The eternal quest for the perfect Forex Trading System continues and Forex Traders around the world are still making the same mistakes over and over. They go on forums or read reviews of off the shelf systems that may have been designed to generate allot trades but maybe not much profit. Forex Traders spend as much as thousands of dollars on an Expert Advisor from the MQL website without even knowing how the system was created and even really knowing if that system has generated any real long term profits.
Forex Trading System It’s All in The Data
Looking for the perfect Forex Trading System it all starts with the data. All Forex Trading data is not the same. The Forex Brokers might use different sources of liquidity and this inconsistency may cause inconsistent results. The data needs to be consistent over the years and even decades. Any new systems that are being developed need to be sourced from the same data point. This is another reason that off the shelf EA might not be a good idea. Most likely you would not know the source of the data used and even if results are published using a different broker would probably generate different results.
Machine Learning is the Future
One place that Forex Traders can go to is inovancetech.com where they can for free utilize TRAIDE a machine learning tool to help traders create using machine learning algorithms. Here you can start by signing up for the site and you will have full access to a suite of indicators and tools to help you design and test a Forex Trading System that will get you real results. In creating this Forex Trading System, it is important to remember to use a longer time frame to start. Forex Traders are notorious for jumping to the 1-minute trading system thinking I’ll get more profitable trades in the shorter time frame. The reality is that the shorter the time frame there is more noise in the data. It is advised to start creating a system with 4 hour data and up. One of the great features this system has is that it allows you to adjust your parameters and immediately see the results in an equity curve.
The system also allows you to see and test how the system would perform on the short side as in some cases systems might work better as a short trade. There are many tutorials on how to create a system and some systems that are there as a template. The lesson for Forex Traders here is that for something to work it doesn’t necessarily have to cost you thousands just some work and the ability to test until you see real results.
Trading Forex and Derivatives carries a high level of risk, including the risk of losing substantially more than your initial investment. Also, you do not own or have any rights to the underlying assets. The effect of leverage is that both gains and losses are magnified. You should only trade if you can afford to carry these risks. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary.