How do you find a good Forex trading system
? Most are junk but traders still buy them. All they need to do to find a winner, is check the enclosed points and they will be able to find the small minority which can help them enjoy currency trading success…
Follow the 5 points below and look for them in any trading system you intend to buy.
1. Real Track Record of Simulation
Most Forex trading systems sold, only produce simulated track records or ones that are not verified by an outside source – never trust them! Look for an independent audit, of at least two years.
2. The Presentation
The advertising copy, will tell you if the system is likely to be real or not and if you see statements like the ones below, the system is a loser.
- Double your profits each month
- Predict the markets with accuracy
- Trade with little or no drawdown
The above claims are ridiculous but many traders still believe them.
Let’s be clear, the best systems will return around a 100% per annum and no system no matter how good it is will have a drawdown of less than 20% or a duration of a few weeks. Over the long term, that’s a very healthy return and will compound up quickly – so be realistic.
3. The Rules and Logic
Need to be revealed and if there not, you will never have the confidence to trade the system so pass it by.
4. Money Management
All the simulated and made up Robot track records have no money management rules or ones based on unsound logic. This is ok going backwards when you know the closing prices but will lead to a swift equity wipe out in the real world.
5. Support and Ease of Use
Look for a program that is easy tom run and with prompt technical support, your system if you have problems with it or if it has bugs will cause you serious problems.
It’s a simple checklist- but will save you a lot of money by helping you avoid losing systems and lead you to one which can help you make big profits and enjoy long term currency trading success.