There are two principal criteria which you have to program rules for and they are - Industry Entry and industry exit or your stop. You can use a significant number of indicators to time your trades but on an automatic trading system, you want to use as couple of as attainable an here I am going to show you how to make a 1 rule program simply based upon trading volatility.
A highly straightforward program would be 1 based on the regular deviation (volatility) of cost. The Bollinger Band for example, shows a mid typical band and the two outer lines, are standard deviation from the norm or average, as volatility increases the bands widen away from the typical. You can simply construct a straightforward volatility technique with your own settings so here is what you do..
You would have to decide a mid line moving typical to start out. This is where rates will find support in a bull industry and resistance in a bear market place. A purchase signal, would be generated (and held) in a bull marketplace when the average is hit, the outer bottom band would present the quit level.
What you require to do is to test various moving averages and regular deviation settings for the outer bands but this is straightforward to do with today's software. You would then, need to have to make a decision a spread of currencies to trade it on and test it back over time, to see how profitable it is - considering it only has 1 rule, it will show a realistic back test of efficiency.
The logic of the above system is straightforward to comprehend and beneath, you will uncover how to generate a acquire signal and stop in a bull market place.
In a powerful bull trend, costs could go away from an typical value but they will normally uncover assistance against into the average. If volatility takes prices by means of the mid band to the outer bottom band, the provide and demand circumstance is possibly changing from bullish to bearish and a stop can be placed
You have to do a bit of research and you can add additional filters if you wish but a volatility based program if traded on a spread of uncorrelated contracts will work (they rather hardly ever operate on a single contract).
I have noticed individuals make significant profits with basic automatic systems and you can too. Sure you have to devote some time researching and testing and also as with any system trade extended term but if you do a bit of perform, you can quickly develop your own Forex automatic trading program and make some great profits in under 30 minutes per day.