Trading System Scams

If you have a look for trading systems on the Internet, there are plenty of them for sale

- all promising to make you millions.

When something seems too good to be true, it usually is. Many of the trading systems for sale are unprofitable.

As well as wasting your money, you could lose your trading capital.

Check these points when looking at a trading system to avoid becoming another victim:

Accuracy

Most trading millionaires use systems that are 50-60% accurate. It is virtually impossible in the real world to get 90% accuracy, but that is what some system vendors claim. As soon as you see that, you know that the figure is not realistic, and may be based on a very limited set of test trades.

Real life performance

It is possible to tweak a trading system to get fabulous results on the right set of test data. You simply adjust it to maximise profit. However it is one thing to do that, and another for it to work in real life. Always check to see whether test results are hypothetical, or whether they have been achieved in actual trading.

A good system should have average losses smaller than average profits.

Disclosure of approach

An undisclosed approach is called a "black box" system. You need a lot of faith to use a system that doesn't state how it works. It is preferable to go for a system that provides some information on the approach used

Longevity

A system that has been around for a while, and has been reviewed and checked out by a number of people (who are not selling it) is preferable to the new kid on the block. Many trading systems spring up, and then quietly disappear once word gets around that they don't work.

Exotic or secret technologies

Innovation is a good thing, but beware of a system vendor who states that their system has some new secret trading approach or includes secret, proprietary approaches used by a hedge fund or investment bank, not previously available.

Iif the system cost millions of dollars for a hedge fund to develop and was truly profitable, would it be for sale for $79.95?

Drawdowns

Drawdowns are the maximum negative movement of a trading account. If the system has drawdowns of (say) 30%, you are in for a wild ride, and will need a lot of risk capital. You should be comfortable with the risk factor of the system in real life trading, and this includes the drawdowns.

Practicality

Does the system make hundreds of trades a week, and rely on split second timing? If so, it may not be practical to trade, unless you have some sort of automation to handle the trades. It may not be possible to execute your trades on time if the system relies on very short term movements.

Take care when selecting a trading system - there are a lot of scams out there.

Forex Funnel - Martingale EA

Requirement :

- Minimum equity of 2500$ per 0.01 lot traded so if you wish to trade 0.1 lot then you should have 25000$

- Leverage : 1:200 or higher

Instruction :

- Copy the .ex4 to your Metabroker\Experts folder and the .dll file to your libraries folderThen open your USD/JPY chart , 1H and active the EA , in the setting tick the box say Allow live trading and the "Allow import of external experts" box.

Setting :

- You can change the lot size to 0.01 per $2500 equity.

- The use time function is used if there is a big news announcement i.e non-farm payroll comes out on the first Friday of everymonth.

This will stop the EA from making trades on that certain day so if you want to set it not to trade on that Friday, you would have "usetime" set to true then Sunday, Monday, Tuesday, Wednesday, Thursday, Saturday set to false and Friday set to true.Then once Friday has passed simply turn "usetime" to false again.

Everything else would run on autopilot, please be informed that if trading 0.01 lots make sure your broker support this otherwise the system will not trade.

Good luck !!!

Trading from home FRED Expert advisor

Automatic Trading Expert Advisor F.R.ED full test version

Apply to a EUR USD 30 min chart

Important Instructions:

After you set up, wait for trades to be placed.Depend on current market conditions, you could see trades placed within the hours after you set up the system.

Normally, you should see trades placed between 24-36 hoursFRED will open trade a few times a week when its internal indicator find the proper market conditions to open trades. FRED doesn't have to open many trades or trade every single day.

The goal is to make a profit, not to make many trades. Usually FRED open 2-15 trades a week ! No trades will be performed during the weekend so there is no need to turm off the EA, it will sleep and continue to trade as soon as the market is opened again.Lot size and Risk : For every 0.1

lot size of the EU your account will use approx $70. So I recommend using these lot size setting for different account sizes :

Account balance $500 : 0.1 lot size

$1000 - 5000 : 0.5 - 1 lot size

$5000 - 10000 : 1 - 5lot size

Forex SPOUTNIK system

Finding the Right Forex Currency Trading System

Welcome to this FREE Forex Currency Trading Systems Guide!

