How To Build A Successful Automated Trading Strategy

When it comes to forex trading, passing control to an automated forex trading system can be effective via the MetaTrader 4 platform. The use of a robot removes the emotional element of trading and allows the individual to be absent while trading the system on their behalf. Dedicated software is able to perform calculations at speeds that a human cannot and can perform tens of thousands of trades in a matter of seconds.

Automatic or algorithmic forex trading strategies refer to the different methods and methods of trading that an automated system can use to achieve the highest possible profits for the trader. In algorithmic trading, a specific trading strategy is translated into code and can be left to run without human presence.

Traders must decide which strategy will work best for them; There are many tried and tested rules based automated strategies that are readily available from brokers or third party suppliers, but some individuals prefer to create their own.
If you are not proficient in programming, the code can be generated by a third party or specific software after the required input has been sent.

Some strategies are easier to program than others; If you are trading manually with a strategy that is too personal for you - subjective rather than rule-based - it can probably be very difficult to write code. In this article, we will go through how to automate forex trading with the help of the Wikijob blog. We will also talk about the best ways to create a successful strategy.

Things to consider when deciding on a strategy:
Your Lifestyle - If you work full time, you probably won't want to risk using a strategy that involves hundreds of trades made during the work day. A certain level of monitoring is recommended when using an algorithmic system, so you may want to go instead for lower trading frequency over a longer period.
Your Finances - If you choose a high frequency strategy, for example, you will find that commissions accumulate very quickly, so you need the capital there primarily to fund your trading.

Your personality - are you able to let go of it? Algorithms don't work well if they are constantly tampered with. While it's important to keep an eye on things to make sure market conditions haven't changed so drastically that the algorithm doesn't work, you should choose a strategy that you're confident in — enough to leave it alone.
Three common types of trading strategies

There are many different trading strategies available for purchase, here are five of the most popular:
 

1. News-based
 

Inflation, war, political unrest, natural disasters, elections and banking talks, to name a few, have an impact on the world's currencies.
The news-based trading strategy involves the algorithmic system that interacts with the news wires and generates trading signals based on what is happening in real time.
Characteristically, this type of trading involves holding positions for a very short period of time - due to the fast-paced world of media where information is news one minute and forgotten the next.

2. Trend based

This is one of the most straightforward strategies and involves following market trends. A trend is where the price is moving in a certain direction (for example, up or down).
 
When the trend is up, the automated system may take a long position - buy in anticipation of an increase in the value of a stock, currency or commodity.
When there is a downtrend, the system is likely to sell, which means selling the security to buy it again later at a lower price.
Automated systems are able to compare current data with historical data to predict how likely a trend is to continue (rather than reverse).
 

3. Average price / average bounce
 

This strategy works on the premise that historical returns and asset prices will at some point return to their average levels. This strategy attempts to take advantage of dramatic changes in the price of a security, with the aim of bringing it back to its previous state.

This is a strategy that can be applied to buying and selling; Traders can profit from sudden highs and then save on abnormal dips.
It is helpful to remember that there are no guarantees in forex trading and this includes a return to a normal pattern. Unusual highs can return to a normal pattern, but equally, highs can be caused by certain events that take things off the long-term path.

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