🎬 The Basics of Auto-Trading
There are two main types of Forex auto-trading:
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Copy-Trading
This method involves automated execution based on incoming trading signals. Many signal providers exist in the Forex market, most requiring a monthly subscription.
Tip: Before subscribing to a signal service, research its past performance (at least 2 years) and the team behind it. -
Trading Using Forex Robots
Forex Robots, also known as Expert Advisors, use mathematical algorithms to analyze technical factors and determine when to buy or sell. Traders simply adjust the settings, and the system operates automatically 24/7. Since many Forex Robots do not perform well, traders should thoroughly review an Expert Advisor’s past performance before use.
Tip: Whatever auto-trading method you choose, always test it on a demo account before trading with real money.
Forex scalping is a trading method that involves opening and closing many positions within short timeframes. Often, a position is closed just one minute after it is opened. Many Forex brokers forbid scalping, some allow it, and others permit it under certain policies. The result of scalping is usually a minor loss or a minor gain, meaning very small exposure to market risk but also limited profit potential. However, the accumulation of many small trades can lead to significant gains or losses. Scalping assumes that, by the end of the day, gains will outweigh losses and trading commissions.
Scalping requires patience.
A trader using a scalping strategy must be patient. To exploit market opportunities, you need to select the perfect timing to trade. Even Forex robots must choose the right moments to enter the market. The most successful Forex robots often signal only a few trades per week.
Still, a typical scalping strategy may involve tens or even hundreds of trades daily.
