How to Start Forex Automated Trading?

Forex is the world’s largest financial market. As such, it presents a prime trading opportunity for people to exploit its sheer volume and volatility to make profits by trading. Forex is known for its relatively high learning ceiling, making it rather hard to master. Many beginner traders, therefore, use the services of a forex expert advisor or EA to trade more efficiently. These services, however, can prove expensive, usually charging in the form of commissions and other fees, which in addition to tax, can prove too much on the trader’s part. 

In recent years, however, we have seen the rise of automated trading and trading bots that use the power of AI to algorithmically analyze the market in order to make profitable trades and generate gains for traders. Still, to many people, automated trading is another chapter in learning how to trade forex that can cause them to be further confused. Most beginner traders do not know what they need to start automated trading, and many others are doubtful about whether these signals can be trusted or not. In this article, we will go over the requirements of starting to trade in an automated fashion and its overall reliability. 

What Is Automated Trading?

Let’s start at the base level with the most basic of questions. What is automated trading exactly? Automated trading is the process of using an AI-powered robot to automate some or the entire process of trading for the trader who uses these robots. While initially, the AI was not powerful enough to correctly deduct the signals and use them to make profitable trades, with the advent of time, they have become more and more efficient. To the point that many traders, even traders with years of experience, use them to better understand the climate of the market and trade.

Likewise, to meet this demand, many forex platform providers have moved to incorporate these bots, and some even have gone to develop their own bots. They usually sell these bots as services to traders in exchange for either percentage-based fees or monthly subscriptions. Automated trading is getting more and more efficient as the years go by, and it is expected that a huge chunk, if not the majority of the market outright, will begin to use automated trading as opposed to manual trading as time goes by. Now let’s move on to the things you need to start an automated trading operation of your own. 

What Do I Need for Automated Forex Trading?

So you have decided that automated forex trading is good enough for you and now want to move towards starting it on your own. That is great. But before going ahead, it is important to know exactly what it is that you are going to need to make it happen. 

VPS

The first thing that we recommend you to get is a virtual private server or VPS. Now, a VPS is not a must for automated trading. However, as automated trading requires you to leave your computer online and operate for hours on end, it consumes both a lot of bandwidth and hardware resources. So a VPS tailored to trading would be great to take the pressure off your own hardware and network. Cloudzy offers some of the best VPS plans out there. From naked Linux systems to ultimately customized servers for Forex traders. You can use their Bitcoin VPS package that allows you to pay for it using crypto from all around the world anonymously. They also accept other payment methods.

Forex Trading System: Metatrader 4

Next up, you need a trading system or trading platform which will act as the online premise where you will conduct the trades, as well as an online representation of classical brokerages. As far as these systems or platforms go, few are as reliable and efficient as Metatrader 4, known for short as MT4. MT4 is rather old, originally released in 2005. But it is more than capable of acting as your trading platform so long that you do not seek to automate the process of placing orders. 

Forex Trading Signals

Last but definitely not least, you need forex trading signals. These signals were previously monopolized by EAs or expert advisors. But nowadays, they are more readily available from automated trading sources. These providers will grant you an AI-powered bot that will use its advanced algorithmic capacities to provide you with buy and sell signals which you will then be able to use on your MT4 through your VPS to trade in a semi-automated fashion. These signals and the bots that provide them are what makes this whole process “automated.” So it’s important to choose them carefully. 

How to Find the Best Forex Trading Signal Providers?

But how can we find the best forex signals? As a beginner trader, or even as someone with more forex experience than average, finding a reliable automated signal provider can be difficult and confusing. One way of choosing the right forex signal provider is to look for the bots that are provided by reputable brokers who were active before these bots became mainstream. If a broker or trading platform provider was previously known for their reliability, chances are that they are still good at providing their services as they have begun to adopt automated trading and bot services. These providers usually advertise their track records on their websites, so looking for logical determinants such as costs and analysis prowess coupled with their accuracy record would go a long way in helping you choose the best forex signal providers.

Free Forex signals: Are They Worth It?

Just as it is the principal in everything else, free forex signal providers may not be worth it in comparison with paid options. The world of automated forex trading has many different options for traders. In contrast, it is possible to dig around hard and long enough to find a reliable free signal provider that may be worth it, almost all established brokers and platforms that are known as reliable forex signal providers are paid options. 

Naturally, a free AI trading bot has had fewer resources and effort dedicated to it and also has less maintenance. These are the main reasons behind them being free. A paid option, by comparison, has much more dedicated resources and has a higher operational capacity and, therefore, more maintenance costs. Hence the reason that they are paid options. All in all, while the free options may seem worth it as they do not require payment, they are not worth it in other aspects, such as the time you need to spend to find them as well as their overall capacity and ability to provide reliable forex signals. 

Conclusion

The world of automated forex trading has progressed a lot in comparison to the unreliable state that it was a few years ago. The AI is more efficient, and the bots are more accurate. However, it still remains in its infancy, and the chances of a mistaken signal are always there. So it is best to minimize these chances by ensuring that your operation is flawless in other infrastructural areas.