Automated FX Trading Soiftware - The Basic Rules
Automation is in the world of currency forex online trading truly the lazy mans way of trading the forex. It’s simply intelligent to let an automated system work for you. Why? This way you are able to beat your biggest conqueror, You!
But be careful, after 6 years of FX Online Trading, I’ve been probably through all the pitfalls that this industry has to offer, which was sometimes a very hard lesson to learn. But what if you don’t want to make all these experiences yourself? So what makes the difference between the winners and the loosers?
To make a long story short, there are some key factors which are absolutely crucial to your success and surviving in the sea of sharks (Brokers, Institutional Traders, Banks, Advertisers and most important: You!) at currency forex exchange trading or short FX. So here they are:
How to become a successfully currency forex online trading expert
The 5 basic rules
1. Do not put any money at risk that you could need elsewhere. Never!
2. Do not have more than 3% of your current account balance at risk. Make sure you have always a Stop/Loss in place that takes care of this. Crucial!
3. You have to begin with demo trading first. One month is an abolute minimum for this (the majority of automated FX.)
4. Only switch to real or live trading after a minimum of one month profitable trading (should be at least 20 trades, the more, the better).
5. After finding a profitable FX Trading Software, always take portions of the newly earned capital out of the account and let the rest accumulate. I would recommend to take out 50% of what you’ve gained each month.
If you start and follow these simple basic rules, you have a good foundation in place. It’s as simple as that. You can be one of those 5% of profitable traders who make a killing in fx online trading.
How to find a profitable FX Software?
This is a hard task to accomplish. Normally you have to test dozens of systems to find one that is really profitable. To make this perfectly clear. The majority of system developers will tell you that their system is able to make you very rich, but normally that is more a fantasy than a fact. To take a bull by the horns, after tweaking and testing 75 automated FX online trading systems, I was completly shocked that 98% of them are not making any money. In fact some of them would burn your capital in a firestorm.
In the majority of cases, the Metatrader 4 (MT4) platform is used for the automated FX Trading Software Systems. The programs where named Expert Advisors (EA’s). EA’s are simply some piece of Software that tell the MT4 Platform when to trade, which currency pair and how to trade it.
There are thousands of internet sites where you can get related information. But I don’t want to overwhelm you with too much info. That beeing said, I will go straight to the point of interest:
5 Rules to find an automated FX Trading System that really works
1. Any advertising for an EA that only shows you so called “back test results” isn’t worth any closer look at. The back tests are only an indication for the system creators if their development is heading in the right direction.
2. You have to look for live testing or forward testing results.
3. The Trader/Advertiser should have a live stream that you can follow and look at all trades whenever you want to.
4. The robot should be easy to use with predefined settings with an integrated update service. And mostly overlooked, because you don’t want to spend more time optimizing the settings then trading for real.
5. And finally: A Money-Back-Guarantee for the Trading Robot.
That’s it. Again, if you only follow these key rules, you are well ahead of 95% of your competition.