Forex autotrading is a trading strategy where buy and sell orders are placed automatically based on an underlying system or program on the foreign exchange market. The buy or sell orders are sent out to be executed in the market when a certain set of criteria is met.Autotrading systems, or programs to form buy and sell signals, are used typically by active traders who enter and exit positions more frequently than the average investor. The autotrading criteria differ greatly, however they are mostly based on technical analysis.An automated trading environment can generate more trades per market than a human trader can handle and can replicate its actions across multiple markets and timeframes. An automated system is also unaffected by the psychological swings that human traders are prey to. This is particularly relevant when trading with a mechanical model, which is typically developed on the assumption that all the trade entries flagged will actually be taken in real time trading.Signal Provider based models offer traders the opportunity to follow previously successful signal providers or strategies with the hope that the advice they offer will continue to be accurate and lead to profitable future trades. Traders do not need to have expert knowledge or ability to define their own strategies and instead can select a system based on its performance to date, making Forex trading accessible to a large number of people.
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