How to develop your forex system? This is most probably one of the most important question that any new aspiring forex trader faces. One of the easy method is to instead of developing a new system, just copy a proven and tested system. This can be done. There are many pro traders who are selling their proven and tested systems in the market. You just need to buy a proven and tested system. This is a good way to start. If you are looking for a proven and tested trading system, just make sure that it has got a money back guarantee of at least two months. This way you can test that system and if it is not that good as being claimed you can always go for a refund.
But here on this blog, I will discuss how I was able to develop my own system. Developing a system takes some time but it is well worth the effort. It will take some time to properly test out that system. First what you need to decide is what you need from your system or in other words what are your output requirements. I wanted a system that could make me 50-150 pips daily. I also wanted to make these 50-150 pips with as low risk as possible. I did not want to use a stop loss that was greater than 20 pips per trade. The winrate should be higher than 80%. You can call these the design requirements.
Having the design requirements of your system can help you a lot. Once you are clear what you want you can then focus on the next step which is how to get what you want. I then looked for a strategy that could make me 50-150 pips daily with ease. Once I had that strategy, I then tried to figure out how to reduce the stop loss per trade to between 10-20 pips. Once I had achieved it, I thoroughly tested th seystem on the demo account.
When I found the system to be working well, I opened a micro account with a deposit of $250 and tried to double that amount. This was done with some effort as the the system was generating false signals. I had to figure out how to filter out those false signals. I found a filter that helped me filter out those false signals. I then tested that filter on the live account and found that it worked well and helped a lot in reducing the false signals. In the next post we will discuss step by step how to develop your forex system meanwhile watch this very good training video that reveals the best practices that you need to take into account when developing your forex system.