In order to accurately judge the performance and efficiency of a trading strategy, I think that you should trade every setup that it provides fxcm market, not only the ones that are available when you’re at your desk. When you apply a trading system that is automated to your trading, you can accurately determine the effectiveness of your system. Trading programs are an effective way to eliminate emotions and errors from your Forex trades. This is the main reason why many discretionary Forex traders switched over to automated trading systems.
Private Forex traders are adopting automated trading strategies in greater numbers. In a recent IBFX study, 94% said they will continue or increase their automated trading in the next 12 months. Only 6% said that they will decrease the use of automated strategies. In addition, the study revealed that in September 2010, Why are Automated Trading Strategies so popular? Articles On the New York Stock Exchange 56% was computer automated or high-frequency trading. Algorithmic trading accounted for just 4% in total Forex trades in 2004. By 2007, this number had increased to 28%. Estimates suggest that at least 50% of all Forex transactions are now automated. It is clear that automated Forex trading software is gaining popularity.
Technology is the main factor behind this increase in automated trading. The technology has a big impact on Forex systems because it is driving most other fast moving industries. The shift from computerised trading to floor trading was the major step that led to the development and growth of auto trading. Immediately after this, trading firms began developing their own trading system to place orders via the new electronic exchanges. Retail traders can now use technology that was previously available only to large institutions and banks. Forex traders from around the world can now compete in the same way with the high-tech trading platforms. As traders implemented automation into their Forex day trading system, they quickly realised how many opportunities were available. As traders shared their ideas and strategies, automation became the future for all individual traders.
Automated strategies improve performance, as the auto system can follow more markets and more efficiently. Manual trading is only as good as the hours that you are able to stay focused in a single trading day. In recognition of this, many manual traders have shifted to Forex automated trading programs. Automated systems are much more efficient, as they need less human input and so cost less. The average trader may have only a few hours devoted to trading. Part-time traders can trade full-time by using an auto trading system. The only thing left for traders to do is monitor the performance. Day traders now have more time to spend on research, improving their systems and keeping up with the market’s trends than waiting for a new set-up. This helps to improve the overall performance of day traders by focusing them on important tasks and not merely mundane ones.