There are numerous currency trading systems for sale online but 95% of them are junk. There are some good ones out there and they can make you great profits, so follow the tips below and find the best currency systems.
1. Real Track Records
The first point to make is that you should if possible get a system that has a real track record that means real dollars, real trading and audited. This may not ensure future profitability but shows the logic is probably soundly based and that the vendor has had the confidence to trade it.
2. Simulated Hypothetical Track Records
Most currency trading systems do not come with a real track record but with a simulated or hypothetical one and you need to take these for what they are: Designed in hindsight knowing the closing prices – there is nothing wrong with back testing but you must ensure the testing was done correctly.
This is the subject of the next point:
3. Beware OF Curve Fitting
Of course it's easy to make profits if you know the forex price data already and many vendors simply make track records up and bend the system to fit the data. When you see a track record with huge gains and low drawdown the likelihood is the vendor has bent the system rules
It is therefore a good idea to see the system rules – do not try and trade any system you do not know the logic of. A good currency trading will have simple rules and simple logic. If they do and the test is realistic then they can work in real time – if their curve fitted they will not work.
Clues to curve fitted systems are:
Lots of rules, unique rules for various trading conditions and different rules, for different treaties. Curve fitting is the major reason most forex trading systems lose.
Many traders bend the system to fit the data – without realizing but many vendors do it on purpose. This is done to show track records which are simply too good to be true to appeal to the greed of buyers – these people are not merchants their normally marketing organizations.
Keep in mind if you see a track record which looks to good to be true it probably is.
THE KEY TO FOREX SUCCESS …
They key to making money with a trading system is to follow it with discipline. This means you MUST understand the logic it is based on to have confidence to trade it through inevitable losing periods, so you need to understand and agree with the logic.
If you do not have the discipline to follow your currency trading system, you do not have a system. You will never follow a mechanical trading system unless you have confidence so make learning it part of your forex education.
If you follow the above tips and have realistic expectations from your currency trading system, you check the logic and you're happy with the performance and draw down then you can trade it for real and enjoy currency trading success for very little effort.