Methods to Trade
The two popular methods to trade are either manual or automated trading. Manual trading is the traditional approach, where a trader analyses the markets, enters, manages and exits a trade by their own observation. Automated trading is when trading is executed by either a signal provider or an algorithm on behalf of the trader.
Which method is better?
This will depend upon your personal circumstances and goals. However a common tendency for manual traders is they want to be in control of the process and the outcome of the results. Whereas an automated trader may not have time to learn to trade, monitor the market, or may wish to avoid the emotional ups and down trading can present you with. So it is not a question of which method is better, but which is more suitable to you.
This is the process of placing your own trades within the software provided. You can either use market orders or pending orders and you would be in complete control of your trading decisions, entry, management and exit.
Trading Platforms for Manual Traders
To trade successfully as a manual trader, you first need to know which markets and timeframes you wish to trade, how to analyse your chosen markets and how to operate your software (so you can enter and manage a trade). Which markets and timeframes you trade will probably be dictated by your lifestyle and or working hours.
This style of trading (also known as Algorithmic, Algo, EA or Robot Trading) is where a computer trades on your behalf, to completely remove the human involvement from the actual trading process:
You can purchase Robots online, get them free from forums or even program your own. MT4 uses MQL4 programming via it's MetaEditor program.
Expert Advisors (EAs) and Robots
The principles behind Expert Advisors and Robots are exactly the same – they allow you to either program or purchase a program to trade on your behalf.
EA's are exclusive to MT4 and the term "Robot" is a generic name for a program which trades electronically.
Robots are very popular within Forex trading and there are literally hundreds of thousands available to choose from. Some Robots are designed for specific markets, whereas others are intended for any market. This is something you would need to check with your EA provider.
Whilst ThinkForex does not supply Expert Advisors/Robots we do allow you to use any EA you choose, on any market of your choice.
VPS (Virtual Private Server)
If you decide to use EA's/Robots then it is likely you will need to use a VPS to run them on. A VPS is a server which allows you to upload your trading platform and robots, run them, and access them remotely.
This offers two key advantages:
- Run your EA/Robot 24hrs without the use of your PC
- Latency can be reduced (if you use a cross-connected VPS)