Because of the sheer number of Forex systems available today, it is easy to be overwhelmed as you check out each one of them and as you try to determine which will work best for you. This is especially true if you are new to the business of Forex investment trading. Fortunately, there are things that you can keep in mind to make the whole process a lot quicker and more efficient as you search for the best Forex systems to use.
Steps in Choosing the Best Forex Systems that Work
Here are five steps that amateur and seasoned traders can follow when choosing among the many beginner and expert Forex systems in the market:
1. Before starting your search for a good and reliable Forex trading system, decide on what kind system will be most suitable for your needs and goals.
Are you planning to have an automated Forex trading system that will allow you to spend less time in front of the computer or do you want to go for a candlestick Forex trading system so you can personally analyze the charts first before you make a decision? There are all types of Forex trading systems out there designed for various trading styles. Some traders prefer a Forex day trading system, while the best Forex trading system for others may be a position trading system where they purchase currency pairs and hold them for weeks and even months. By determining what you need, your risk aversion level, and what your trading style is, you will be able to narrow down your search and have an easier time choosing among meaning competing currency trading systems.
2. Make use of search engines.
There is no reason to not use your best available resource, the Internet, as you look for the best Forex system. You can try typing in the terms “free Forex systems” or “Forex systems research companies” in search engines and you should be able to have plenty of websites that offer specific information on the different systems, as well as websites of companies and firms which are offering their services. Carefully read through them and make comparisons so that you will be able to make a sound decision.
3. Check for reviews and testimonials of the systems you are considering.
Once you have a list of the systems that have potential and fit your trading style and temperament, you can then search for reviews and testimonials that other people have about them. You can try typing in the terms “Forex systems review” or “Forex systems reviews” in search engines and then go to many different websites. You can go to Forex trading forums such as Forex-TSD.com, ForexPeaceArmy.com, ForexRealm.com and others and you will be able to get all the information you need about automated Forex trading system options and the other systems, as well as honest reviews from real people. You will also be able to interact with other traders and ask for recommendations to help you out in your search.
4. Also, contact Forex brokers that offer demo accounts or free trials.
This will allow you to test out the Forex system that a particular company is offering to determine whether it will work for you and your trading style.
Seek Professional Advice
Through following these steps, you will be able to choose among the Forex systems in the market today and have one that will truly work for you. However, if you are still having a hard time, you can always seek professional advice from experienced traders or Forex brokers in the industry. A very good Forex broker is ACM Forex USA, but MB Trading, Dukascopy and others are well capitalized and fall under regulatory oversight.
Good Day Trading Systems
Here are just a few of the Forex systems I have tried that you may (or may not) find useful:
1. GBPUSD Simple
- GBPUSD at 4PM CST
- In Excel, enter high and low of each day (and divide by 2 to get ADR each day for 14 days.
- Get average for 14 days.
- If 14-day ADR is above 200, enter buy/short one pip above/below high or low of day and put TP 50, SL 25.
- If ADR 175-199, TP 40, SL 20
- If ADR 100-174, then TP 30, SL 15.
- If ADR less than 100, don’t trade.
2. Bollinger Band Bounce
- EurUSD H4, GBPUSD HI and H4 (all majors good)
- Forex calendar
- Go only in direction of trend
- Signal Bar – When there is a reversal bar off the middle BB MA, buy or sell one pip above or below signal bar and this is your entry. Can either not touch MA, touch MA, or slightly through MA.
- Trailing sto I pip below lowest low or highest high of last 4 bars
- Exit only with trailing stop
3. Bouncing Pip
- EurJPY HI or GBPJPY H4
- Forex Calendar
- Signal Candle – Best if wait for arrow and ziz zag line on H4, then see signals on H1 and M30.
- Use MF1 to confirm OB or OS condition
- When Entry Bar is right HA color and in your direction, then enter.
- SL above high or low of Signal Candle, or:
- EurJPY HI SL 30
- GBPJPY SL 60
- Can add to positions after short term retracement, or just get out on retracement.
4. Stoch-Fib Trade
- H1 GBPJPY
- Forex calendar
- Stochs 5,3,3 and 14,3,3 (hi/lo, simple) – use only %K and place both in one window
- Draw Fib levels from yesterday high and low with chart shift to put levels on current day (Open is 4pm CST and close is 4PM cst next day).
- Set Fib levels
- 0 label 100
- .764 label as 23.6
- .681 label as 38.2
- .500 label as 50.0
- .382 label as 76.4
- 1 label as 0
- Look for price to break 100 (long) or 0 (short)
- Stochs should be breaking 80 for longs and in or below 20 for shorts. If not, wait.
- When price breaks 100, move Fib line so 0 is where 100 was. Exit at 23.6 (123.6), 38.2 (138.2), etc.
- If 14,3,3 stays above trade, stay in trade. Better if that and 5,3,3 stay above 80, but 14 stronger.
If you don’t know what TP, SL, ADR, BB, MA, Fib, etc., refer to, please go to an online site for basic Forex training. One free site that I recommend is BabyPips.com.