What are the auto trading platforms?
The Autotrading platforms are applications designed to execute automated trading systems which serve to trade in the market based on pre-programmed trading strategies, without requiring human intervention. These automated systems can be active and trade 24 hours a day without having to be controlled by the investor. In this case these systems can open and close positions in the market following a defined trading strategy that is programmed by the creator of the system.
Most of the strategies used to design the auto trading systems are based on the use technical analysis indicators which are employed to determine the rules to open and close positions in the market. In this way, the programmer can tell the system under which market conditions it can open a long or short position and under what conditions it must close an open position to take profits and cut losses quickly.
In general the main advantages of Forex autotrading are:
- The Automated systems through the autotrading platforms can trade 24 hours a day so they can take advantage of multiple opportunities that the Forex market offers throughout the day.
- It eliminates the emotional factor of trading. Because the strategies are executed automatically there is no possibility that the negative emotions of the trader may affect the performance of these. In many cases, traders who trade on their own fail because they are dominated by emotions such as fear or greed that ruined their chances of success, even with the best strategies.
- It allows that investors with little or no experience in trading, invest in the market and take advantage of its great potential to generate revenue. Thanks to the fact that these trading systems work on their own, the investor must deal only with selecting the system(s) that he considers most appropriate (for this a beginner traders should ask for advice), let these systems trade using the funds deposited into the investor´s account and constantly monitor the performance of the selected systems, discarding those that are not as profitable.
- The Forex autotrading frees the trader from the workload of analyzing the market for long hours and to open, monitor and close positions which take a lot of time too. With the auto trading platforms, the trader does not need to be in front of a computer all day to make money in the market.
- Even the more experienced traders can exploit the potential of Forex autotrading by using automated systems that can trade in their place when they cannot trade in the market for any reason (to work, study, for family time, sleep, and so on).
- The trader can make use of multiple trading systems based on different types of strategies. This allows the trader to create his/her own portfolio of automated systems that trade in markets with different conditions.
The execution of autotrading systems can be made through some regular trading platforms such as Metatrader 4 or through autotrading platforms of which we will discuss below.
How function the autotrading platforms?
In most cases, autotrading platforms are web-based online applications, which no download required. These applications work based on the website of a broker or other company that offers the autotrading service (the service of these companies include tens or even hundreds of trading systems from which the customer can select the ones he prefer), which supports them (it provides the web hosting for the application) and connects directly to the customer's trading account in order to trade in the market using funds deposited in that account.
List of autotrading platforms
Below is a list with the main Forex autotrading platforms and the Forex Brokers with which these applications operate. This list includes a link that leads to a complete review of each platform, so that visitors can know the main characteristics of each of them.
|Autotrading Platform||Broker||Complete review|
|Mirror Trader of AvaTrade||AvaTrade||Review|
|FXOpen Autotrading System Selector||FXOpen||Review|
|Mirror Trader of Forexclub||-Forexclub International||Review|