You can buy a Forex robot and most claim big gains but most are junk and will lose you all your cash and while people think its hard to build their own Forex trading system it's simple, if you follow the steps in this article.
Here we will give you a simple step by step guide to building your own Forex trading system which can make triple digit gains.
Don't Make this Common Error!
Many traders and robot vendors engage in curve fitting which is bending the rules of the system to fit the data. They test the system on back data and keep adding more variables in until it works but this is just like shooting at a barn door and then, drawing a chalk circle around every shot afterwards to make every shot look like a bullseye! A Forex trading system should be simple and trade ALL currencies and markets conditions in the same way.
Building a Simple System
A system can be very simple and win - if you want an example of this here is a one rule system that works:
Buy a new 4 week high in a currency pair and hold it until a new 4 week low is hit and then reverse and go short thereafter, simply reverse on new 4 week highs and lows.
Does that sound simple? It is and does it work? Yes it does, the above was devised by trading legend Richard Donchian and it has worked for over 30 years, so don't make your system complex keep it simple.
You should use chart patterns i.e. support and resistance and a few momentum indicators to confirm your trades - two or three is the MAXIMUM you should use and my favourites are - the stochastic, the RSI, MACD, ADX Line and Bollinger bands - try a few of these and you can do very well.
The Rules
should be objective in terms of buying or selling and the system should be based on cutting losses quickly and running profits. Money management is the key to as systems success and your exit strategy should be placed as soon as you enter the trade.
The Percentage of Traders You Win Doesn't Matter!
What does matter is the size of your profits to your losses. I work with long term trend following systems and these lose 70 - 80% of the time but the winners may not be many but there so big in comparison to the losing trades these systems make triple digit gains.
Your Forex System
Most traders think building an objective Forex trading system is hard but it's not - anyone can do it; just remember to keep it simple and robust, employ strict money management and you will have a Forex trading strategy which can make you triple digit gains in 30 minutes a day or less.
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Article Source: http://EzineArticles.com/?expert=Kelly_Price
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