The foreign exchange or Forex market is one of the largest markets in the world in terms of both volume and transaction amounts. Forex, of course, offers many opportunities to earn large amounts of money and do it quickly.
However, there is the same amount of risk in losing at the same rate and at the same speed. This article aims to introduce you to automated Forex trading to live in this ruthless market and increase your chances of success.
The Importance of Psychology in Forex Trading
There are many trading strategies you can adopt or develop to increase your chances of success and give you a better chance of survival. Regardless of the strategy you choose, psychology plays an important role in the success or failure of any Forex trader.
The psychological aspect of forex trading is that most traders find the hardest part to master. It is estimated that less than one in ten Forex traders survive to succeed in this market. The main factor in the failure of the vast majority of people who try Forex is the psychological aspects of trading.
New traders who follow the recommended steps to get started suffer from this mentality. They did their research on the basics of Forex trading; opened a demo account; they tested several strategies; and chose the one that brought the best income. However, despite all the preparations, when it comes to trading with their real money, this is a completely different story.
It is common for an inexperienced trader to open a trade too early, close too late or vice versa. Results? Every time you work on a demo account, the “perfect” strategy suddenly explodes and your capital begins to decline. Certainly not an explosive strategy; it is a trader’s reaction to the psychological aspects of trading valuable capital.
Automated Forex trading
One of the important aspects of Forex trading is that the process can be automated. Doing so removes all the pressure from the trader and their very human flaws! Automation trading is handed over to the Expert Advisor (EA).
So what is EA? Metatrader is an MQL-programmed program designed to work with the Forex trading platform. It is placed by linking the EA to the appropriate trading schedule and allowing you to trade according to your strategy.
The beauty of EA is that it will automatically trade your business without hesitation as a human trader can. Nine out of ten unsuccessful traders will follow your strategy without suffering from the psychological aspects of Forex trading. As long as you keep it online, it will continue to trade 24 hours a day (when markets are open).
Programming and installation of EA
You can learn MQL yourself to program EA, or hire a computer programmer to do it for you. On sites like Fiverr or Upwork, you can find very affordable and talented programmers.
When you program your EA, it must be posted online and allowed to work around the clock. Instead of running your computer constantly, consider using a Virtual Personal Server (VPS).
The VPS can be deployed anywhere globally and allows your EA to work 24 hours a day for about $ 10 a month. You can even find a broker that offers a free VPS service. Once you have your VPS, log in, install MT4, connect the EA to the appropriate trading schedule, and start automated trading.
Optimize your trade
Regardless of the effectiveness of your strategy, you will always have some losing trades. The key to success is to optimize the EA to minimize these losses. To do this, you can use MT4 commercial copying software. This program transfers Forex trades from one MT4 platform to another, and you can assign the program only to transfer successful trading operations.
You will want to install two MT4 platforms, one for your Real-Money account and the other for your Demo account. The EA is launched on a demo account and the copying program is loaded on two MT4 platforms. Assigning a copying program to transfer only successful (positive value) trades will significantly increase your successful trading ratio. All losing auctions remain in the demo account, and this is the best place for them!