Forex Trading Algorithms

Forex Trading Algorithms

Trade Algorithmic Trading is the use of robots or expert advisor, the mathematical algorithm can predict the behavior of currency pairs with high accuracy. Today's trading EAS are highly preferred as trading automated saves time, effort, and anxiety because it does not require deep market knowledge and even a novice can use it easily. But can trading algorithms be considered the ideal instruments of Forex training? Figure out.

Forex Trading Algorithms

The history of trading algorithms

Algorithmic trade begins in the early 2000s. Perhaps strange, but the trading robot was originally created not to get maximum profit, but rather for the Menautomasi large execution. First, investment funds and mutual funds, banks, and investors are Berlembaga who are not willing to incur additional risk when dealing with big money using this algorithm. First, they should contact a specific company that has a very experienced and qualified staff whose specialty is opening the order. But with the help of a mediator is very difficult, so when a programmer builds an automatic machine for open transactions, the complex of orders becomes much easier. While the Commission on the use of the engine is higher than the cost of intermediaries, it remains profitable.

Then the industry began to develop trading robots and special programs that are dedicated to trading directly on Forex. This is partly based on a trading robot strategy profitable.

Now there are two types of trade algorithms: mechanical and automated. Algorithmic Mechanical trading is a way of trading when the robot gives trading signals based on market analysis, the trader himself who decided to follow the signal or not. Completely exclude automated trading traders from the trading process: The EA does all-open and close positions based on the algorithms that are included in them.

Trading profit algorithms

1. Work 24 hours

Of course, the trader can not constantly trade. No matter how hard it worked, it would take at least 8 hours to sleep and rest healthy. Plus other jobs, household chores, communication with the family, there is very little time to trade. In addition, Forex offers a favorable situation to create a favorable trade, and most traders miss it, but trading robots work 24 hours a day. The robot had no other business and did not have to take a break, then even when at 3 o'clock in the morning there is a very good opportunity to open positions, the counselor will certainly use them.

2. Without Emotion

Each trader relies on emotion, in large or small levels. Fear, insecurity, or vice versa, self-confident, hype, greedy-that prevents traders from success in trading. Trade Algorithmic eliminates the human factor because the automated system operates only on the basis of the rules of strategy in its base. In general, if there is a discipline of most traders in the world, then Trade advisor-lah  "dude ".

3. Extensive opportunities

Regular traders, it is difficult to work with a wide range of indicators and currency pairs; You have to choose 1-2 asset Market and some of the most technical analysis tools are easy to use. Trading Algorithms Amat expands the generating possibilities because the robot can work with indicators and a currency pair in any quantity. The only slight difference is simply the need to make the correct settings and adjust the Algorithmic trading strategy from time to time.

4.no Need experience

Even those who do not yet have sufficient knowledge in the field of trade can begin to produce with the help of advisers. Because in the end, automated systems do all of this, not traders who do not need to learn all the nuances of trading.

Trade Algorithmic deficit

However, no matter what is smooth and as simple as that, so when trading Algorithms also have flaws.

First, the robot could not adapt. Robots work well in periods when the market situation has not changed, but so happens not suspected, the algorithm fails. In the technical rather than the fundamental factors, POPS continue to work in a similar manner, which is not effective for new market conditions. Profitability Advisor down when there are good or ugly economic data that unexpectedly when the political situation has changed in the country when there are natural disasters that affect the exchange rate and so on. In such cases, the human mind that much more is required.

Second, it is not easy to find a trading robot that is really reliable. According to statistics, of the many transactions on the Internet, only 10-15% are viable, the rest of the EA does not work or cheat scheme. Therefore, if you want to use a trading robot, then choose only those that are offered by reliable developers.

By the way, there is a general opinion that the adviser is paid better than free: Besides, there is a price, there is a way. In practice, however, this is not always the case. There are cases in which the expert Advisor is free based on a fairly simple strategy with proper configuration can yield good results. And there is also a quick expensive robot spent the deposit.

More importantly, many Forex brokers are trading advisor expert with a ban. It is not easy to find new brokers looking for trading opportunities to use your algorithm, but this can be fixed. For example, simply forex allows you to trade brokerage with style and strategy independently.

So,  "Should I use algorithms for trading? 

Of course, with all the advantages of the EA, you can not rely solely on it, the experts do not recommend trading using automatic mode continuously. The best option is to combine the trading guide and Algorithms, and also to wear a robot as a guideline and a tool for diversifying risk. There is no mathematical model can completely replace people, Pikirann, knowledge, and ability to quickly adapt to an unstable market environment.

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