Many traders buy currency trading systems from vendors but its easy enough to build one yourself if you follow simple steps below. The system below is simple, will never go out of data and is robust and will produce big profits.
Let's take a look at how to build currency trading system that can and does produce big gains.
1. Big Profits from the Bigger Moves
Here we are going to look at a trading system that will catch the bigger moves that can last for weeks or months - these are where the big profits are made and there the trends you should focus on.
2. Trade Breakouts
As a methodology trading breakouts is simple and proven, most of the world's successful traders incorporate breakouts in their trading.
It's a fact that most major moves start from new market highs and by buying a high when important resistance is broken means the odds of a continuation and acceleration of the break are high.
If you learn to buy these breakouts then you can make a lot of money.
Most traders hate buying breakouts because they want to buy the dip and wait but of course they don't get in as on the big breakouts prices do not pullback.
Generally, if you trade breakouts be careful to only trade breaks that are considered important by the market and this means - several tests and preferably, these tests should be weeks or months apart.
3. Timing Your Trading Signal
The big breakout trends don't come around very often - but when they do, you need to decide if the breakout is a true or false one.
For this you need to confirm the breakout with some momentum oscillators.
If you don't know what they are now is the time to learn. We like the ADX, RSI and stochastic which are outlined in our other articles.
Just get a couple you like that will help you confirm the breaks - if they are up when the break occurs you go with the break - if there not wait - its as simple as that.
4. Placing Stops & Money Management
At the end of the day session, you simply put your stop below the breakout point.
Many traders make the mistake of moving stops to quickly - make sure you keep yours at entry and don't start to trail it, until the move is well under way.
Many traders make the mistake of trying to restrict risk so much they create it - don't make the same error - give the market room to breathe.
If you try the above, you have a robust currency trading system that's easy to understand and therefore easy to apply and as your trading the big moves, it will only take you 30 minutes a day or less to run.
It may sound simple - but that's the beauty of it.
It's easy to understand, breakout logic never goes out of date and it's easy to apply with discipline, as you can have confidence in it.
Unlike a complicated currency trading system, this one has very few elements to break in the real world of forex trading. Its a known fact that simple systems work better than complicated ones and all thebest trading systems are simple.
I have been using the above system for 25 years and yes it is simple - but over the years it's caught me my fair share of mega trends and has made me a lot of money.
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Finance 
| Posted: 03-12-2007 | Comments: 
