The foreign exchange or Forex market is one of the world’s largest markets in terms of volume and amount of transactions. Forex certainly provides plenty of opportunities to make a significant amount of money quickly.
However, there is an equal amount of risk in losing just as much and at the same rate. This article aims to introduce you to automated Forex trading to improve your chances of survival and success in this relentless market.
The importance of psychology in Forex trading
There are many trading strategies you can adopt or develop to increase your chances of success and give you a better chance of survival. Whatever strategy you choose, psychology plays a key role in the success or failure of any Forex trader.
This is the psychological aspect of Forex trading that most traders find most challenging to master. It is estimated that less than one in ten Forex traders survive to become successful in this market. The main factor in the failure of the vast majority of people who try Forex is the psychological aspects of trading.
Even those new traders who have followed the recommended steps to get started tend to suffer from mindsets. They did their research on the basics of Forex trading; they opened a demo account; tested several strategies; and chose the one that gave the best returns. However, even with all the preparations, when it comes to trading their real money, that is a completely different story.
Opening a store too early, closing too late or vice versa is common for an inexperienced trader. Results? The ‘perfect’ strategy that worked every time on the demo account suddenly implodes and your capital starts to decline. Of course, strategy is not what implodes; it is the trader’s reaction to the psychological aspects of trading their valuable capital.
Automatic Forex Trading
One of the important aspects of Forex trading is that the process can be automated. In that way, all the pressure from the trader and his too many human flaws is removed! Automation puts jobs in the hands of an expert advisor (EA).
So what is EA? It is MQL-programmed software designed to work in conjunction with the Metatrader Forex trading platform. It is implemented by linking EA to the appropriate trading chart and allowing it to trade according to your strategy.
The beauty of EA is that it will automatically run your stores, without hesitation as a human trader can. He will stick to your strategy without suffering the psychological aspects of Forex trading produced by nine failed traders out of ten. It will continue to trade 24 hours a day (while markets are open) as long as you keep it online.
EA programming and setup
You can teach MQL yourself to program your EA or hire a computer programmer to do it for you. You can find talented developers at affordable prices on sites like Fiverr or Upwork.
When you program your EA, you need to put it online and allow it to work non-stop. Instead of running your computer all the time, consider using a virtual private server (VPS).
The VPS can be located anywhere in the world and allows your EA to operate 24 hours a day for around $ 10 a month. You may even be able to find a broker that offers a free VPS service. Once you get your VPS, sign up, install MT4, connect your EA to the relevant trading card and start automated trading.
Optimizing your trading
No matter how effective your strategy is, you will always have some losing trades. The key to success is optimizing your EA to minimize these losses. To do this, you can use MT4 trading copy programs. These programs copy Forex trades from one MT4 platform to another, and you can set the program to copy only successful trades.
You want to install two MT4 platforms, one for your real money account and one for your demo account. EA runs on a demo account, and the copy program is loaded on two MT4 platforms. Setting a copy program to only copy successful stores (positive values) will significantly increase your share of successful stores. All your losing stores stay in the demo account – and this is the best place for them!