Many forex traders will consider the use of automated forex trading systems. If you are one of these traders you have to consider whether automated forex trading systems are really the best option for you. There are many traders who look at these systems who should not actually be using them. You also have to consider the types of systems and which one would work for you.
The Different Automated Forex Trading Systems
There are two types of automated forex trading systems that you should know about. The first is the fully automated system and the second is the semi-automated system. Fully automated systems are often called forex robots and will do all the trading for you. Semi-automated systems vary from signal services to forex charting services.
To determine which one is right for you, you will have to think about what you want from the system. If you are looking for a system that you can set and leave then a fully automated system is ideal. However, if you actually want to trade yourself then you should consider a semi-automated system.
The Amount of Time You Have
When you look at automation you should consider the amount of time you have available. If you want to trade on the market yourself, but feel that you do not have enough time you should first consider part-time trading. Part-time trading strategies require as little as an hour each day. There are also other strategies that allow you to trade in small bursts throughout the day.
If you do not have time or the inclination to trade on the market then you need to look at a fully automated system. These systems require some time to set them up and occasional monitoring to check that they are still trading correctly. If you are going to use one of these systems you need to have a trading strategy that you can feed to it.
Semi-automated trading is ideal for the trader who wants to trade themselves, but has no idea when to do this. As most semi-automated systems are signal services you will be told when to trade and what to trade. With these services you need to ensure you are getting both entry and exit points.
How Much Can You Pay
Another point you have to look at is the price of the system. Fully automated systems will cost more than semi-automated systems. There are a number of semi-automated systems that are free, but you need to verify how good they are before you use them. This is something that you should do with paid services as well.
There are a number of automated system scams that take your money and you never get anything for it. There are some websites that list these fraudulent systems. You can also find out the reliability of the system through talking to other traders and reading reviews on the system. When you do this you should take the reviews and information with a pinch of salt. No system is going to always make a profit because you cannot guarantee profits on the forex market. This leads some traders to view the system as bad or fraudulent.