Of course you can buy a currency trading robot from a vendor but the one enclosed wont cost you a cent and will beat 95% of those sold - lets take a look at it.
Before we take a look at our free one, it lets see why most paid for ones fail to deliver and why you’re better off not paying for one.
Generally, they have never been traded and come with a simulated track record, using past data. This is the disclaimer you will normally see:
“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, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. 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”.
What generally happens is a system doesn’t make money on first attempt, so the vendor adds more rules in and bends the system to fit the data. No two pieces of data replicate themselves exactly again and the system ends up wiping out the user.
This is known as curve fitting and most sold systems do it.
Now let’s look at our free one.
Its one rule that’s it so you can’t bend one rule by its very nature!
A Simple System for Profits
Now let’s look at the system. It’s called the 4 Week Rule and was devised in the late seventies by trading legend Richard Donchian.
Originally it was devised to work on commodities but works on any trending market and currencies trend well.
Here is the rule:
Cover short positions and enter longs when a price exceeds the highs of the previous 4 calendar weeks. Close long positions and go short when a price falls below the lows of the previous 4 calendar weeks.
That’s it!
Very simple - but it makes money and many of the world top traders have used this system and still use it today. Simple systems work best as they are more robust in the face of ever changing brutal market conditions.
The system works great in any trending market and will put you on the side of every major trend of course when the market is not trending it can suffer drawdown and here you may wish to alter the exit rule.
Rather than exiting on 4 weeks you can try 1 or 2 weeks then go long or short on the next 4 week trading signal.
This system is a long term trend following breakout based system and unless markets were to stop trending long term it will continue to work.
Its free so don’t discount it, trading legends such as Richard Dennis were fans of it and if its good enough for him then it really is good enough for you - it works.
It’s a simple highly effective logically based system that anyone can understand and use and you should consider it. Try this currency trading system in a demo account and follow it rigidly to prove the profitability to yourself and make it part of your forex trading strategy for success.
NEW! FREE FOREX BREAKOUT TRADING SYSTEM PDF
For free 2 x trading Pdf’s, with 50 of essential info and more on the 4 Week Rule and Currency Trading Robots visit our website at: http://www.learncurrencytradingonline.com
This entry was posted on Saturday, November 1st, 2008 at 5:34 pm 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.