Automated trading strategies are becoming increasingly popular amongst private individual Forex traders. In a recent study conducted (by IBFX) 94% of traders said that they would use the same or increase the amount of automated trading they will perform in the next twelve months. Only 6% stated that they would decrease their use of automated trading strategies. On top of that the study also showed that as of September 2010, 56% of all trading activity on the New York Stock Exchange was high frequency, or computer automated trading.
In 2004 Algorithmic trading made up a mere 4% of total Forex trading. By 2007 this figure had risen to 28% and estimates are that currently around 50% of all Forex trades are automated and these figures are expected to continue to climb rapidly. There is no doubt that automated Forex trading systems are gaining in popularity.
The main reason for this https://bitql.co/ growth in automated trading is technology. As technology is a driving force in most other fast moving sectors, so it has had a huge impact on Forex trading systems? The first major step towards the development of auto trading systems was the move away from floor trading to computerised trading. Once this occurred trading firms developed their own trading systems to place orders through the new electronic exchanges.
Retail traders now have access to technology that previously was only available to these large banks and institutional trading desks. With the highly advanced trading platforms now available to individual Forex traders around the globe, they can now compete on an equal footing. As traders began to implement automation in their Forex day trading systems they soon realised the huge opportunities that they presented. Traders began to share ideas and approaches and now automation is the way of the future for individual traders.