I am here to discuss about the best forex mt4 trading trading systems. Of course you know what trading systems are and what they do to your forex account. Forex trade systems are strategies or laws that guide your forex transactions. They are like rules that tell you when to enter a market, when to exit and how much to risk and profits to target for.
Now this is quite different from automated trading systems because in that case you depend on robots to do all the work for you while you observe or supervise as the case may be. But forex strategies guide you while you buy or sell currencies at your own risk.
Forex trading systems comes in various types and from various sources so it is difficult to determine the best of several options. What you should bear in mind is that you should do your own diligent research to come out with the best the world can offer. But this is a tedious work considering that there are thousands if not millions out there and a vast majority are not worth the time sorting them out, the reason for this article.
This article presents points to consider when making your choice of trading systems.
Let’s consider point number one. Profitability of the system. Why is this important. Because you are in the business of currency trades and you target to make profits. So a good system should be able to tell you how profitable it will deliver. This is generally calculated in pips per month. This means that a good forex program that promises a certain number of pips per month say 300 for example is telling you exactly what to expect when you use it in your online trading live account. The more the pips per month ratio, the more the profitability of the trading system. You also stand a chance to double your investment in a few months.
Secondly,the historical drawdown of the system. Yes the maximum historical drawdown of a trading system should be considered when making your choice of forex trading programs. It is defined as the largest decrease in cash equity that has happened in the historical past of a forex account,which can be evaluated on a back test or on a live account. It is usually expressed as pips or as a percentage of cash float used when testing out the system. This drawdown is used to compare between different trading systems. You also use the drawdown to determine how much you need to invest in the system.
Another point to consider is the consistency or stability of a system. A forex system strategy with high profitability and income potential without stability is incomplete. What it means here is that you only have winning trades occasionally and periodically. Think about having winning trades once in a month and then the rest of the month you only observe the trend. It makes your trading experience boring. But with a stable and consistent one, you have all it takes to be in the trade regularly and profitably.
The profit-loss ratio of a forex system strategy better known as forex trading system is the next point to consider in picking out a good system. This is the ratio of winning trades to trade losses in forex transactions. The higher this ratio, the better for the system. So look out for a higher profit-loss ratio in a system based on forex transactions.
There are so many other points to consider when picking out the best forex trading systems but you get a better idea when you see a variety of these at work in a good forex trading blog. There you see numerous forex trading charts in video formats from various trading platforms.
All you do is compare and contrast with the above points in mind to add to your trading success. I have a few recommendations by the end of this write up. Thanks for your time.