Did you know the average forex trade outpaces $1.9 trillion on daily basis? But, in this extensive financial market, around 90% of the novice traders lose their funds in initial 3 months of trading. That’s because they lack the knowledge about market fluctuations and how they should respond to those fluctuations to earn maximum profit.
Traders opt for different solutions to overcome these hurdles – automated trading being one of them. Automated trading enables traders to decide their entry and exit rules that can be executed by a forex robot.
Automated Trading VS Manual Trading
It is generally observed that traders don’t possess much awareness about varying industry trends. Undoubtedly, this is the major reason why forex robots are getting so much popularity. For those willing to initiate their trading business, all that’s required is a personal computer with fast internet. You’re then required to pick the best automated forex robots that can help assure your trades are ahead of the game.
Setting up MT4 Platform
MT4 aka Metatrader 4 is one of the most acknowledged retail trading platforms available online. First, select your broker and locate a page with a downloadable MT4 link on their site.
Click on the MT4 file and download the link. You have to double click the downloaded file to initiate the MT4 platform installation.
- Create Your MT4 Account
In this step, you have to create your MT4 account. Click on the ‘real account server’ followed by ‘create a new account’ option. Fill in your personal details and create your account. Your personalized username and password will be generated by the platform. You will be further asked to provide a copy of your ID which you can get by clicking a picture of your ID from your smartphone. Upload your ID and get registered.
Once you have successfully registered yourself on the MT4 platform, it’s time now to deposit some money into your account. Once you deposit amount at your preferred broker’s site, the balance will be updated into your account.
Building a Passive Income
Who wouldn’t like to earn some easy money while having quality time with friends and family? The idea of passive income is great and fortunately attainable. All you need to do is to pick a great forex robot that suits your trading style, while also taking risks and official taxes into account.
After setting up an MT4 platform, the next thing you need to do is to plan your trading strategy. You can also establish a checklist of your limits. Pay attention to the invested funds, trading limits, timespan involved, targets and stop limits etc.
After formulating a practical strategy, you will require to have an algorithm drafted. For this, you need to have some technical know-how to configure the instructions. If this is something beyond your scope, you can also hire a computer programmer to do this step for you.
Ahead of putting your algo into practice, make sure to back test your strategy against some real-time stocks to assess if it is effectively working. This enables you to dry run your system before you risk any huge amount. Just run your installed program against previous data to get an idea how well it works. At this stage, you can identify and make any required changes.
Enjoy the Returns
Finally, you can now see passive income addition to your account. Make sure to frequently check if the program you have installed is performing well.
Benefits of Automated Trading
According to Wikipedia, over 75% of the trades on U.S. exchanges in 2014 started from automated trading systems. Below you will find some of the significant reasons why automated forex trading is inevitable in today’s fast evolving world:-
– 24/7 Trading
Automated trading enables you to trade round-the-clock. This allows you to earn from trades that aren’t even available on your time belt.
– It Saves You Lots of Time
You can still make money with automated trading even if you don’t have enough time to invest during the day. Although, you’re still required to spend time and energy in formulating a practical strategy, a forex robot eliminates significant workload.
– Excludes Emotional Biases
Automated trading is a great way to get rid of emotional or psychological biases that can interrupt your trading success.
– Consistent Trading
With automated trading, you can plan your trades and can actually follow your strategies to enjoy optimum results. You cannot alter your strategy or amend parameters based on psychological factors with fear as everything is inserted and automated. This gives rise to the consistency and you can enjoy better returns than manual trading procedures.
All in all, whether you’re a newcomer willing to check different options or a seasoned trader to outspread your existing trading strategies, automated trading is definitely a great option!