Guide to Forex Trading Systems

By: Kelly Price

You will see numerous forex trading systems on the net and they all promise you big gains but the reality is very few of them deliver forex profits - so how do you pick a good one? You check one key point which is enclosed.

The first and most important point you need to do when choosing any forex trading system is look at the disclaimer that it carries. If the trading system carries the one below or a similar one, you need to be very careful - let's look at it:

"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".

If a forex trading system carries this disclaimer it doesn't in anyway indicate the profitability of the trading system and the reason is obvious - because if you put the above disclaimer on you can simply simulate anything you like in hindsight and of course vendors do.

Now the naÃ?ve or greedy forex trader simply swallows the story, buys it and then wonders why it loses!

If a vendor promotes and an automatic buy and sell trading system and hasn't had the confidence to trade why should you?

Avoid simulations and ask for a track record of real gains over 2 - 3 years with supporting broker statements

I recently saw a vendor who prints his bank statements as evidence of the profitability of his system but the money is from selling systems!

Don't be sucked in by greed check the system out and make sure its been traded for real - sure it doesn't guarantee profits but at least it shows what the system is capable of and that the vendor has had the confidence, in his own ability to trade it.

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