Automatic forex trading systems can be the road to ruin and it is for most traders but you can win with them and make profits you simply need to know what to look for in deciding the system that’s right for you…

First avoid any system that carries this disclaimer.

“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading.

Also this will be stated

“Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.

So the track record is not a track record of gains at all it’s a paper simulation and you should avoid these

You want something that is proven to work in real time so seek out a forex trading system which has been proven and this means the following:

1. Audited track record at least two years long

2. Logic is fully disclosed and not black box

You need a real track record to show logic is soundly based and this really needs to be over a few years. Many systems present a track record over a couple of months – this proves nothing. Its long term you want and a variety of market conditions.

Forget about the idea of practicing in a demo account unless you want to do it for a few years it’s a waste of time. Look at the logic and track record check the vendor’s background and see if it makes sense to you. You also need to know the logic it’s based on so you can have the confidence and discipline to follow it through losing periods.

Not being able to ride out a drawdown period , is a common problem for traders they quit early when they could have won don’t make the same mistake expect drawdown as part of normal forex trading.

Many traders think it’s hard but you can build your own system and it’s a lot simpler than you may think. Furthermore there is an excellent free system we have written on the 4 Week Rule and we have used this since the eighties with success and great news is its free!

So if you want to win, make sure you avoid the simulated track records and get a real one that’s proven. You can also use the free one we have given you or build your own. Then understand any automatic forex trading system you use needs to executed with discipline, which comes from confidence and knowledge, on how and why it works.

So there you have it, your forex trading system can be a road to riches or ruin. If you want the route to profits and currency trading success, note the tips in this article.

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This entry was posted on Sunday, October 28th, 2007 at 10:26 am and is filed under Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.