The Advantages of Automated Trading Systems

1 November 2011

Automated trading primarily helps to eliminate emotionally driven losses often seen in manually traded systems which are trying to operate in such a volatile and fast moving environment. Manual systems sometimes leave traders nervous about whether or not their trading strategies are solid, usually causes erratic trading habits to develop. Erratic trading is essentially overtrading which causes traders to abandon trading plans that can have catastrophic effects on their bottom-line.

For many Forex traders another problem is the management of risk and this is also reduced with the use of automated trading platforms. Those who have experienced trading using manual systems know how annoying it can be when losses are caused by nothing more than a time delay also known as price slippage. While not fully protection proof, automated systems can help improve trade execution but ultimately the speed of the broker’s trading platform plays a bigger role.

Automated Forex trading allows trades to take place anywhere in the world and also permits you to operate in a wide range of different currency markets simultaneously without any regard for the time zones of the markets. If you are in the US at one o’clock in the morning then automated trading allows you to conduct business with traders on the other side of the world in several different countries at the same time without delay.

Automated trading has also extended its reach to online trading platforms. Over the past few years, there has been a dramatic increase in online trading programs as computers; high speed internet and the availability of online trading programs make it easier for Forex traders to automate their trend analysis. Automated programs can look at past trends, and then crunch that information into working, usable databases which can then be applied to current, real time market data to identify similarities to further investigate. The tips generated by algorithmically based forex programs work around the clock looking for profitable high probability trading opportunities in the market so that trades can be made accordingly.

Technology has advanced considerably in recent years and will continue to do so for many years to come. Most importantly, access to that technology has been made more accessible and affordable from our own homes, and even when we are away from home, allowing for more flexible in managing investments. For those operating in the Forex trading world automated trading is undoubtedly a welcome addition to an already great investment opportunity.


About the Author

This article was provided by Franklin Global Capital LLC, NFA member (#0391263), a Spot Forex and Forex Investment and management firm. Franklin Global Capital provides managed forex account and automated trading platforms that help identify attractive investment opportunities in any economic environment. For more information please visit their website for more information.

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