

Author: Eduardo Montero
Last Updated on March 30, 2022
Although the Forex is experiencing a time of glory and becoming more and more popular with individual traders, we see an increasing number of tools and software including, more recently, automatic trading software.
But how reliable is the latter? Is this type of software efficient and can it be used by everyone?
The advantages of automatic trading
The merits of automatic trading are vaunted unceasingly by the distributors, promising you gains in time, security and money, but in reality is a machine truly capable of achieving satisfactory results by trading instead of you?
It is true that the main advantage of such a tool is that you can gain time by letting the software do your trading work while you are busy with your daily tasks. After all, a machine does not need to sleep, or eat, unlike you. This software was created in response to demand by individuals, more and more of whom are investing online.
Also, the automatic trading software was developed to be capable of making more calculations than a human can do. It takes into account numerous technical factors and can, in just a few seconds, complete a precise analysis of the market without making a single error.
The software can therefore appear to be quite appealing but you will need to know how to choose the software and up to which point you trust it with your capital.
The shortcomings of automatic trading software
One important thing to know is that automatic trading software will not do all the work in your place. You will have to spend some time setting up the rules according to your strategy in order that the machine can implement them during operation. Certain software that is more complex is aimed for traders with a solid knowledge of computers and therefore not recommended for beginners. There are certain software programmes however that have been adapted for beginners with, for example, an intuitive interface but still require a certain technical knowledge of the market in order to choose the indicators to follow and decide on a firm strategy.
It is important to remember that certain, more psychological, elements of the Forex market will never be taken into account by the software. It was created to react in a logical manner to mathematical information and in that resides its main drawback. The Forex is above all a human orientated market and the trends that can be observed often result from the psychological effects of announcements. We cannot therefore expect a machine to understand or display intuition or free will. This software can therefore be used as a complement to your human skills but not to trade entirely in your place.
Our advice when using automatic trading
To really profit from automatic trading you must follow a few simple rules of which the following are the most important:
- Learn to master on your own the technical aspects of the market.
- Take the time to prepare a precise strategy.
- Take into account the psychological effects to refine your analysis and manually adapt your configuration as necessary.
- Choose a solution that is both simple yet efficient and that really saves you time.
In conclusion, the majority of Forex experts will recommend that you opt for a semi-automatic trading by using orders, for example, instead of completely relying on automatic trading software. In this way, you can still benefit from the advantages of automatic analysis as well as taking into account other, more implied factors.