The first question we need to consider is whether or not there are actually any good forex software applications? The good news is that yes, there are without question some pretty decent bits of kit out there but trying to cut through the smoke screen of some slick advertising promotions isn’t always easy. The first thing to be aware of is that forex software falls into two generic types, and determining which is best for you is not just a matter of price and reliability, but which one suits your circumstances as a trader.
The first kind of software you will find is simply an automated advisory service. These types of applications will typically alert you when to enter and when to exit the market for any specific trade. These types of applications are typically used by “hands-on” traders who have a specific trading model that they are implementing based upon their clients trading expectations and portfolio. The main downside for this type of application is that you need to be around whilst the markets are open to execute trading decisions – which is usual if you are a full time professional trader.
The other type of forex software you may find these days are commonly known as expert advisors, and as per the first kind described above, they too are designed to alert you to up-coming trade entry and exit points. They also have the added benefit of executing these trades on your behalf, based upon trade set-up rules that you configure the application with before hand. This means that you don’t necessarily have to be glued to your screen during trading hours.
Arguably the most important set-up rules that these types of application incorporate are predefined stop-loss and take-profit parameters. This helps to keep the emotion out your trades and protects your position in the event of a trading position going south. Many inexperienced traders and experienced ones too make the mistake of either chasing a losing position or riding a profitable one for too long.
Therefore, if you are thinking about getting involved in forex trading and using an automated trading system, or indeed if you wish to bolster your current operation, I would advise you to do so, no matter if you use a fully or semi automated software package. Both these options will help you minimize painful mistakes and become a more profitable trader. However, go for the option that best fits your personal circumstances as a trader.