Contributor Since 2012
Forex is the most widely traded financial market around the world. Top bankers, exporters, government, investment firms and venture capital deals with foreign exchange or Forex at any point of time.
Forex is used in daily trading of goods and exports. With globalization, money is transferred or exchanged into other currency for payment and receivables. Out of all the major player, there is 1 type of investment in forex that gain profit and this group of profiteers are forex trader. This is a similar class as a stock and share trader except the purchase is currency instead of the company shares.
My main reason for writing this is to show the automated Forex trading. But before I touch on automation, I need to explain why Forex is chosen. Trading can be performed 24 hours a day (vs stocks which is 8 to 5 usually) and can perform sell trade. Most investment instruments can only buy first then sell. For Forex trading. It can do sell first then buy. Unlike many other stock exchange in the world, shares have to have a buyer and a seller then the shares can change hands. For Forex, since it is largely connects into a pool of currency demand and supply, you can almost instantly buy without having to wait for seller. Most important of all is that it wont bankrupt, reach zero value or translate into worthless paper. Because you are using currency to buy currency and that it self is the assets you be holding.
How to profit from Forex
Before automation is possible, likewise for stock trader, foreign exchange are traded manually by trader. Currency are buy and sell with human involvement. The price will raise and fall. The main aim is to profit by buying low and selling high. Basic mathematics applies. But with the turn of the century comes computing and programming, this change and evolve investment. This includes traders in the foreign exchange community.
Automated Passive Income
With automation of the trading strategy which execute trades for you according to your programs. Steams of passive income is made possible using MT4 trading platform. Expert advisor are program that run on your computer which trades for you automatically. You only need to setup a trading account and run your Expert Advisor program to enable passive income. Personally I have use it to achieve monthly income without having to look at trading chart all the time. But I still manual trade when I see some news that will leak to drastically drop in currency price.
Can this be sustainable in the long run?
Definitely you still need to monitor every now and then. Pick up those bad trades and add in new profitable strategy. Some trading strategies are especially profitable in trending market or sideways market. While others are reversal and martingale trading. And lately popular ones are scalping strategy. Be side monitoring your program, you need to keep in mind money management and margin call. Always keep enough capital for draw down (strategy maximum drawdown) and your margin required for trades (trading account leverage). As a recommendation always use 10% of your capital to buy and hold margin for your Forex trades.
I wrote many articles on the different strategy and have created many Expert Advisors using combination of different trading strategies. Refer to my website for more information.