What is automated trading system? - article from ezinemark.com

Automated trading are use on forex trading, stock markets and mutual funds. These trading make up over 20% of the trading perform world wide according to wikipedia.com and its growing trend is continue to show in the many years to come.

Computerised automated trading begin as early as 1970s where stock market are converting to electronics trading from paper trading and it has growth tremendously. This makes trading effectively and manageable across a global market.
There are few strategies besides executing trades base on human inputs. The more common ones are trend following, hedging, channel trading, scalping, martingale, support and resistance trading.

Trend following – These are commonly used with averaging volume indicator like simple moving average, relative strength index and a combination of moving average using different timeframe or various average length. Common used are 9, 18 and 40 simple moving average, 20 and 80 relative strength index, etc

Hedging – This strategy is similar to hedge fund where trades are buy and sell to counter value the loss and profit. Common hedging are United State Dollar with Great Britain Pound, United State Dollar with Canadian Dollar, Swiss Franc with Australian Dollar, Euro with United States Dollar.

Channel trading – This trading watches the hourly or daily high and low and execute trades when reaches the low and high range. It will look like a bouncing ball where the price will go up and down bouncing like a ball.

Scalping strategy – This is more commonly used in Forex trading where small amount of profits or PIPS are taken from every trades and cumulative profit from many of these small trades. The risk is high but volume of trades will compensate its loss.

Martingale – This originates from mathematics arithmetic calculation where the lots quantity will increase with increasing losses. This is a sure win strategy in theory but in practical it is very difficult to achieve due to large capital that is required to maintain the margin.

Support and resistance trading – This is the fundament used in trading as it is believe trading price and traders will see support level and resistance level through out the whole duration of trading. The support and resistance can be divergence or convergence, thus makes many combination of support and resistance that can be obtained when looking at multiple timeframe.

MT4 and  Tradestation  are 2 main trading software widely used for Forex automated trading. Forex trading involved risk and you are to fully understand them before trading any of the commercial products.

source http://trading.ezinemark.com/what-is-automated-trading-system-18df4a7e104.html

Profiting with Forex introduces investors to all the advantages of the global foreign exchange market and shows them how to capitalize on it. Readers will learn why forex is the perfect supplement to stock and bond investing; why it is unrivaled in terms of protection, profit potential, and ease of use; and how it can generate profits, whether the other markets are up of down.

Written by two leading forex experts, this complete investing resource uses basic economic principles, solid technical analysis, and lots of common sense to develop an arsenal of tools and techniques that will lead to winning results in the lucrative foreign exchange marketplace. Profiting with Forex includes everything that investors need to know about:

  • The many advantages of the forex market: huge market size, ease of entry, profit potential, tax incentives, 24-hour trading, no commissions, increased leverage, and guaranteed stops
  • The basic terms of forex trading: definitions of important concepts, including "pip," "currency pair," "contract" or "lot," and more
  • Genesis and growth of the forex market: how the forex market emerged out of a changing global financial landscape and continues to changes and adapt with that same volatile landscape
  • Fundamental factors that shape the Forex market: the U.S. government, inflation, the U.S. stock market, China and other emerging markets, oil, and breaking news
  • Fundamental tools for tracking Forex market changes: interest rates, Treasury International Capital Data, Consumer Price Index, S&P 500, U.S. dollar vs. Chinese yuan, balance of trade, crude oil futures, and news media
  • Technical analysis tools and indicators for gauging market sentiment: moving averages, oscillating indicators such as, stochastics, Commodity Channel Index, Relative Strength Index, Fibonacci analysis, and others
Filled with over 150 illustrations and figures, Profiting with Forex also shows investors how to combine their newly acquired knowledge of Forex fundamentals with proven trading techniques that can generate great rewards in the market.

Profiting With Forex: The Most Effective Tools and Techniques for Trading Currencies Click here to read amazon customer reviews and rating

No comments:

Post a Comment

Top Forex Automated Trading Expert Advisor (EA)

Forex EAROI (Monthly)Profit FactorMax Draw DownS3 ScoresStar RatingAlexa.com
FAP Turbo207%31.770.32%280 points5 starsRank 31,123
GPS Forex Robot28%3.935.68%260 points4 starsRank 283,290
Forex MegaDroid19.8%NANA250 points4 starsRank 72,310
Leo Trader Pro32%2.855.84%250 points4 starsRank 213,570

Fully editable *.mq4 files that compile successfully with no errors (3MB zip file with 200+ EA codes. Including 40+ strategies from the Strategy Book. You can download the Free Strategy Book by joining my email newsletter on the right side of this website. Click "Buy Now" to make payment and instant down the Best Forex Ranking Cook Book at USD $79 (One time payment only) Click here for more info

Please inform me if unable to purchase or download (send to sngerge@gmail.com)