This source aims to present people to the world of automated Fx trading, and help the them get started.
It will also out tier the dos and donts of this process, with the intention of helping new user stay away from costly mistakes.
What is Automated Fx trading?
So what is Automated Fx trading?
Nicely, if you have ever traded tibia multiclient before, whether it is stocks, CFD or Forex trading, then you will have likely have to discover and use a trading system. This system could possibly be based on technical analysis on charts, then you have to sit presently there before your computer screen, every time you decided to make a swap.
Most people watch their screen for top area of the day when day trading.
Right now, think about everyone hired an "expert" to swap for you. This expert may watch the charts for you and make the swap for you base on her extensive trading experience. And she will article back to you at the end of each day of her results, and how much money she has made (or lose) for you, while you sit at the beach sipping coconut juice to the Gold Coast in Australia.
This "Expert" is a computer program, through which we call "Expert Adviser", or trading "Bot", and this bot is used exclusively (in most cases) to swap to the Forex Market.
So in a nut shell:
Automated Fx trading would be the respond of using a computer program to buy and sell currency pairs to the forex market.
The platform through which this "Expert Adviser" operates is MetaTrader, and most Forex trading Broker agents may support the Meta Trading Platform.
The good and the bad of Automated Fx trading
So if Automated Fx trading is about getting a robot to make you money available on the market while you sleep, elaborate the catch?
Nicely the catch would be the not all Expert Advisers on the market today are usually profitable over the long run, and even the 'good' ones need to be properly managed and configured to ensure it's actual jogging smoothly so it doesn't "over bet" itself as your capital increase over time.
So for the newbie who just got their hot hands on a new "kick ass" bot can potentially lose money due to the lack of testing, poor configuration and the lack of proper money management.
But the good news is that, if you take your time to real estate test your bot, give it proper settings and calibrate it monthly, and have a conservative money management approach, then you will benefit from trading bots greatly over the long run.
When carried out correctly with trading bots, then you can have PASSIVE income.
Passive income in my option, would be the "Holy Grail" of becoming rich. It means, everyone earn money while you sleep.
Getting 5-10% (or more) in your money every month is quite achievable, which compounds to about 79% to 313% per year. This is a great return, compared to your average term down payment in Australia at the time of writing is only 6% per year.
So say we are conservative, and use 79% return on investment per year, in case you invest $5000, in 3 years time, you will get $28, 676!
And all this time around, everyone did nothing, apart from check your bots every month.
What do i need to get started?
Now that you realize the potential of Forex trading bots to become your "Cash Cow", easy methods to we get started?
Nicely, you will require 3 tips:
1) Register with a broker
There are many broker agents out there, to get a list of recommended broker agents, please see below.
Please note that broker agents MAY have an effect tibia bot on your performance, some broker agents have smaller spreads than others, some broker agents can even rip everyone off, and create artificial spikes to push your bot into triggering it is stop loss, so ensure you do your research.
Ensure you develop a demo account with that broker 1st.
Once you downloaded your broker's version of Metatrader 4, just install it by following the coaching.
Once installed, open the application and have a play with the interface.
2) Get a Bot
There are many bots online that you can download, some are free and several you have to purchase. I have a recommended list of bots that i use, please see below for more info.
And before choosing your bot, ensure you read about it.
Once you get the bot, it is then a matter of copying the source file of the bot into your MT4. Most bots may guide you via the installation, so this phase is straight forward.
3) Test the bot
No matter how very good the bot claims to be, you will need to do some backwards and forward testing onto it before you can give it real money to play with.
In MetaTrader 4, there is a function call "Strategy Tester". You can use this to give food to historical data to the bot of your choice, and see how it functions. This is called "backward testing".