Free Mechanical Forex Trading Systems

By: Kelly Price

In just 15 minutes I am going to show you a mechanical trading system which is free which you will understand and will be able to go away and trade for big profits. So if you want to does this then read this article and I will give you a trading system to lead you to currency trading success...

A Simple Robust System for Big Gains

This system before we look at it is incredibly simple-n but do not think because its simple it wont make money, it can and does.

Don't confuse this forex robot with the junk ones sold online, promising you instant riches and all they give you is a paper simulated track record -, this one has been traded by some of the world's top traders and is proven in the brutal hard world of global FX Trading.

The System Rule

OK its time for the system. It's got just one rule to consider and apply so here it is:

Liquidate any short positions and take a long whenever the price exceeds the highs of the previous 4 calendar weeks and reverse and close out any long positions and go short, when the price falls below the lows of the previous 4 weeks.

This system has a constant position in the market, acting as a stop and reverse system, or SAR.

Advantages of the System

It's simple to understand, as we all know currencies trade longer term and this system will put you on the side of EVERY big trend, as most big trends start and continue from new market highs or lows.

You don't need to be subjective, it's totally objective, so you have disciplined trading system and it tells you exactly what to do and when to do it.

Disadvantages of the System

While it is totally objective, you need discipline to follow it and understand it's not fussy about pinpoint market timing.

This is not a disadvantage as such, because it makes money, no system is perfect and if it makes money well, that's what we all want.

Another disadvantage is you will face drawdown when the system gets chopped and whipped in sideways, non trending markets. Now, the big trends will compensate but it depends on your tolerance to drawdown. If you want to smooth your equity curve, you can take the following and use it as a filter:

When in your positions set a stop at a 1 or 2 week high or low and go flat - then enter the market on the next 4 week trading signal.

The next is a disadvantage that traders see which is not really one - but most traders will think it is.

This system is not trendy or complex.

For some reason traders like glossy packaging, colored graphs and fancy names but in the hard world of trading, where only real dollars count, this makes no odds - its money in the bank which is the only criteria a system is judged on.

Complexity and trading success is a myth. Since trading began, 95% of traders lose 5% win and this is DESPITE all the advances we have seen in forecasting, number crunching spped of data delivery and computer processing, so this all hasn't helped - makes you think doesn't it?

The system was actually devised by one of the legends of trading, considered the grandfather of modern trend following - Richard Donchian. He is acknowledged as a trading legend, so it's been created by someone who knew the game of trading and numerous well known savvy traders have used it and admired it - like Richard Dennis.

Now if it's good enough for them it's good enough for you and me.

The system is brutally simple, works and will continue to work and as a mechanical forex trading its one of the best, as it's so easy to get started with. It won't cost you a dime and makes money, what more could you want?

Test it out and you will see, this simple system can help you in your quest for currency trading success.

Foreign Exchange
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