Forex Trading System

Forex technical analysis is actually an art not a science. No indicator or combination of indicators works all the time and this is why users of Expert Advisors (EA) and robots usually lose. If their EA or robots are always right, they can be riches people easily. So what should a good technical analysis be?

Here are some general points to keep in mind when you are building trading system.

You need to combine indicators, the rules for using them, so you have confidence in what you’re doing.

Do not build day trading or scalping methods, these systems may be easy to bulid but day trading and scalping are made to failure, as all short term volatility is random. Search swing trading and long term trend where you can get the odds on your side and win.

Your trading system should cover odds based theories like breakouts and contrary trading and don’t bulid system based on science. Trading is not a science.

Your trading system should cover money management and equity preservation. Trading system is not only giving you entry rules only; you also need to know how to protect your money with stops and when to move stops to lock in profit.