Profit Guide to Forex
Forex Profit Systems

What is the best Forex Trading system?

Public Comments

1. You'll spend 3-5 years developing it. The truth is..... only you can make the best system for you.
(If there was any system that worked.... everyone would be using it)

2. I've been trading the Forex for over 10 years, and in all that time I've found very few strategies that are profitable, and personally I could not find any strategy that safety produced an "enormous" amount of money again and again. I did find that the short-term timeframes, such as 1min or 5min, were the worst performers with ANY strategy I tested, because the commission fees from your broker really add up and bite you at those lower time frames.

So to fix this I have to trade at higher time frames, such as the hourly time frame. Then I can aim for 50 to 200 pips profit on profitable trades, and help drown-out those commission fees. But the disadvantage of these higher time frames is, fewer trades, and thus slower money. Rather than the chance to make myself rich really quick, instead, I'd be looking at years and years before even starting to make my first withdraws from my account.

I started with babypips.com years ago, because that's all they had. And after all these years of trading, this is the best results *I* could obtain from the Forex. But now days, there are some new ways to trade the Forex that simply didn't exist 10 years ago. One of those which I highly recommend is the new "signal providers" thing that's been going around. It's kind of the new modern way to trade the Forex, and still provides you with a considerable amount of flexibility and control. Even though I spent over 10 years trying to learn the Forex, I've pretty much completely switched to the use of signal providers, because I've been able to make more money with them than I ever could with my own systems. The reason is pretty simple: when you use signal providers, you are taking advantage of the combined genius of dozens of professional traders, rather than just your own smarts.

It works like this: You go to the website (I'll put the link in my references, at the bottom of this post). And you sign up for a 30-day demo account. You can then browse the list of signal providers (which are actually just Forex strategies, but they call them "signal providers"), and you sort the signal providers by profitability to find the best ones. You can see all sorts of details about them, such as how many pips they've made, and their largest losses, etc. You can also pull up graphs showing the actual LIVE trades made (^NOT^ backtest results, but real trades made without the benefit of hindsight). You can then "Add to Portfolio" to cause your demo account to follow the strategy. Whatever trades they make, you're demo account will make. It's just that simple.

You can follow more than one signal provider / strategy. I'm currently following around 10. I found that following too many is not necessary, but following more than does add an additional layer of safety. If one strategy then goes bad, the others help to make up for it, so my balance continues to go up even if one or several strategies have a "bad season". By following 10, I've never had a whole month of losses. Every month has ended more profitable than the month before. That's defiantly more than I can say for any of my own strategies I used to use!

One thing to really watch out for, though, is martingale and pyramid strategies. Martingale strategies are easy to spot, because they almost always have nasty spikes in their drawdown (which you can see by clicking the "drawdown" tab, when viewing the strategy) OR they have a win percentage higher than 75%. Basically, a martingale adds more and more trades during losing streaks, in the hope that a win will eventually come, and the win will make up for all previous losses because of the larger trade size. It's very dangerous though, because if the win doesn't come soon enough, you'll lose all your money before the win comes. And a pyramid strategy is the opposite, it adds more trades (or a larger lot size) during win streaks, but this tends to be bad also because eventually a losing streak will come, and unfortunately the losses will always have a lot size or trade size that is larger than your wins were, and thus a few losses will take away many wins.

So watch out for martingales, when browsing through the available signal providers. They usually have a 100% win rate (or anything higher than 75%). Avoid them, they will eventually have a nasty loss that will annihilate them and everyone that is following them. Believe it or not, you actually WANT to see the strategy have lots of losses, because this means that they actually accept their losses rather than holding onto them forever like martingales do. So look for strategies that have plenty of small losses, but where overall the balance goes up nice and steadily.

Anyway I hope all this information was helpful to you!

3. There is none... really... just ask those pro out there...

4. The best Forex Trading System is Trader Swiper. I bought it and highly recommend.