How to Find Your Perfect Automated Forex System
Would you like to be able to trade forex on autopilot? Would you like to use robot to do the trading for you? To do tasks like finding profitable trades and executing them - even when you sleep?
Well, in the computer and Internet era it's relatively easy and almost every week we see a new automated forex trading system being offered to the general public. Some of them cost under $100, but there are also much more expensive programs - with prices in the $2,000 - $10,000 range. However, very often those expensive systems are sold to limited number of traders.
Why are automated forex systems in such high demand, commending such high prices?
The answer is simple; it can be found among the motivating factors for the participants in any market - not only forex, but also stock and commodity trading. I'm talking here about greed, fear, desire to live pleasant life, etc. Of course, those are rather general motivations, but they really have significant impact on every trader's mindset and his or her approach to trading.
Many authors writing on the topic of trading maintain that although fundamentals such as interests rates, CPI, employment data, etc. have significant impact on how the markets move, the psychological aspect of trading is much more important. The markets are moved by the combined belief system of each individual trader (or market participant).
That's a very important concept, because it means that each trader's desires, hopes, fears, needs, opinions, experience, education, interests, motives, etc. impact the way the trader analyses the available information and makes the trading decisions based on both belief system and the information. Those decisions are about what and when to trade, how much to expect from a trade, how much to risk, when to enter and exit and whether to buy or sell. Those decisions made by each trader are transformed into orders - that's how the markets, including forex market, move.
It's a very interesting process, isn't it? And the implications are far-reaching, because if we accept it, it means that we can't consider markets as linear systems that could be analyzed with tools that are based on linear mathematics and statistics. And as so much of the movement of the markets is determined by the psychology of trading, it is obvious that in order to explain that movement, it is necessary to use non-linear systems (models). Also, inter-disciplinary approach is needed, as only in that way it is possible to follow the markets.
With such a powerful tool as a computer, it is possible now to build much more complicated models than those created before the computers became available. Those models and the results of using them are developed by the software programmers into trading systems. There are automated forex trading systems that incorporate breakthrough discoveries from emerging progressive sciences, such as: Quantum Mechanics, Chaos Theory, Fractal Geometry and Wavelet Theory.
Forex market is best suited for such inter-disciplinary approach due to its huge trading volume - many times bigger than that of the stock market and the futures market. When those advanced sciences are used to create trading systems, it results in more accurate and thus more profitable trading signals.
So next time, when looking for an automated system for your forex trading, consider spending extra dollars to purchase a system that employs non-linear theories and tools. Analyses provided by such a system will be much more accurate than those based on out-dated linear theories, which can only tweak historical data to fit the model. And you will get a system that more closely fits your trading style.
Mary Cala is the Author and a Forex Trader. She also writes about trading currencies and about forex systems on her blog Automated Forex Systems [http://automated-forex-systems.info/blog]. Mary recommends Gomega Trader [http://automated-forex-systems.info/blog/forex-systems/gomega-trader-is-for-sale/] as the best automated forex system because it utilizes Chaos Theory, Quantum Mechanics and Fractal Geometry.
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