Forex System - Practice Makes it Perfect

By Albert Schmidt

Most traders are looking for a perfect trading system. What I realized from my experience it is a trader himself who makes the system perfect. You see many people once they get a few losing trades start looking for another system. So they do not even give a chance to any trading system to show the result in a long run. I was one of such traders until I realize that practice on price historical data and practice on a demo account in real time can make a system a perfect one.

Why most trading systems work even if they have losing trades?

Any trading system will have losing trades. It's a numbers game. There is no Holy Grail that will give you only wining trades. The Holy Grail is in the mindset. So how do you acquire such mindset? I think only by practicing your trading system. If your system has a positive mathematical expectation it will eventually give you a steady gain of you capital in a long run. What most people don't realize is that once they switch the system or modify it they break the mathematical expectation. It becomes negative. No wonder it loses money.

What steps you need to take to make sure a system will make profit?

The first step is to test it. Test, test and test again. Do back testing on a large volume of historical data. Then forward test it on a demo account. By testing you are not only making sure your system has a positive edge. You are becoming an expert with your trading system. After such experience you will be able to identify trading opportunities presented by your system very easily. This ability alone will increase your profitability in trading.

So what is the perfect system?

You see the perfect system is not the one that gives 50% of return of your capital in a single trade. The perfect system for you will be the one that consistently increasing your account. Even if it's 1% a month if you are patient enough then the power of compounding will kick in and soon you will be able to take large profits of your trading.

Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trades.