All About Technology That You Need

I firmly believe that technology can make trading Forex easier. However, there are a couple of issues that have arisen during my experience so far that can create unexpected traps.

A system is only as good as its data. I have had several times where my data-feed has dropped, and my forex application may miss a trade or two. Ensuring that alternative feeds (even though not exactly tied to a broker) exist is very important.

There are non-automated 'feelings' that sometimes can help. Usually auto-trading eliminates the emotions that often cloud judgment. However, occassionally one look at the chart will show that a particular trade is not the right one. Technology can help in recognizing these patterns and situations, but the safer method is to err on the side of caution. I attempt to program my applications to not trade when there is any degree of uncertainty (even beyond the system's parameters).

Outside events can affect a trade. News releases can make a good trade go bad. Byu focusing just on technical analysis, a system will have to ride out news cycles. Often it will be unable to. Any decent system needs to take external events into consideration. This is another key point I make sure my software accounts for.

There are many benefits to auto-trading. The above is a non-exhaustive list of some of the issues I have seen so far. In the long run, however, I believe technology can enhance and ease our trading.