Author: Kelly PriceMost novice Forex traders want to make money using mechanical Forex trading systems but most lose money, as most systems lose. This article is all about finding the right system and trading it for long term currency trading success.
Here are your 3 steps to Forex trading success with a mechanical trading system.
1. Get Verified Evidence of Performance
Any system that terms itself a Forex robot or Expert Advisor will lose you money. They have catchy names, cost a hundred bucks or so and tell you, they can double your money each month with no drawdown and no effort. These systems lose money and never have an independent track record of gains to back up their ridiculous claims of profit. All you get are simulations and unverified figures.
Look for a system which has an independent and verified track record of gains over at least 2 years. So what realistically can you expect from the best systems? This leads us onto the next point.
2. Performance to Drawdown
The best systems will give you 50 - 100% annual gains compounded and these are the best. These gains are great but you will get drawdown and the bigger the long term gain, the bigger the short term drawdown will tend to be.
You should expect a 20 - 50% drawdown at some point and it will probably last for a few weeks. Short term drawdown happens to all trading systems, even the best - so you need to be able to be confident in your system and trade it with discipline through these periods. We will discuss how to trade with discipline in the next point.
3. Confidence in the Logic to Trade with Discipline
You need to be confident in the logic of the system to stick with it when it has a losing period so learn how and why the system works and make sure you agree with the logic. If you don't have confidence in the system to win long term, you will struggle to trade it with discipline in the short term. Keep in mind, if you can't trade a trading system with discipline, you don't have one!
If you follow the above simple steps, you will be on the road to making Mechanical Forex Trading Profits and 30 minutes a day or less.
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