How To Survive and Succeed in the Forex Market With An Automated Trading EA

The Forex market is the largest market in terms of volume and transactions, offering plenty of opportunities to make a considerable amount of money quickly. However, it also poses an equal amount of risk for losing money just as quickly. In this article, we discuss how automated Forex trading can improve your chances of surviving and succeeding in this market.

The Importance of Psychology in Forex Trading

No matter what trading strategy you use, psychology plays a critical role in the success or failure of any Forex trader. Most traders find the psychological aspect of Forex trading the most difficult to master. Only one out of ten Forex traders can survive and succeed in the market. The primary factor that contributes to the failure of the majority of traders is the psychological aspect of trading.

Even new traders who followed the recommended steps, such as doing research into Forex trading fundamentals, opening a demo account, testing strategies, and selecting the best-returning one, suffer from the mindset when they trade with their real money. Mistakes such as opening a trade too early or closing it too late are common, leading to a sudden loss of capital. However, it’s not the strategy that failed; it’s the trader’s reaction to the psychological aspects of trading.

The Benefits of Automated Forex Trading

Forex trading can be automated, taking the pressure off of the trader and their human flaws. Automation puts trading into the hands of an Expert Advisor (EA). An EA is MQL-programmed software designed to work with the Metatrader Forex trading platform. You connect it to the relevant trading chart and let it conduct the trades according to your chosen strategy.

The beauty of EA is that it runs your trades automatically without any hesitation. It abides by your strategy and doesn’t suffer from the psychological aspects of Forex trading that contribute to the failure of nine out of ten traders, allowing it to continue trading 24/7 (as long as markets are open).

Programming and Setting up an EA

You can learn MQL to program an EA yourself or hire a programmer to do it for you. There are many reasonably-priced and talented programmers on platforms like Fiverr or Upwork. Once you have your EA programmed, put it online and let it run around the clock. Instead of having your computer running continuously, consider using a Virtual Private Server (VPS) that costs around $10 a month to run your EA permanently. You may even be able to find a broker who offers a free VPS service. Log in, install MT4, connect EA to the relevant trading chart, and start automated trading.

Optimizing Your Trading with a Copier Program

You’ll always have some losing trades despite your strategy’s effectiveness. The key to success is optimizing your EA to minimize these losses. You can use MT4 trades copier programs to copy Forex trades from one MT4 platform to another. Configure the program to copy only successful trades to increase your proportion of successful trades significantly. Install two MT4 platforms, one for your Real-Money account and one for your Demo account. Run the EA on the demo account and load the copier program onto the two MT4 platforms. All losing trades stay on the demo account.

Written by Frank Breinling

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