Sunday, 3 May 2009

FOREX SYSTEMS:

I don't know who said it but I agree with it, forex systems work some of the time and not all the time. The reason I believe is simple; Markets change and by design, systems are constant. It was perfectly ok having stop-losses at 30 - 40 pips 2 years ago for GBP/JPY but in today’s markets, your SL will get triggered every single time with automated trading.

When I refer to forex systems, I am talking about 'Rule-based trading systems' - an approach based on clear-cut rules. This form of trading requires little or no human intervention when deciding trade entries or exits. Finding a system that works is daunting or is it?

If we start with the principle that systems don't necessarily work all the time, then would it really matter which system we employed?
would it not make sense to just pick a system any system, learn it and then implement it using a micro account.
I am not a fan of demo trading, the reason is simple; show me trader who has blown their demo account and I will show you a 100% forex system.
If you stick to a system, you acquire the knowledge needed to become an expert and over time you will be able to adapt your system to the ever changing financial markets without necessarily changing your system.
Forex systems are like relationships, work hard at the one you have, the grass is not always greener on the other side.




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