If you want to use a mechanical Forex trading system and make profits you need to be aware that most systems don’t make money and if you are choosing one, you need to pick one that has a good track record but also one that has these key points.
It’s verified as correct by an outside independent party which has audited it and it should be at least 2 years in length and this will get rid of all the mechanical trading systems that simply claim big profits and produce no track records that are verified!
Look online and you will see lots of cheap Forex robots and Expert Advisors who claim they will make you money with no effort, for $200.00 or less and don’t produce any verified track records, all you get are:
Meaningless back tests done on historical data knowing the closing prices and it’s so easy to make money doing this a child could do it.
Figures the vendor tells you to believe without any independent check! Your supposed to take the word of the vendor but he is selling the system so this is not an independent check.
These systems are all easy to spot by the ridiculously large gains to drawdown they claim and you will very often see 100 – 300% annual gains and drawdown of 1% or less! This would be great if it were true but not even the world’s best traders manage this and a two hundred dollar Robot doing it? Don’t think so!
If you want a mechanical trading system, look for one with a verified track record two years in length and the best will do 50 – 100% gains with 20 – 50% drawdown and these drawdown periods can last for a few weeks to a couple of months. When trading ignore these drawdown periods (they simply happen) and keep your eye on the long term performance.
If you want to trade a Forex trading system focus on the long term and accept drawdown, all systems have these periods but that won’t stop you making a lot of money long term, if your system is based on sound logic.
If you want to trade a mechanical Forex trading system choose one with real performance figures which are verified, learn the logic so you have confidence in it, focus on the long term and you can generate a great second income for 30 minutes work or less per day.
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