Sabtu, 08 Desember 2012

FOREX AUTO TRADING? - THINGS TO CONSIDER

Hi all, in this post I want to touch on the important aspects to consider when thinking of starting a Forex Automated strategy(EA). I believe even more important than choosing a good strategy is finding a broker you are "comfortable" with. I would recommend a broker that has a large amount of liquid, thus there is a lower possibility of broker bankruptcy. Also important is to find a broker that preferably has "raw spreads" these brokers work best with automated strategies. Some EA's require excellent "execution" to perform at their best, do some due diligence and you'll be on your way.

In addition to finding a good broker for you strategy, the EA you pick should tailor your trading style and risk appetite. If  you can't sleep at night when you lose 1 dollar playing the lottery, then grid trading strategies, or trading in general, probably isn't for you.

Remember the best strategies will trim your losses and let your profits run. These type of strategies are the best long term systems.

Also important is to run your EA on a VPS or virtual private server. This is in actuality a PC the is rented and  is not affected by outside power issues that may arise, or PC updates.

In conclusion, do your homework and decide exactly how you want to trade, then develop an action plan. Remember trading should actually be "boring" if you are feeling to much emotion either way, then your risk is probably too high. Trading is not supposed to be gambling.

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