Automated Forex Trading

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  ACM: Your Online Forex Trading Solution 

If you are actively trading in the New York Stock Exchange, one of the most active exchanges in the world, you should be very thankful. Its total daily transactions are averaging approximately at U.S. $50 billion, making it the largest stock exchange in the United States in terms of dollar volume. There are many individuals who want to get their feet wet on the ground of this New York City-based stock exchange. 

Yet, you are luckier if you are actively involved in trading foreign currencies, or commonly known as Forex trading, which is considered to be the largest market on the world. Its average daily trading turnover is approximately U.S. $2 trillion, exceeding the combined magnitude of all other equity markets, including the New York Stock Exchange. Thus, you are luckier since you have the opportunity of getting more profits out of that $2 trillion traded everyday. 

If you are not yet involved in Forex trading, then you are currently missing the benefits of trading foreign currencies—24 hour trading time, transactions conducted in real time, extreme liquidity, and others. Thus, you should decide to get a Forex trading account and start trading right away. 

However, just like other types of investment, you must be aware of what kind of ground you are stepping into. In other words, before getting a live Forex trading account, you must be properly educated first about the background of Forex trading. You must learn how you will maximize your earning potentials as well as decrease the risk that you are into through practicing with free demo accounts. Moreover, you must have a trading system to follow and the necessary tools that will help you analyze varying conditions of the Forex market to position yourself on the profiting aspect of a certain trade. 

Once you know what you are getting into, you are now ready to get your live Forex trading account, web-based trading system and platform, and other tools that you will need in your Forex trading career. Most neophyte Forex traders obtain their trading accounts and platforms through a Forex brokerage company or agents. There are many brokerage firms out there and you need to be selective, or else you will suffer the adverse consequences. 

If you are still uncertain which Forex trading company you will trust in the early start of your Forex trading career, why don’t you try ACM Forex? They probably got what you need and at the same time the key towards the success of your Forex trading career. 

ACM Forex stands for Advanced Currency Markets Forex, a Swiss-based online Forex trading company that is founded in the city of Geneva, Switzerland in 2002. Since it was founded on that year, ACM is now one of the major Forex institutions, particularly in online day trading, with an average monthly trade volume of U.S. $70 billion. They offer their clients quick access to the speculative Forex market through online dealing platforms that allows forward and stop trading of 27 pairs of foreign currencies as well as of several precious metals. 

If you will open a live Forex trading account with ACM Forex, you will receive several benefits such as the following:

WYCIWYG or “what you click is what you get” advantage. It means that the price you clicked on at the start of the deal will be the price you are executed at, thus no single movement on the foreign currency price. 

NRFQ or “no request for quote”. You can click on any live streaming price list and there are no requisites even on fast markets. Expect that there will be no dealer intervention and timers. 

There will be no commission collected for every transaction that will be completed using the ACM Forex trading platform. All profits will go to your pockets and not to somebody else. 

You are allowed to have multiple online trading platforms for maximized trading flexibility. 

With ACM Forex, your risk is only limited to deposits or funds. Thus, you will never owe more than what you have invested in your Forex trading account. This means that there are no negative balances, whatsoever. 

You can open a live Forex trading account for as low as U.S. $5,000. 

There are 27 pairs of foreign currencies that you can trade within several clicks. 

You have access to 24-hour foreign currency trading and technical support services even on weekends. 

There are no confirmation delays—only instant and real time trade executions. 

Secured online trading platform.

Technical analysis and real time charting tools for your market evaluation tasks. 

With ACM Forex, the start of your Forex trading career is as good as a veteran trader. A good jump start and continuous success awaits you in ACM Forex.

Automated Forex Trading: Clever yet Effective Technology

Why Forex trading? 

This is probably one of the questions that you need a reasonable answer. There are hundreds of investments out there that you can prefer, but why go trading foreign currencies instead? 

Forex investment is unique in various aspects. 

  Its trading volume is relatively huge compared to other market. 

  It has extreme liquidity or the capability of either buying or selling the currency without causing                            significant movement in the market price. 

  It has the largest number and variety of traders.

  It is one of the markets that have long trading hours (24 hours each day, except during weekends. 

  Trading locations are almost everywhere, not just in the United States or major cities of Europe. 

  There are different factors that affect foreign exchange rate. 

