Best Currency Trading Systems for Money
If we take a scalping system that makes a mean of twenty pips on a rewarding trade and loses a standard 30 pips on a loss-making trade, with eighty percent of its trades being moneymaking and only 20% losses, this is the edge for this system:
Edge = (80% x 20 pips) – (20% x 30 pips) = 10 pips
That will be a lucrative system and a very good one to use if you had an interest in turning into a scalper. Nevertheless you might find a totally different kind of system that had results that were quite as good. For this system,
Edge = (40% x 40) – (60% x 10) = 10 pips
So these 2 totally different systems have precisely the same results, and the decision on which was the best forex trading system for you would be entirely dependent on your trading style. A good way to test this out would be to operate both systems in a demo account, say for one month each.
This would give you an idea of how successful you’d be operating that system for real. Comparing with back test results for a similar period would stop you from throwing out a system just because it occurred to have a bad month. This could be a handy comparison when selecting the best currency trading system from numerous systems that are profitable in principle.
In: Forex · Tagged with: currency trading, day trading, forex tips, forex trading, learn forex, trading strategy, trading system