Best Currency Trading Systems for Profit
Author: Triad Trading Formula
It will be no surprise to hear the best foreign exchange trading systems are the ones that make money! The problem is simply how to identify which those are, and in particular, the easiest way to choose which system will be the best for an individual trader, i.e. You. First let’s rule out some systems that never earn cash for any person, at least not in the long run. These are the type of systems that gamblers often call loss recovery systems. The idea is if your last trade lost, then your next is more likely to win, so you take a larger position. However this idea is totally wrong. Statistical data disprove it each time. Gamblers lose their shirts on these systems and it would be mad for a foreign exchange trader to utilize a system like that. So with that rant out of the way, let us take a look at the simple way to identify a lucrative system. To do that we’ll introduce the concept of edge. Edge is the measure of a system’s returns over a period. Edge is just the likelihood of a win multiplied by the average profit on a winning trade, minus the likelihood of a loss multiplied by the average loss on a losing trade.