Mechanical Forex Trading Systems - A FREE One That's Made Massive Profits!
Written by OnlineLoan on 17:13Mechanical Forex Trading Systems - A FREE One That's Made Massive Profits!
By: Kelly Price
Of course, you can buy one of the numerous mechanical trading systems advertised by vendors (all with simulated track records) or you can use this one - that's FREE and made users millions. How it works is outlined in this article and it's a great way to make forex profits.
This system is simple so simple in fact that you will have no problem understanding how and why it works - don't confuse the fact that it's simple with its profit making ability. Some of the world's top traders have used it and made a killing.
The system was developed back in the seventies, to trade commodity markets by a trading legend - Richard Donchian, who is considered the father of modern trend following.
It was originally devised to take advantage of the four week cycle in commodity markets that also exists in currency markets.
It's called the four week rule and here is the rule:
Liquidate short positions and open long position when a price exceeds the highs of the previous 4 calendar weeks. Liquidate long positions and open short position when a price falls below the lows of the previous 4 calendar weeks.
How simple is that?
VERY - but back test it and you will see it works well on trending markets and currencies trend well. Its problem emerges when markets don't trend, so add this filter:
Eenter positions on the 4 week rule and exit the position on a shorter time frame. Time frames that are frequently used are 1 or 2 weeks. You then simply re enter on the 4 week rule.
That's it!
It works try it - but most forex traders won't use it - Why?
Because it's to Simple
Traders dismiss it straight away - but trading legends such as Richard Dennis have used it so you should consider it - if it's good enough for one of the greatest traders of all time - then its good enough for you.
It's not trendy
Today we have neural networks, Fibonacci systems, artificial intelligence and there more trendy and buzzy than this simple system. Traders like to think they can beat the markets, with trendy systems - but they can't.
It's Not Fussy about Market Timing
True - it doesn't buy market tops or bottoms and most traders are obsessed with prediction and of course prediction doesn't work - it's another word for hoping or guessing. This forex mechanical trading system works on the reality of price change and trades the truth - most traders hate doing this, despite the fact it's the only way to make money.
It's Takes Discipline to Follow
Most traders lack discipline and when a forex trading system is so mechanical and so un fussy about timing they can't do it and throw in the towel.
This mechanical forex trading system works and is based on breakout methodology which is a proven way to make money - if you use it, you will find that you have a free system that will beat 99% of the junk systems sold on the net, with worthless simulated back tested track records.
If you use this forex mechanical trading system you will get a head start on your way to long term profits.
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