Are you in the market for the best Forex systems? Then, you should read on before shelling out hard earned cash for a trading system that might have caught your interest. Most, if not all of the Forex trading systems being sold online make ostentatious claims of profitability and stupendous success rates, which blows the minds of even the hard core and seasoned Forex traders. You must treat each one of these trading system being offered to you with a grain of salt. More importantly, you should thoroughly evaluate each before deciding to buy one.
Remember, all of these Forex trading systems have been in the market for quite sometime now and all of them claim to be the best. If their claims of profitability and accuracy are what they say they are, their sales should have skyrocketed by now and their system should have spread like wild fire in the industry. But, look at the statistics. Based on the required quarterly account profitability disclosures made by all U.S. based Forex brokers and done in October, 2010, only one broker achieved a 50% account profitability rating while the rest managed to achieve no more than a mere 25% rating. This means 7.5 out of every 10 of their clients loses money while only 2.5 out of every 10 are able to generate real profits.
Profitability is the ultimate gauge to determine the best Forex systems. Tested against historical market records with the objective of simulating trades as dictated by the system's generated trading signals, the best trading system must be able to show a success rate percentage of 85% or higher over time. The trading system must also be able to achieve a consistent average return on investment of at least 75%. Its ratio of winning trades versus losing trades must be 8:1 or better. The drawdown or the average loss percentage per single losing trade must not exceed 15% of utilized capital.
These should serve as the basic standards against which the effectiveness and profitability of any Forex trading system are to be evaluated! We know for a fact that a successful trading record based on past trades is not, and can not guarantee that future trade results will give the same yield. Therefore, every Forex trading system must be tested in real time using demo accounts with real time quotes. The real time trading results must be consistent with if not better than the trading results of the simulated trades. The stop loss strategy of the trading system must also be thoroughly scrutinized to make sure you have the maximum loss protection at all times and that the maximum drawdown per trade is never exceeded. You should show some concern and reservation if the results show inconsistencies.
Make sure, too, that the best Forex systems you are considering to buy has a money back guarantee and offers a free trial period. This way, you should be able test the system for free and return it under no obligation should it turn out to be a fluke.
Remember, all of these Forex trading systems have been in the market for quite sometime now and all of them claim to be the best. If their claims of profitability and accuracy are what they say they are, their sales should have skyrocketed by now and their system should have spread like wild fire in the industry. But, look at the statistics. Based on the required quarterly account profitability disclosures made by all U.S. based Forex brokers and done in October, 2010, only one broker achieved a 50% account profitability rating while the rest managed to achieve no more than a mere 25% rating. This means 7.5 out of every 10 of their clients loses money while only 2.5 out of every 10 are able to generate real profits.
Profitability is the ultimate gauge to determine the best Forex systems. Tested against historical market records with the objective of simulating trades as dictated by the system's generated trading signals, the best trading system must be able to show a success rate percentage of 85% or higher over time. The trading system must also be able to achieve a consistent average return on investment of at least 75%. Its ratio of winning trades versus losing trades must be 8:1 or better. The drawdown or the average loss percentage per single losing trade must not exceed 15% of utilized capital.
These should serve as the basic standards against which the effectiveness and profitability of any Forex trading system are to be evaluated! We know for a fact that a successful trading record based on past trades is not, and can not guarantee that future trade results will give the same yield. Therefore, every Forex trading system must be tested in real time using demo accounts with real time quotes. The real time trading results must be consistent with if not better than the trading results of the simulated trades. The stop loss strategy of the trading system must also be thoroughly scrutinized to make sure you have the maximum loss protection at all times and that the maximum drawdown per trade is never exceeded. You should show some concern and reservation if the results show inconsistencies.
Make sure, too, that the best Forex systems you are considering to buy has a money back guarantee and offers a free trial period. This way, you should be able test the system for free and return it under no obligation should it turn out to be a fluke.
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