Electronic trading or algorithmic trading is slowly and quietly becoming the norm in forex trading for several reasons. The technology continues to become more advanced and sophisticated and it allows you to trade more effectively in a number of ways. Over 25% of all traders are already trading this way, and that figure jumps each year. Consider these 3 pros if you are at all considering electronic trading in your own campaign to trade more effectively.
Accuracy - Arguably the strongest asset and biggest reason that many traders turn to electronic trading is because of the accuracy which it brings to their campaigns. Some programs are designed to make use of complex mathematical algorithms to predict exactly where the market will go before it happens, putting you in the position to greatly monetize and profit off of this information. These algorithms are remarkably accurate in predicting the market because they both take the entire scope of the market into account, but they are also back tested and tweaked for months and years in advance using real campaigns to ensure that they are as precise as possible before being made available to traders.
Auto Trading - Many forms of electronic trading also offer constant around the clock auto trading. As the Forex market keeps long hours, extending into every week day and night and going long into the weekend hours, you've got to be able to not only know what's happening within the market during all of this time, you've got to be able to trade and react to changes instantly to ensure that you minimize your losses and maximize your profits. Auto trading accomplishes this for you as it is designed to ensure that you land on the winning sides of your trades the vast majority of the time. If you begin losing money suddenly on a once profitable trade because of a market fluctuation, at the earliest indication the in place software auto trades away the now bad investment, dramatically shielding you from loss.
Cost Effective - Many traders still rely on their brokers to watch over their accounts and trade on their behalves. They also look to their broker to have some idea of where the market will go. Not only is there a great deal of human error involved in this, it also gets expensive very quickly. Many brokers, in addition to charging a base fee, take a significant chunk of any commissions that you make. Electronic trading costs you a small one time fee, then it's yours for life. It also completely eliminates any possibility for human error because of its extensive testing, not to mention that most publishers offer constant and free updates for life to keep their program as fresh and up to date as the market itself.
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