Forex Trading Systems

Why trading systems are important?

Many people believe that Forex is a method to be rich overnight, and they can not be more wrong. It is necessary to deeply study the market, understand its rules and complexities, and formulate an action plan to generate profits.

Therefore, one of the most important elements that every Forex trader should have is a trading system. These systems collect the criteria that the market must meet to buy and sell currency pairs.

Next, we will show many free Forex trading systems with proven performance. Keep in mind that there are different trading systems according to the personality of each investor, so it is a good idea to study them all to determine the most appropriate for your case.

What is a trading system

As mentioned earlier, trading systems define the criteria for buying and selling currency pairs. These criteria are defined with a series of tools, such as technical indicators, trading signals, economic news, chart patterns, and Japanese candlestick formations, among others.

Trading systems can be executed manually, or automated by employing a Forex robot. Obviously, with manual systems, you have the advantage of being able to control your transactions at all times, although they can be exhausting. On the other hand, automated systems operate in place of traders and save you time, although they can generate losses because they are not supervised.

Now, we will talk about the most popular Forex trading systems that have proven to be historically effective.

List of Forex Trading Systems

  • The SQN ratio (System Quality Number)
    Introduced by Van Tharp in 2008 in his book The Definitive Guide to Position Sizing, the System Quality Number, abbreviated as SQN, is an indicator designed to evaluate or measure the performance of a trading system or strategy. Subsequently, some … Read more
  • The win rate in Forex
    The win rate is a popular performance indicator used in Forex trading to measure the success of a trading system or strategy. The win rate is the percentage of winning trades compared to the total number of trades executed over … Read more
  • Recovery Factor in Trading
    What is the recovery factor? The recovery factor is an important indicator of the health of a trading system, which is calculated as the ratio of absolute profit to maximum drawdown. The recovery factor is usually measured in points or … Read more
  • Trading System with Three Bars and a Stochastic for S&P 500
    The trading strategy that we are going to present below was initially created to trade the S&P 500 index, but it can also be applied in other markets such as Forex, since it is based on price action and technical … Read more
  • Chande Oscillator and RSI Trading System
    This is a simple trading system that looks for overbought and oversold conditions in the price to enter the market, so it works best in non-trending markets, but still offers the ability to build an equity curve that grows positively … Read more
  • Forex Trading System Scalping Gold
    In this article, we are going to introduce a scalping trading system designed for trading spot Forex and precious metals which can be quite profitable if the trader follows the rules carefully. This system is based on custom technical indicators … Read more
  • Intraday Trading System Using Moving Averages and Stochastic
    This  is quite simple intraday trading system for 15 minutes candlestick charts which is based on exponential moving averages (EMA) and the stochastic oscillator. The rules of this strategy are very simple as we shall see below: This trading system … Read more
  • How to calculate the mathematical expectation of a trading system
    Calculating the mathematical expectation of a trading system is one of the first things that should be done to know if the system is capable of making money in the long term. Having a positive mathematical expectation is an indispensable … Read more
  • How to Measure a Trading System? – Ratios to assess your performance and risk
    When you design a trading system, or you are looking to buy an automatic robot on the market, you must make decisions according to your preferences. The first thing you should ask yourself is: what am I looking for? It … Read more
  • Trading System Based on 4 EMA Crossover
    The trading strategy that we present below is a system based on the crossover of 4 exponential moving averages (EMA) of 5, 10, 20 and 50 periods. In this sense, it is no different from other similar strategies, but includes … Read more
  • Fibonacci Retracement Trading System For Forex
    In this article we are going to explain a trading system based on Fibonacci retracements and the weighted moving average (WMA), which can be used in any market and in most time frames. Therefore, it requires a basic knowledge of … Read more
  • How can I learn to maximize profits and minimize my losses in trading?
    There are certain facts that have remained strong in recent years in connection with trading. Experienced and successful traders point out that, despite being able to develop trading strategies with high probability of success that allow them to enter the … Read more