Forex Automated Trading Signals
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Those involved in Forex trading know that the foreign exchange market provides a lot of opportunities. If you have the right intentions and are ready to monitor the market 24/7 when searching for trades you would like to perform, you will most likely be successful in FX trading. But this may be too time consuming for some.
In the world of trading, time is too precious to waste without gaining a decent profit. It's important that you ask yourself this question - do you really want to succeed in Forex trading? It requires time, preparation, and commitment. That being said, there are tools available which can help make the process a bit easier. Automated trading systems are popular with those who want to save time - they will check all of your options every second, and make decisions for you accordingly. However, only a few of them can be regarded as professional.
The automated trading system can help you and make your work much easier, but you cannot solely rely on it being the only factor in your success. You should strive for something more, by monitoring risks strictly, as well as performing money management diversification. This leads us to the use of automated Forex signals, which is the main focus of this article.
Technically, this signal is a suggestion for entering a certain trade on a currency pair, most often at a particular price and time. It can be generated both by an automated Forex robot, and a human analyst, further supplied to you as a subscriber of the FX signal service. There are still a number of services that supply signals of very debatable quality, so you should be careful and attentive when you choose your signal provider. We have prepared this article for you in order to help you choose the best automated Forex signals.
To start, we're going to introduce MetaTrader 4 Forex trading signals and explain how to apply them in your trades. MT4 trading signals permit you to automatically follow or copy the trades of FX signal providers directly from MetaTrader 4. In addition, signal providers are capable of sharing their signals within the global community of millions of users. They can also earn a fee, if anyone decides to follow them.
The signals are very easy to follow and are easily accessible from your MT4 account under the 'signals' tab. To enable them, you simply have to sign up for an MQL5 community username, and then enter it into the settings within your FX trading platform. The benefits of social trading auto Forex signals for Forex traders include:
- That you do not need to spend time building your own trading strategy. Developing your own FX trading strategy can be a long process, so you may choose to follow a trader with an equal risk profile to your own.
- That you save a huge amount of time placing trades and monitoring different markets.
- That you diversify your risk at the most objective level. You may select multiple FX strategy providers so that your outcome does not rely on the performance of only one strategy.
- Even more opportunities. If you have a current strategy or an EA (Expert Advisor), you can quickly add supplementary strategies to your trading mix by adding Forex automated signals.
- Save on fees. Social trading is a low-cost alternative to well-known traditional money management.
- Low barriers to entry. You are not obliged to possess a minimum account balance to begin or proceed in social trading. As a matter of fact, anybody with access to MT4 is able to do it.
- No paperwork. There is no complicated and boring paperwork to go through in order to get started with copying signals.
- Maintain control of your account. The account you use for social trading is in your name, so you do not have to give power of attorney to anyone.
- You are well protected. When you decide to follow a trader, you choose how much to distribute to their strategy and can place a stop-loss on your MT4 account in case they do not perform in the way you expect.
- You can even share your successful strategies.
What are the characteristics of a good MetaTrader 4 provider of auto Forex trading signals? The signal provider's profile plays a significant role, and may help to distinguish whether he or she is a professional or not. The characteristics you will want to look out for are:
- They are trading a real account.
- The more trades they have performed so far, the better. Reputation in this case is crucial.
- They should have a limited drawdown. Better to look for providers that have 30% or less.
- Steady growth. If it is too fast, the provider might be trading in a high-risk manner.
- Statistically speaking, paid signals are more reliable over the long run, rather than free ones.
As you can see, the MT4 service has a lot of benefits. Importantly, MT4 Forex auto trading signals do not require you to change brokers, because the signals are directly in your current MT4 account. Moreover, you will have a similar spread as you do with a normal account - other signal providers will charge you by widening the spread.
This can not only cost you considerably more per trade, but you will most likely have less winning trades over a long period of time. Finally, you have access to the MT4 community, as there are millions of MT4 users throughout the world. You have the opportunity to tap into the huge existing MT4 base of traders and expert advisors.
ZuluTrade is a popular social trading network and automated Forex trading platform. It is open and accessible to all internet users, and offers a free functioning demo.This openness means that everyone is able to become a trader or a 'signal provider' of automated Forex trading signals on this network. The amount of signal providers is massive - more than 10,000. However, you can search according to your own preferences.
Users also have access to a table of performance in which ZuluTrade rank all signal providers according to their rate of success. Ranking can be a good place to start, but be wary. We have seen at least more than one of these signal providers make an appearance in the top five within a certain month, only to consequently make a large loss and drop out of the top ZuluTrade ranking table the next month.
For every signal provider, you can view a range of performance indicators and graphs to help you evaluate them. ZuluTrade is totally transparent concerning the access to the history and information about every single trade that users have performed in the past. You can download all historical trades within Microsoft Excel to make your own analysis. Looking for trusted and consistent signal providers demands having some skill, as well as regular fine tuning, especially if you want to find the best Forex automated signals. ZuluTrade enables you to use a wide range of brokers. There are more than 50 supported brokers in the USA, UK, Russia, and New Zealand.
The advantages of ZuluTrade are:
- A free functioning demo trading account, so that you can try it out without spending money.
- An extremely wide choice of traders or so called signal providers to follow or copy.
- A choice of brokers in different countries.
- Data is open for users and is fully transparent.
- Customers may comment directly on profile pages of signal providers.
- Low ongoing cost.
- No entry cost included and low minimum deposit requirements.
- Money management features.
- Good mobile apps.
However, there are some drawbacks:
- There are more poor and inconsistent signal providers than there are successful ones.
- Signal providers are not obliged to trade using their own money.
- For non-FX traders or beginners, money management can be rather difficult.
- It requires regular monitoring until the right mix of signal providers is selected.
Overall, ZuluTrade is a good social trading platform, with a network deprived of entry costs, and low ongoing costs. However, basic knowledge of money management is required.
In this article we have discussed Forex automated trading signals, how to choose them, and have reviewed two different systems in which you may find and apply the best FX automated signals. We hope that this article has been helpful for you in terms of knowing how to place future trades, and for understanding Forex automated trading signals. If you would like to learn more about automated forex trading signal providers, make sure to check out our related article: Best Forex Trading Signal Providers
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.