Forex Trading

Automated Forex Trading System – Should I Use My Broker Automated System?

Article by Matthew Johnson

You may think that creating automated forex trading system is a privilege of a group of free traders and programmers, but it turns out that there are others who have been developing their own automated system as well. 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 fundamental difference between both of them that will greatly affect their performance: the trading strategies behind them. In a broker automated system, you’ll be asked to decide your own trading strategies; here are a few common choices:

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. Some brokers also offer more advanced features that allow you to design complex strategies that utilize many instruments and multiple time intervals. Later, you can also back-test your strategies to see how it performs against past data.

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.Depend on the broker, you will also have option to make it automatically execute trades or ask for your permission for every trade. The first choice is similar to how a forex robot works and the second choice is widely known as “forex trading signals “.

On the other hand, you won’t get the “design your own system” option if you’re using third party automated forex trading system. It may be a forex robot or trading signal service; either way, it will comes with built-in trading system that devised by its creator. Depend on the trading system, it can be a profitable tool or mere trash.

Many traders have used software that backed up by trading system that works for a while and they’ve gain a lot from it. However, there are also a lot of traders who lose their money for using software with “trash” trading system behind it, so make your choice carefully.

So, is it worth to use a broker’s automated forex trading system? I’d say if you already a successful manual trader with trading system that works, you can try to implement your knowledge into a set of rules and have it run by its own. It may works or not; nevertheless, pouring your skills and experiences into a software is not easy as it may seems, especially if you’re do it on your own.

However, if you still struggling on finding your own profitable trading system, it is best to stick with built-in trading system that offered by third party group or company.

About the Author

Check Matthew’s recommendation on various working system (both automated and manual) at best trading system or learn to be a better trader by getting his free forex trading lessons at forex trading course.