An automated trading system is an automated software program which is designed to conduct trade in the forex market on behalf of the trader who has installed it. In such a situation, it is not always possible for a single individual to monitor the market single-handedly and therefore, the need was felt for a program which would solve this problem faced by individual traders.
Since the advancements in computer technology have spurred the growth of the forex market, assistance in this matter was sought from the field of computers itself and the result was the development of the automated trading system. Since this system entails the upload of the software into one’s computer, it is preferred by forex traders all over the globe due to the benefits reaped by investing a minimum amount. Being a global phenomenon, the forex market is open for the entire twenty-four hours as the closing bell in the oriental countries coincides with the opening bell in the western countries and vice versa. In such a situation, a trader who is dependent on the forex market for a living would have to be on a constant watch so as not to miss a profit-making opportunity which is not physically possible for any individual. Therefore, the ideal alternative would be to have a program which could act as a substitute and could be relied upon to follow the instructions provided and this alternative evolved in form of the automated trading system.
An automated trading system entails that the forex trader should fill in certain specific details pertaining to the transaction like the personal account number, the desired nature of trade and the verification of funds and the instructions are explicitly carried out. This not only results in the accuracy of the transaction but also represents the practical aspect of trading as it eliminates the crucial human element.
An automated trading system is available in a number of formats and it depends on the personal choice as well as the requirements of the user as to which should be selected and installed in the computer. A word of caution in this regard is that since the automated trading system functions like a robot, it cannot possibly react to sudden fluctuations which may occur due to a change in the political or the economic conditions. Therefore, the onus of keeping abreast of the latest news and instructing the system accordingly lies with the forex trader himself.