Another whooping fact that will make you excited to go on Forex trading: it has an average turnover in traditional foreign exchange market of around $1.88 trillion daily, according to the Triennial Central Bank Survey of the BIS (Bank for International Settlements). Here are the daily averages of turnover on the Forex market for the last 17 years: 

  $500 billion (April 1989)

  $750 billion (April 1992)

  $1.18 trillion (April 1995)

  $1.48 trillion (April 1998)

  $1.16 trillion (April 2001)

  $1.88 trillion (April 2004)

From the figures alone, you will notice that the average trend of Forex turnover is increasing. It is estimated to reach as high as 2 to 3 trillion dollars within the next 8 to 10 years, if the number of traders around the world will continue to increase. As a matter of fact, everyone have the chance of getting a substantial slice of the Forex market wealth pie, especially that the Forex trading marketing is now on its automation process. 

The concept of automation becomes the new trend to the foreign exchange trading market. The Interbank spot Forex market has also considered switching to the automated method as well. 

There are several benefits that a Forex trader can derive from automated Forex trading. Here are some of such benefits and figure out why Forex trading as well as other investments (futures and commodities) prefer the automated process. 

  Through automated process, transactions can now be done in real time. Although manual systems have existed for quite some time now, it is difficult to achieve such benefit that the automated Forex system can offer to its traders. All of the trades can happen within a few milliseconds and can be a big plus for automated transactions against the manual system. In fact, there are problems that are addressed using automated Forex trading especially if the trader is losing a few times in a row that prevents him from making new trades. Such problem could be addressed using the automatic trading system. 

  With automated Forex trading, you will have a greater diversification. It means that you can trade in various markets in different time zones at a time. You can execute trades with traders from Singapore or London even it is already 12 midnight in the United States. This benefit allows you a multiple exchange model option. You can use varying trading models to evaluate short-term data. This means that you will be able to predict the trend for a shorter period of time, let us say from fifteen minutes to half an hour. 

  As previously mentioned, the Forex market is unique because of its extreme liquidity. This liquidity is increased when the market goes automated. 

  Risk management problems are solved through automated Forex trading. International checks, which are commonly used in making purchases on Forex market, are synchronized through automated technology. Since the transaction in an automated process is now on real time, there is a slim chance that the payments will be delayed, reducing the risk of non-payment by either parties. Although there are problems noted with the use of the automated system, it can be fixed through consistently-updated technologies. 

With automated Forex trading market, the prediction of $2-3 trillion average daily turnover within the nest 8 to 10 years can be changed within the next 4 to 5 years. Given the quick yet efficient trades on varying time zones, automated Forex trading will now be among the existing lucrative business around the world.

The Realm of Automated Forex Trading System 

Just how important is an automated system to the Forex trading system?

Before we answer that question, let us first determine how large Forex trading market is. From there, we will know the importance of automated systems for the Forex market. 

It is true that the Forex market is the largest market around the world not just in terms of average daily turnover and average revenue per trader. It is also the largest market in terms of participants. 

You name it, we’ve got it. Take a look at the following:

  BANKS- they are not just for saving money and lending capital to entrepreneurs, but they are one of the major players in Forex market. Banks cater both to large quantity of speculative trading and daily commercial turnover. Well-established banks can trade billions of dollars worth of foreign currencies everyday. Some of the trades are undertaken on behalf of their clients, but most are through proprietary desks. 

  COMMERCIAL COMPANIES- these commercial companies trade small quantities of foreign currencies compared to larger banks and their trades produce small and short-term impact on the market rates. However, the trade flows from transactions made by commercial companies are essential factors with regards to the long-term direction of the exchange rate of a certain currency. 

  CENTRAL BANKS- central banks play an important function in the Forex market. They have the control over the supply of different currency, inflation, and interest rate. In addition, they have also official target rates for the currencies that they are handling. They are responsible for stabilizing the Forex market through the use of foreign exchange reserves. Their intervention in the market is enough to stabilize a certain currency. 

  INVESTMENT MANAGEMENT FIRMS- these firms commonly manage huge accounts on behalf of their clients such as endowments and pension funds. They are using the Forex market to facilitate transactions, specifically in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases. 

  RETAIL FX BROKERS- they handle a fraction of the total volume of Forex market. A single retail Forex broker estimates retail volume of between 25 to 50 billion dollars each day, which is estimated to be at 2% of the total market volume. 

  SPECULATORS- these are individuals who purchase and sell foreign currencies and profit through fluctuations on its price as opposed to popular methods such as interest and dividends. They perform the important role of transferring the risk to individuals who do not wish to bear it. 

In Forex market alone, there are already six major players partaking on the $1.8 trillion worth of daily turnover. With a large number of Forex players, there is really a need in switching from manual to automated Forex trading system. 

