?

There are numerous profitable systems for forex trading developed by successful traders. In fact, most traders have their own system which is a little different from everybody else’s. These days with the advances in the internet, they can have a programmer automate these systems so that they run automatically 24 hours a day. This takes advantage of the fact that the forex market runs in all of the world’s time zones, so it never shuts down from Sunday night to Friday night. With software , you can exploit this while a human trader has to eat, sleep and have a life. The computer program that does this is called an automated trading system, expert adviser or forex robot.

While some traders keep their automated systems to themselves, others are glad to share, for a price . So they sell them to other traders, especially to people who are not able to develop systems of their own. The forex market is huge , with the equivalent of almost $4 trillion traded daily, so a few people trading the same system is not going to affect things very much.
However, the market is perpetually changing and some systems are better than others at predicting this. Forex trading is risky and there are no guarantees that any system will work in the future even if it worked in the past. So you do need to be careful which robot you buy. You will even find free expert advisers, but many of these are not profitable. It’s worth spending a few dollars to get one that works.
You may be concerned about the idea of trusting your investment money to a computer program, especially if you do not understand it too well. That is a good attitude to have. You have to be careful with the settings and you should be sure to run the robot in demo mode so that you can see exactly what it does and whether you can be successful with it. Only then would you trust it with your real money account.

In most cases you have a guarantee period of one or two months where if it does not work for you, you can get a refund. This is great because it allows you to run it on a demo account at no risk. Almost all brokers offer a demo account these days, so you just need to find one whose software platform is compatible with the robot that you want to use. The manual that comes with the automatic forex trading system will usually recommend one or more compatible brokers.

2. The above article is informative but let me point out a few things to note:
1) I have yet to come across a fully automated system that actually works (the stats for the Forex market remains 98% losers and 2% winners).

I will go out as far to say that you wont find one that works online or advertised as consider the below:
If you had a really good strategy, robot or EA that turned your measly investment into millions (or as they now call it 35% success in two days/ 287.5% success in a week etc...) would you be online promoting the damn thing from a site that does not even have correct contact details and costs $50. The answer is NO! I once met a programmer that actually has a bot that worked (semi auto) and when I asked to purchase a copy or to see some results he shyly ignored me. He even was approached by some of the big firms offering mega cash but he declined. Now he says he is a farmer ;) but lives in the city and has some mullah.

To answer your question, EA's or Auto trading systems use a mathematical equation or trading strategy based upon back testing or a theory or statistics.

No, it wont work (my opinion) as you wont find the ones that could work for sale as they are too busy hiding their winning formula as not to expose it so that everyone can do it.

3. There are different ways of automatic Forex trading:

1. You can set up automated trading in a Platform like ZuluTrade. There you have the possibility to see all the stats of the Signal Traders.
Once you find Signal Providers/Traders that make consistent money you can connect your Live account to the ZuluTrade Platform and start making real trades through the auto trade service. This means that any time the Signal Providers/Traders of your trust are making trades - the same trades and the same results will be done in your Live account.
The Signal Providers/Traders are categorized from best to worst by real Live Traders (like you) and by a complete analysis done by ZuluTrade. The Signal Providers/Traders with the best signals which earn the most pips and have the lowest draw down are getting the highest rankings - so you always can be sure to choose good Signal Providers and -Traders every time.
In eToro it is working similar, but you do not follow Signal Traders (these Signal Traders are getting a percentage of the spread) - here you can follow real Live Traders trading their own money.

2. Setting up a Forex Robot or Expert Advisor on a Metatrader MT4 platform is another way of automated trading. You can find test results of the most Robots in Forex FBI or Forex Peace Army.
The problem is, that they are tested in Demo accounts in in a Demo or Test account there is no spread charged, so the results in a Live account will never be the same.

More details about automated Forex Trading and Links to Test results of Forex Robots you can find in the source.

4. Sure, Forex systems really work. All you need to do is find one that will fit all your requirements.

Automated Forex trading systems eliminate emotions like greed and fear from trading. Another great feature from software based trading is that a large number of data can be analyzed in milliseconds. Detailed analyzes from all relevant data causes in better trades and win rate.
More in full version of articles.

5. If you are referring to forex robots then forget it. Your best bet is something like Zulutrade or an auto trade signal provider.

6. Yes, some of the biggest hedge funds are using automatic trading systems.

However, what is offered for sale at retail level is usually not worth it's money.