Automated trading strategies also known as Forex robots have a degree of success, unfortunately the cheap counterparts that are available on the internet for a few hundred dollars have a reputation for eventual failure. Sure, it is a fact that even the best traders in the world will automate a degree of their trading but what they won't do is completely rely upon their decisions. It is this ethic that you should search for in a Forex signal provider.
With human intervention or at least 24 hour surveillance to ensure up and coming times of volatility it will give a more secure signal performance. A signal provider can work in two different ways; they can either send information for the trader to place the trades themselves through SMS or Email or they can work on a more automated basis by sending electronic signals straight into clients MT4 accounts. Both have advantages and disadvantages which we will look at now.
If your Forex signal provider uses SMS or email to provide you with entry, exit and stop loss levels, the speed that you can access your trading platform will be paramount. If you leave it to long or don't receive the message promptly you might not get the price required to make a decent profit. The signal can also send a message at the start of the day with suspected levels for set and leave trades.
The advantages to this type of signal service is the fact that you get to choose the trades that you think are more profitable. Unfortunately with the volatility of the market it is unlikely that you will gain access to your account quick enough to get the same price as the signal which could mean the difference between a winning and losing trade.
Receiving signals straight into your MT4 account has the distinct advantage that the whole system can be completely automated and give you a completely hands free investment experience. However, the disadvantage is the fact that you do not have any intervention with the signals that are sent (note: this can also be an advantage for emotional traders) so if a trade looks like it is a bad idea it may well get executed anyway.
Always make sure when you are choosing a signal provider that you can verify their results with a third party program such as MT4i or My FX Books. A signal provider that is completely transparent with their results and has great customer service can provide you with an invaluable service and can be well worth considering.
If you are considering the cheaper option of automated trading and looking at Expert Advisors or trading robots then you must do your due diligence. It is an unfortunate truth that the sales of forex robots is almost as big an industry as trading itself but seldom do they deliver the results they claim on their sales pitch.
price of a trading system is always a giveaway to it's effectiveness. You have to ask yourself if you would sell a very successful Forex trading system for a few hundred dollars, I know I would not. Be realistic with your profit assumptions and know this; the most successful Forex traders will only make around 20% - 30% a month.
With human intervention or at least 24 hour surveillance to ensure up and coming times of volatility it will give a more secure signal performance. A signal provider can work in two different ways; they can either send information for the trader to place the trades themselves through SMS or Email or they can work on a more automated basis by sending electronic signals straight into clients MT4 accounts. Both have advantages and disadvantages which we will look at now.
If your Forex signal provider uses SMS or email to provide you with entry, exit and stop loss levels, the speed that you can access your trading platform will be paramount. If you leave it to long or don't receive the message promptly you might not get the price required to make a decent profit. The signal can also send a message at the start of the day with suspected levels for set and leave trades.
The advantages to this type of signal service is the fact that you get to choose the trades that you think are more profitable. Unfortunately with the volatility of the market it is unlikely that you will gain access to your account quick enough to get the same price as the signal which could mean the difference between a winning and losing trade.
Receiving signals straight into your MT4 account has the distinct advantage that the whole system can be completely automated and give you a completely hands free investment experience. However, the disadvantage is the fact that you do not have any intervention with the signals that are sent (note: this can also be an advantage for emotional traders) so if a trade looks like it is a bad idea it may well get executed anyway.
Always make sure when you are choosing a signal provider that you can verify their results with a third party program such as MT4i or My FX Books. A signal provider that is completely transparent with their results and has great customer service can provide you with an invaluable service and can be well worth considering.
If you are considering the cheaper option of automated trading and looking at Expert Advisors or trading robots then you must do your due diligence. It is an unfortunate truth that the sales of forex robots is almost as big an industry as trading itself but seldom do they deliver the results they claim on their sales pitch.
price of a trading system is always a giveaway to it's effectiveness. You have to ask yourself if you would sell a very successful Forex trading system for a few hundred dollars, I know I would not. Be realistic with your profit assumptions and know this; the most successful Forex traders will only make around 20% - 30% a month.
About the Author:
Adam has been trading forex for over 7 years. He has been through the learning curve and come out a very successful forex trader. In the last year Adam has been distributing his best trading strategies through his forex signals business which you can try completely free for 30 days.
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