Best Foreign Exchange Trading Systems for Money

It’s going to be no surprise to hear that the best foreign exchange trading systems are the ones which make money! The problem is simply how to identify which ones those are, and particularly, the easiest way to decide which system will work the best for an individual trader, i.e. You.

First let’s disqualify some systems that never make money for anybody, at least not in the long run. These are the kind of systems that gamblers infrequently call loss recovery systems. They involve varying the risk according to whether the last trade won or lost. The concept is that if your last trade lost, then your next is likelier to win, so you take a bigger position. However this idea is totally wrong. Stats disprove it each time. So with that rant out of the way, let’s look at how to identify a profitable system. To do that we will introduce the idea of edge. It is a simple calculation but you do need a reasonable number of results to gauge it from. Back testing is a good method to get those results.