With the continuous development in the field of information technology, the span of skills that artificial intelligence exhibit keeps on expanding wider and wider. Now, with the mode on trading foreign currency through the Internet becoming the main means of trading, artificial intelligence has now penetrated this field with automated forex trading. Forex autotrading, as some may also call it, is a trading strategy where buying or selling of a pair of currencies is automated by using a program whose functions are designed based on certain trading strategies. Usually, a forex trading program would do its buying or selling when certain preset criteria are met by the conditions of the market. This means of trading in the foreign exchange market is usually used by traders who have a significantly higher rate of trading and volume compared to the average trader.
The trading strategy used by one automated forex trading program will vary from that of another. The variety of strategies being used can vary as much as the variations between trading styles of real people have. The variation is usually caused by the programmer who designed the software. Depending on his preference, research, or beliefs, the programmer may include or omit certain indicators in the market, all of which could guide the program in deciding whether to buy or sell a pair of currencies at a certain point. Despite the wide variability, the inclination of the programs is always toward technical analysis, which is the use of mathematical indicators in deciding the move of a certain trader in the market. So, if you are more inclined to side with the fundamental analysis techniques, using forex autotrading may not be the option for you. This is because usually, once you have given the software control over your trading accounts, chances are likely that the program might have already made its move before you have decided to interfere.
If you still want to have control over you account, it is recommended that you find a forex autotrading program that will need your approval first before making its move. Although the disadvantage of this is that you may lag behind the trend if you missed out on approving the move at a critical point in the trend. All in all, the greatest advantage that automated forex trading programs can do for you is that it can do both the trading and analysis for you while you sleep on your money.