Definition – What does Automated Currency Trading mean?
Automated currency trading is a method of trading where the forex trader allows trading software to enter and exit trades based on an algorithm or trading strategy he has chosen. The trader sets the parameters that the program follows and selects the indicators, usually testing and tweaking it with backtesting before taking it live.
Automated currency trading is also known as automated forex trading or automated fx trading.
ForexTerms explains Automated Currency Trading
There is a bit of a misunderstanding about automated currency trading, in that many people assume traders just press a button and profits flow. Unfortunately, these programs are not to the point where they can trade successfully independent of a trader’s input. Automated currency trading does take the emotions out of trading and allow a trader to implement his strategy more efficiently, but it doesn’t take all the work out of trading.