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

  • Standard division indicator
    Mean Reversion Trading Strategies
    Mean Reversion Strategies aim to generate profit when prices return to the mean after deviating from it. A typical example is buying when a stock’s price drops significantly, anticipating a price recovery. What is a Mean Reversion Trading Strategy? Mean … Read more
  • Example of a Buy Trade Generated with the Trading System on an H4 Chart of the EUR/USD Pair
    Trading System with the Awesome, Stochastic, and EMA indicators
    Next, we will present a simple technical analysis trading system based on signals from three well-known technical indicators: the stochastic oscillator, the Awesome oscillator, and the exponential moving average (EMA). As such, it is a technical system with clear rules … Read more
  • Algorithmic Forex Trading: What it is and How it Works?
    Algorithmic trading is a form of trading in which you use an algorithm, based on a set of predefined parameters, to open or close positions on your behalf. Algorithmic trading aims to eliminate the human factor (psychotrading) and instead follows … Read more
  • The SQN ratio of a trading system
    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
  • 15 minutes intraday trading system
    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
  • Example of equity drawdown
    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