Currency Trading

Forex: Autotraders Vs Trading Signals



In Forex trading, you need some quick means or techniques to help you analyze the market and make more of profits than losses. And that’s where Autotraders and trading signals come in to assist in forex trading.

To help you on either choosing Autotraders or trading signals, I’ll discuss each item together with its pros and cons.




Autotraders is a slang or short form of the word automated trading mainly on Forex and its where all trades are executed through programs run by a computer. The plans are set to analyze the best time to either buy or sell a currency.


  • Backtesting – Its where it determines the historical data and applies trading rules according to that information to check the viability of the rules and regulations set.
  • Preserves Discipline – Autotraders ensure that discipline is maintained at all times. Once a trade rule is set and executed it cannot be altered since it’s done automatically. Also, pilot-errors are significantly reduced, and there is no way of keying wrong values when trading.
  • Minimize Emotions-In human trading you may have emotions (such as fear, anxiety, and frustrations) affecting your trading capabilities. While in Autotraders there are no emotions involved since its executed by a computer system. And if there are any emotions there are minimal than in the case of manual trading.
  • Consistency – Autotraders allows you to achieve a high consistency by trading your speculated plan and sticking to it.
  • Reacts to Trade Opportunities Faster – Computers can respond faster to changing market conditions than manual trading. With Autotraders, you can get in and get out of the market without wasting even a single second. It has an improved order entry speed.
  • 24/7 Monitoring – The computer does not require sleep, and as long as the Autotraders are set, you’ll monitor the market the whole day without missing an important detail.
  • Diversify Trading – With Autotraders, you can employ various strategies or trade on multiple accounts at one time.


  • Mechanical Failure and Monitoring – Computers are prone to failures due to hardware or software issues. Also, there can be issues with the internet connectivity, computer crashes, and power losses that can limit Autotraders monitoring capabilities.
  • Over-optimization –  If you employ Backtesting, trading techniques can look better on paper than when trading.




Trading Signals

Trading signals offer suggestions of when to enter or leave a market when trading a particular currency pair. Signals provide the specific time and price to either buy or sell a currency.


  • 24/7 Market Analyses – You don’t need to keep on watching the market since once an opportunity arises, you’ll receive a signal to alert you.
  • Reduces Risks – Trading signals that are good reduces risks involved when trading because they provide real-time information about market changes.
  • Opportunity to Learn More- After receiving the signals you can check the market and determine which specific factors affect those signals. With time, you’ll have gained more learning and experience in trading.
  • Lots of Trading Signals – There are many trading signals at your disposal online. Some are free while others you need to pay for them.



  • Scammers – These are people who claim to have authentic signals, and they are just behaving as signal providers to scam people their money.
  • Expensive – Most professionals Forex traders don’t give free signals, and you’ll have to pay for them. Payment can be through paid subscriptions.
  • System Errors – Which occur especially if the signals are from automated machines.




It all depends on what you’re comfortable with when trading and what you think is the best item (Autotraders or Trading Signals) to choose for Forex trading.

Facebook Comments


Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

About Absolute Currency

At Absolute Currency our mission is to be the best currency news adn information providing a vast array of knowledge, market updates, and resources in the financial markets. Our goal is to be the ultimate one stop destination for anyone that has an interest in or questions regarding currency. We strive to maintain a truthful and unbiased compendium of knowledge, both in content, product reviews and information and more. No buy, sell, or hold recommendations. Past performance does not guarantee future results.
March 2018
« Feb    

Copyright © 2017 Commerza. All Rights Reserved

This copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only.

MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this website or email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements. If you find reports or news to be in error, contact our support desk with the correct information and proof for us to correct any errors. This website is AS IS and we make no claims nor warranties.

Powered by Commerza.

To Top