I know Forex traders who do not like automated Forex systems and I meet Forex traders who think automated Forex systems is the perfect solution for consisting and fear-free Forex investment. I can relate to both sides of these opinions. Automated Forex system do bring extra income only if Forex traders make sure they do the following:
Two adages I have heard the most when trading forex are “the trend is your friend” and “in the long run, we all die”. The latter can be interpreted as the importance of Forex technical analysis while the former refers that trading with trend, instead of against it, can increase your long-term success.
The trend here is not any trend in the Forex market, but a major trend. It’s the direction of the market you are following. For different types of Forex traders, the major trend is different. If you are Forex scalper, you would like to use 1-hour chart to observe the trend. If you are a day trader, may a 5-hour chart then.
Why is the trend your friend? The trend direction is where the market is moving, currently though. Taking the major trend can at least guarantee that most of the price ticks are thte direction of the major trend where most of the market time is building the major trend.
Think this way, the success of your Forex trading strategies depends on the percentage of your winning trades. If you always trade the bigger odd of success, your successful trades will take the larger proportion; and vise versa.
Look at the figure below. You can see the major trend consumes most of the Forex market history.
http://www.ikonfx.com/forexblog/forex-trend-interpretation-%e2%80%93-why-trend-is-your-friend/
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