When it comes to choosing our Forex currency trading system we want to ask the question of ”how much is it going to cost?”. This is in reference to the cost of getting set up with the right software and information. The cost of getting started can range depending on your trading system set up, but you need to be ready to make an investment of around $300. If you stop to think about it, a few hundred dollars is a tiny investment for something that can very fast be brining you profits in the $50,000 mark or even more.

Forex- Goldminer indicator

Once you set up the goldminer1 & goldminer2 like above on the 1 hour chart or above you are looking for the signals which are as follows :

RED + PURPLE ARROW = SELL

BLUE + YELLOW ARROW = BUY

How you exit will be determined by which timeframe you are using, I suggest using the same TP and SL i.e 30 pips TP 30 pips SL.

Three Simple Rules Of Winning Traders

About two weeks I went on CNBC and predicted that range will rule the currency markets for the foreseeable future. The price of EURUSD at the time of broadcast? 1.2630. The price of EURUSD at close of trade today? 1.2590. So range reigns in the currency market as every rally fails and every decline proves false breaking the hearts of both bulls and bears and that dynamic will probably last for the rest of this year. Thus with little new to say and holiday shortened week ahead of us I thought we'd change the format this week and skips the price action review concentrating instead understanding the basic building blocks of successful trading.

This past week in Kuwait I gave a presentation titled "3 M's that Drive the Currency Market". It showcased a simple analytical framework created by K and I to explain most of the price movement in currencies. The 3 M's stand for Macro - broad economic and political themes, Micro - day to day economic releases and Monetary - for monetary policy of the G-10 nations. The 3M's model, though relatively straightforward, does a very good job of encapsulating virtually all of the catalysts in the FX market.

As I was flying back to US, my thoughts drifted to the 3M idea and I realized that trading itself can also be summarized in a 3 variable model - a model I call the Three Simple Rules Of Winning Traders.

Rule 1 - Develop an opinion.

Whenever I hear traders tell me, "I don't have any opinion, I just trade price action." I always smile ruefully and think to myself that the trader is both an idiot and a liar. The fact of the matter is that every time you enter the market you are implicitly rendering an opinion on the future movement of price. The difference between those traders who do so implicitly versus those who put forth an explicit reason for their trade is that the former have no clue of what they are doing while the later at least try to figure out the story behind the trade.

It goes without saying that I have little respect for traders who mechanically follow price action like mindless robots. In trading you get paid not for what is happening now, but for what will happen in the future and if you cannot figure out what is likely to drive price towards your target you are just a lemming in the market. Right or wrong, developing an opinion is the cornerstone of a winning strategy.

Rule 2 - Let Price Confirm Your Thesis

To politely paraphrase a very crude Wall Street saying, opinions are like faces - everyone has one. Developing an opinion even one that is ultimately correct is utterly worthless if the market happens to disagree with your assessment. The history if trading is littered with brilliant analysts who were absolutely correct on their calls and yet were bankrupted by the vagaries of price action before they were ever proven right. Your opinion may be dead on, but as traders it is price movement, not opinion that we are trading. Until and unless price corroborates your opinion you have no entry signal for your trade.

Rule 3 - Manage Your Trade

More than anything else great traders are good money managers. I've always believed that you can put two great traders on the opposite side of a position and often both of them will wind up making money. On the other hand put two novices in the same spot and they will more than likely both lose. Trading above all the art of managing the unknown. Let's say you own a sandwich shop in some strip mall in Nebraska. Most likely you would know to within 10 or 20 sandwiches how many customers you will have every single day of the year. Now imagine that sandwich shop was the FX market. The day to day variance would drive most sandwich shop owners insane. Some days you may sell 500 sandwiches, other days you may have to dump all your food supplies into the garbage as no business came through your door. That's why trading at its core is always about managing risk. Every time you trade the operating principle is - Hope for the Best Prepare for the Worst.

The only way we've been able to control risk and at the same time participate in the market is by always cutting our position in half once a short profit target is met. No matter what anyone tell you, there is simply no way to know a priori if any given trade will be successful. At BKT we really believe that half a loaf is better than none. Success in trading is contingent not only on your analysis but on your ability to properly manage your position. That is why the game is hard. To be a winning trader you must be both - a good analyst and an an excellent risk manager..