The online forex trading space is a tough cookie to crack. Not only do you need to have the capacity to read and understand historical pricing trends – as well as interpret how fundamental news can affect a particular currency – but you also need to know how to trade your findings in a risk-averse manner.
Sure, you might be a seasoned investor that has a long-standing track record of making consistent gains in the forex space, but you’ll know first-hand that there is only so much time that you can devote to trading.
As such, if you’re looking to take your forex trading strategies to the very next level, it might be worth considering the merits of an AI trading bot.
In this article, Learn 2 Trade – a UK-based forex signal provider, pinpoints 5 key reasons why an AI bot can take your forex trading career to the next level.
- Trade Multiple Currency Pairs Without Losing Sight
You will often find that the most successful traders active in the online forex arena are those that niche down to a small number of forex pairs. This allows them to specialize in specific currencies, as opposed to being a jack of all trades and master of none. This is the case in all industry sectors – and not exclusive to just forex.
However, as effective as niching down in the forex space can be, you are effectively missing out on heaps of trading opportunities. For example, you might have the required skills to foresee an upcoming bull-run on GBP/USD – but if the pair in question does not fall within your niche portfolio of pairs, you will likely miss out. After all, there is only so much time that you can devote to research.
With that being said, a well-designed trade signals that have been instructed to follow your strategies to the ‘t’ can trade as many currencies as you wish – without suffering from fatigue!
- Trade on a 24/7 Basis
Leading on from the above point of trading multiple currencies simultaneously, Learn 2 Trade adds that a well-programmed automated bot can buy and sell currencies 24 hours per day. This is something that would be beyond the realms of possibility when trading manually.
For example, let’s say that you are based in the UK, but you wish to trade USD/JPY during standard market hours in the US. This might be because you prefer trading currency pairs when market volume is at its highest, or simply because the spreads are more competitive during certain hours.
Either way, by using an AI trading bot, you can access any time zone that you wish – 24/7!
- Human Emotions are a Thing of the Past
Regardless of how long you’ve been trading in the forex space, human emotion affects us all. This is especially the case with traders that are still new to the ups and downs of forex.
A common occurrence might see a newbie trader attempt to chase their losses by increasing the size of their stake – something that is an absolute no-no in all investment arenas.
Crucially, an AI trading bot is instructed to follow pre-defined conditions, meaning that it will never attempt to place trades outside of its algorithmic parameters. As such, you will never need to worry about the adverse effects of human emotions again.
- Utilize Proven Trading Strategies in an Autonomous Manner
One of the best things about AI trading bots is that you can customize the entire building process. This includes entry and exit points, trade sizes, and which technical indicators orders should be based on.
As a result, AI trading bots allow you to mirror your proven trading strategies, but in an autonomous manner. For example, if your ‘Secret Sauce’ centres on trading AUD/USD when trading volumes are low and volatility levels are high – this is exactly what your bot can be designed to follow.
Most importantly, all of this can be achieved without you needing to lift a finger. As such, you’ll never need to worry about finding time to trade again!
- AI Trading Bots can aid Technical Research
Although the previously discussed benefits have centred on the actual trading process itself, Learn to Trade explains that AI bots can also be used as a research-only aid.
More specifically, trading bots are just as effective in scanning the markets with the view of notifying you when a potential trading opportunity is in the making. This would be hugely beneficial for those of you that wish to place trades manually, but you need some assistance in performing technical analysis.
The Learn 2 Trade platform itself utilizes AI technology to aid its forex signal service. As and when the technology finds a trading opportunity, it then notifies its subscribers via an instant notification. As each signal includes the relevant entry and exit points, traders can then place the required buy and sell orders manually.