Forex Trading Systems That Work - The Surefire Way To Find One
Automatic Forex trading systems are a dime a dozen, but Forex trading systems that work are hard to find. Sure, there are thousands of sites advertising easy Forex riches out there, but if you think you're going to be able to "stumble" onto a sure thing, you are sadly mistaken. Finding Forex trading systems that work is a skill, and by the end of this article, you'll know how to be 100% sure that a system works before you invest your hard earned money.
Identifying Forex Trading Systems That Work
The characteristics of Forex trading systems that work aren't obvious, in fact, they are counterintuitive. Naturally, as people, we're conditioned to think that winning is good and losing is bad, so obviously when it comes to trading Forex, lots of wins and very few losses are good... right? Wrong. In Forex trading, the number of winners and losers are not nearly as important as the size of your winners and losers. When you understand that, you'll realize that 90% of the systems out there are complete and utter rubbish because they try to maximize the number of wins by sacrificing the size of their wins.
How do you identify Forex trading systems that work? Simple - you look at their backtesting results first. I know, there are a lot of people out there that will tell you that backtesting results are useless because they're easy to fake. That's true, but what else are you going to go on to make your decision if you don't at least consider the backtesting results? Other peoples' testimonials? Obviously those can't be fabricated... or can they?
Now, when you look at the backtesting results, you're not going to look at the winners like everyone else. No sir. You're going to look for the losses, and how they stack up with the winners. If you see a set of backtest results with no losses, run. If you see just 1 loss in a sea of profits, run. There's no way that a system like this can repeat those results moving forward, so don't waste your time.
How To Be 100% Sure Before You Invest Your Money
What I look for in an automatic Forex trading system is a good proportion of winners to losers. If I see a system that wins about 60-70% of the time, with 40 pip winners and 40 pips losers, then I know that it's a very good system. That's because it's totally transparent with the losses, which means that I know what to expect and that there's no nasty surprise waiting for me around the corner. Next, I look for a lengthy money back guarantee, at least 45 days and ideally 60 days long.
The purpose of the money back guarantee is to allow me to do my own independent testing and verification of the results. Basically, I use the backtesting results to weed out the junk, and do my own testing to find the best few to commit my funds to. Of course, all my testing is done on a demo account, so there's really completely zero risk on my part in buying the system and testing it out. And since it runs on autopilot, there's no great time or effort that I'm committing to it as well. It's a totally risk free way for me to potentially find a lucrative Forex passive income, and you can do the exact same thing too!
Once you understand what to look for to find Forex trading systems that work, it becomes much easier to cut through the chaff and find the real deal in Forex trading. It takes time and some effort to start off with, but you'll be well rewarded for your work at the end.
I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!
