Automated Forex trading programs serve different purposes and can do very different things. I believe that trading softwares serve 3 specific functions. Choosing the best software for you depends on what you wish to get out of it. Of course, some softwares do more than one thing, but it's still important to make sure that the software you choose meets your purpose exactly.
3 Types of Automated Forex trading Programs
- Analysis Software - This is basically an information display software with a twist. You can usually view a graph of the various currency pairs and also see different technical trading indicators on the graph itself. The Analysis Software doesn't make any trading decisions for you, but it simplifies your trading and can help you make better decisions and to make more money.
- Pricing Software - This kind of automatic forex software doesn't do the trading for you, but it tells you what you need to do. You need to feed market information into it or allow it to take the information from the market automatically. It then supplies you with two sets of prices: Stop Loss and Take Profit. You give these prices to your broker and, hopefully, turn a profit.
- Automatic Trading - The Automatic Trading program actually does the trading for you without you being involved. Some people don't like these softwares because they like to be in control. Others love them since they provide you with a lot of freedom and can basically trade for you in your sleep.
Whichever software you choose to get, make sure to not relinquish your forex education. It's highly important that you know the most you can about the market. The more you know the better you will work with any software you get.