Currency Trading Systems - Check This Key Point If You Want Big Profits!
If you are looking at buying a currency trading system then you need to be careful 99% are junk and won't make you money to find the elite systems that can make you profits you need to check one key point.
The first point you need to check is the track record real or made up?
Check for the disclaimer below and if you see it avoid buying the system - here it is read very carefully:
"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 fact is most of the systems you see on the net carry this disclaimer and it means the track record is not worth the paper it's written on. Anyone can simulate profits in hindsight, knowing the closing prices - but alas currency trading is not that simple.
When buying a currency trading system always insist on a real track record and audited statements from a broker. I saw one system where the vendor simply shows copies of his bank statement and that's his system sales, not trading profits!
You have to say to yourself if the vendor doesn't have the confidence to trade his or her own system why should you?
Once you have a real time track record you have at least some proof the system has worked. The key point with any system is applying it with discipline so check the drawdown (worst peak to valley) and recovery time. Finally, check you're happy with it and then trade it assuming this will happen again.
It's also a good idea to learn the logic of the system as it's easier to follow a system when you know how and why it will work longer term.
Another Way
Is not to buy a system but get a free one. A great one which is simple and works is.
Richard Donchian's 4 Week Rule
Look it up in our other articles its one parameter and it will beat 99% of the currency trading systems you see on the net.
The other way is to simply build a trading system yourself - it's a lot easier to do than many forex traders think and in the next article in this series, we will look at how to build your own successful currency trading system in under a week.
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