In the past, you could only get an automated forex trading system from a third party group or company that made it, but apparently they are not the only one that have been trying to develop an autopilot system. Recently, several online forex brokers have finished their own automated forex trading system and start to offer it as free service for their clients. So, is this free service can really help you?
First, you must know that there is a fundamental difference between both of them that will greatly affect their performance: the trading strategies behind them. If you’re going to use your broker free automated trading system, you will have to create your own trading strategies; these are some common options that your broker will offer:
1. Select one or more from a list of strategies; your selected strategies will be used to manage your account.
2. Design your own strategies based on various parameters, such as technical indicators, price levels, moving average crossovers, and market conditions. Read further about strategy at currency trading strategies . Some brokers also offer more advanced features that allow you to design complex strategies that utilize many instruments and multiple time intervals. After you finished, you can use the back-test feature to test your strategies against past market movement.
By letting you select or devise your own system, the broker doesn’t have to take responsibility if the system fails; you’ll take full responsibility of your own system .Some brokers also allow you to choose between fully automated and half-automated (keep you involved by sending you confirmation for every trade). The first choice is similar to how a forex robot works and the second choice is widely known as “trading signals service for forex ”.
On the other hand, you won’t get the “design your own system” option if you’re using a third party automated forex trading system. It may be a forex robot or trading signal service; either way, it will come with a built-in trading system devised by its creator. Depending on the trading system, it can be a profitable tool or mere trash.
Many traders have used software that is backed up by a trading system that works for a while and they’ve gained a lot from it. However, there are also a lot of traders who lose their money for using software with a “trash” trading system behind it, so make your choice carefully.
So, is it worth using a broker’s automated forex trading system? It does if you have a proven system that you’ve used in manual trading; all that you have to do is convert your trading system into a set of rules and let the software run it. It may work or not; nevertheless, pouring your skills and experiences into a software is not easy as it may seem, especially if you’re doing it on your own.
However, if you are still struggling on finding your own profitable trading system, it is best to stick with a built-in trading system that is offered by a third party group or company.