There are lots of forex trading systems online and all promise to make you a lot of money, some can but most don't. This article is all about finding the best currency trading system for you...
Get Best Forex Trading Robots to help you to make profit!
Lets look at the points to consider in no particular order of importance, they ALL are!
1. Mechanical or Human Input
Some traders like a completely automated forex trading system, others like to have some manual input on the trading signals - the one you choose will simply depend on your trading personality.
2. Do You like Action or - are You More Patient?
If you are a patient trader, then a long term forex trading system will suit you. If you like short term trading, then you will be more attracted to swing trading - again this is simply personal preference.
3. Is the Track Record Realistic?
The first question you need to ask yourself is the track record real?
By this we mean has it been traded. 99% of forex trading systems we see on the net have not and simply make the track record up in hindsight and use this warning:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
The system may work - but most simulations fail and really you best off with a real time track record.
4. Can You Stand the Peak to Valley Drawdown?
A track record can make profits but it will have drawdown so assume that you join on the worst possible day and check the worst drawdown.
Can you stand it in terms of size and time to recovery?
Always assume your worst drawdown is ahead of you.
5. Do You Have Confidence in the Logic?
You will never have the discipline to apply any currency trading system unless you understand and have confidence in the logic. Keep in mind, any forex trading system has loses, so you need the discipline to ride them out.
Make sure you take the time to learn the logic and have confidence in it, as without the discipline to follow your trading system - you don't have one!
The Myth and Reality
The above are basic questions you need to ask when considering buying any trading system.
There is a huge industry in forex robots and vendors promising you huge riches based upon a simulated track record but they normally always fail.
Be sensible and be realistic in terms of seeking out a trading system that's right for you in terms of - your personality, your tolerance of risk, your objectives and your understanding.
Spending some time and keeping your feet on the ground, will enable you to find a forex trading system that's just right for you and can lead you to currency trading success.
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