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Automated forex trading software is a computer program that analyzes currency price charts and other market activity. The software identifies the signals - including spread discrepancies, price trends and news that may impact the market to locate potentially profitable currency pair trades.For example, if a software program, using criteria the user sets, identifies a currency pair trade that satisfies the predetermined parameters for profitability, it broadcasts a buy or sell alert, and automatically makes the trade. A major advantage is the elimination of emotional and psychological influences determining what and when to trade in favor of a cold, logical approach to the market. Automated software makes your trading decisions unemotional and consistent, using the trading parameters you've pre-established or the default settings you've pre-installed.