You can of course buy one of the heavily advertised automated forex trading systems online - but this one is simple to understand, free and made savvy traders millions and all you need to know about it is enclosed...
Let's start with the ones you can buy and most have nothing to offer apart from fancy packaging and hyped copy, to appeal to greed.
They lack the basic requirement you need and that's having made a profit. Check the track records and there normally just paper simulations done backwards!
Well that's not real dollars and if you want a robot you want one that's Made real dollars and the free one we are going to look at has.
Real Profits for Over 20 Years
The system has been used since the late seventies by serious traders and was devised by Richard Donchian who is considered the grandfather of trend following.
He left some great free info for traders to use and his 4 Week Rule automated trading system, is simple - but don't believe it doesn't make profits it has and still does. Let's take a look at it.
The Rule
This is a one rule trading system which holds a position in the market at all times and this is the rule to execute your trading signals to.
Buy a new 4 week calendar high and reverse this position to a short position on a new 4 week calendar low - that's the rule and it's very simple!
Now you may be saying that's too simple to work but all the best forex trading systems are simple but it works on logic which is valid and here it is.
Trade Breakouts
Almost all the big trends start or continue from new market highs or lows and by getting in on them, you are getting in on the big trends.
Currencies Trend Long Term
They reflect the underlying health of the country they represent so this means long trends of months or years and this system will get you a good chunk of the profits they produce.
You then have a couple of other very important advantages:
- Its objective you don't have to think about the signal you just do it
- Its extremely time efficient and only takes about 15 minutes a day
So is the system perfect?
Of course not all systems have a weakness and this one is no exception.
When currencies don't trend, it will generate losing signals but you can add a filter and exit on a one or two week high or low, go flat and wait for the next signal or you can use a short term moving average. This smoothes the equity curve but whichever way you choose long term this system makes profits.
The best forex trading systems are simple and this one is and don't believe the vendors who try and sell you software with fancy names, clever packaging and a made up track record, go for the real deal and that's a system, that's still used after 25 years and is at the heart of many a successful forex trading strategy.
You don't get much for free in life but Richard Donchian has left something for free, that is valuable, easy to understand and can help any trader seek currency trading success in just 15 minutes a day.
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