Among the aforementioned major Forex players, the automated trading system is of great advantage to the speculators. Since they focus on the price fluctuations of various foreign currencies in order to profit, the real time data analysis will help them determine trades that will give advantage to them. 

There are several automated Forex trading systems available in the market. There are also automated Forex systems that are offered for free or as part of their trading account acquired from their Forex brokers or agents. Such complimentary system packages are typically elementary trading system. Thus, if you are looking for more features, you can avail of it through additional payments. 

There are two types of automated Forex trading system. These are discussed in the following:

  Desktop-based system- all Forex-related data are stored on your desktop’s hard drive. This system is unpopular to Forex traders because all data are susceptible to computer virus contamination and other security problems. Worse, when the computer malfunctions, all essential information might be lost and cannot be retrieved (unless you have some back-up files of your own). However, it is little expensive compared to the other types of automated trading system. 

  Web-based system- the security of your Forex account and other data are provided by your web-based provider. These are hosted on secured servers. It is also convenient in the sense that there will be no software required and it is universally compatible with your Internet browser. 

You may also try different automated trading system demos first so that you will be able to determine the automated Forex trading system that suits your personal preference and needs. 

Even if you are just a small-time Forex player, it will be to your advantage if you will use an automated Forex trading system for your future trades.

Automated Forex Trading System: Faster Execution Means Increased Trade Volumes

The concept of automated Forex trading system is mind-catching.

Before the automation of the Forex market, exchange-traded futures market was the first to switch on automation. Then, the traders on the Interbank spot FX market decided to catch up with the latest trend and moved too to the new system. 

Automated Forex trading system enables traders to execute their trade on spot Forex market automatically and anytime of the day, based on existing technical indicators and custom trading rules. There are various features included in the automated trading system, such as:

Automatic trailing stops especially if the trader is losing in a particular trade position; 

Account equity management; 

Stop and/or limit orders;

Discretionary market orders; and

Various technical analysis indicators within your discretion for enabling trend-following systems. 

Automated Forex trading systems supports most of the following indicators (the technical support will depend on the technology used as well as the available features of the system):

WMA (weighted moving average);

EMA (exponential moving average);

SMA (simple moving average);

VMA (variable moving average);

TMA (triangular moving average);

TSMA (time series moving average);

WATR (wilder’s average true range);

VHF (vertical horizontal filter);

Standard deviation;

Trailing stops;

Mass index;

Fixed limits and stops, and others. 

The success of the automation process to the Forex market is attributed to several factors, such as the following:

Its ability to perform or execute trades in real time. Because of the automation, a trader can close trades within a few milliseconds. It is impossible in manual systems, as previous trades are normally closed after several hours. In addition, there are also instances wherein a trader incurs several losses in a row that prevents him from making any fresh transactions. Thus, with automated Forex trading system, this problem could be avoided. 

Its ability to greater diversification. With automated trading system now in place, a trader can trade in various local as well as international markets within varying time zones. In other words, you can place trade or close deals with different traders from various markets around the world even at the middle of the night. 

Its ability to analyze short-term data. This feature is not available in manual trading system. Thus, traders using automated system have the bigger advantage since they can predict market trends in less than an hour. 

If you will consolidate the features as well as the benefits of automated Forex trading system, it will give you a solid conclusion: with the Forex market on automation, you will be able to place more trades on a single day, thus increasing the average volume trades daily. 

To further clarify the conclusion. Let us take the following scenario: If you are trading using the manual system, you will notice that it takes time before a trader confirms if he will accept your deal or not. He will look on the market condition first as well as the exchange rate of the currencies that you are trading with. Thus, if it takes time before a transaction will be finalized; there would be fewer trade volumes. 

Now, if you are using the automated Forex trading system, the evaluation of exchange rates and market conditions could be done within a few minutes, since Forex data are now updated in real time. Probably after less than an hour, you will be able to take your position whether you will push through the deal or not. If a Forex transaction per trader is averaging within an hour, a single trader can place as much as 8 trades within the regular trading hours (if he is following the day trading schedule) and additional trades beyond the regular trading hours. There are thousands of traders in just a single market who can place such average number of trade per day. Combining it with the number of Forex markets around the world, the figure is just huge enough. 

In addition, the technology is changing continuously, thus there is a tendency that the average number of trades per day will increase, thus a possibility of increased trade volumes on daily basis. With faster trade execution, that is a certain possibility. 

Be thankful, the Forex market is now at the helm of automation. Transactions are now faster, and earning money through Forex trading is now easier.