Forex Currency Systems Four Tips To Pick A System That Makes Money

Forex Currency Systems Four Tips To Pick A System That Makes Money



FOREX Currency Systems – Four Tips to​ Pick a​ System that Makes Money
With the​ many FOREX currency systems available,​ you​ can in​ theory,​ simply turn your computer on​ and follow the​ signals to​ generate automatic profits.
That’s the​ theory - but the​ fact is,​ there are many FOREX currency systems sold that are obvious scams,​ and the​ systems will never work.
This article aims to​ give you​ tips on​ picking systems that can make money,​ and avoid the​ scams.
There are two main reasons why most FOREX currency trading systems fail to​ live up to​ their Hype:
1 .​
Black Box Systems
These are systems where the​ logic is​ not revealed to​ the​ buyer - and for a​ FOREX currency trading system to​ be used successfully,​ the​ trader must have confidence in​ it.
If you​ don’t know the​ logic of​ the​ system,​ you​ will not have the​ confidence to​ follow it​ when a​ losing period occurs.
You need to​ follow a​ system rigidly to​ make money - otherwise you​ may as​ well not have a​ system in​ the​ first place.
Using a​ FOREX Currency trading system is​ all about having the​ discipline to​ follow the​ system - and if​ you​ don’t have confidence in​ the​ logic,​ you​ will never do this.
2 .​
Curve Fitting and Optimization
Another indication of​ a​ currency trading system that is​ a​ scam,​ is​ one that involves curve fitting,​ or​ optimization.
These systems give a​ fantastic performance in​ back testing - because of​ the​ tweaking of​ the​ system rules,​ to​ make them fit the​ data,​ and produce profits.
A trader once likened this to​ shooting holes in​ a​ barn door,​ and then drawing circles around every hole - to​ make each shot look like a​ bull’s-eye.
Let’s face it,​ we would all be millionaires,​ if​ we had tomorrow’s news today - but we don’t.
Avoid any system that offers unique rules,​ or​ many variations for trading different markets.
If the​ system is​ based on​ solid logic - it​ should work on​ ANY trending market,​ and should not be optimized,​ or​ curve fitted to​ an​ individual market.
You will never see a​ hypothetical performance that fails!
Most unscrupulous vendors achieve great performance by making the​ system fit the​ data - and this causes the​ system to​ fail in​ real time trading.
Here are four tips,​ to​ help you​ separate out the​ scams,​ from the​ good FOREX currency-trading systems:
1 .​
The Rules and Logic are Fully Explained
You will then have confidence in​ the​ system when it​ suffers a​ string of​ consecutive losses.
2 .​
Some Evidence of​ a​ Real Time Track Record
Has the​ system has made money in​ the​ real world of​ trading?
This is​ the​ acid test of​ a​ system .​
If there is​ not a​ real record,​ look for a​ hypothetical audit done in​ real time - many systems do this before launching,​ and this gives a​ good indication of​ how the​ system will perform.
3 .​
Look for Simple Systems
There is​ absolutely no correlation between how complicated a​ system is,​ and its profit potential .​
In fact,​ simple systems tend to​ work best,​ and will tend to​ be more robust in​ the​ brutal world of​ trading.
Most of​ the​ top FOREX currencies trading systems are based on​ simple logic.
4 .​
Avoid any Optimized System
As already mentioned,​ if​ the​ system has sound principles,​ and then it​ should work on​ a​ broad spectrum of​ financial instruments - avoid any system that optimizes individual markets.
Not all FOREX currency trading systems fail - but if​ you​ want to​ get one that works,​ be realistic and do your homework first.




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