Technical FX Trading Systems
There are many variations of technical trading systems, many of them very expensive ($3,000+ for a system is not unheard of). Many of the systems are applicable over most of the markets where there is enough liquidity and market participants (for normal price formation). Naturally, major FX currencies fit this description. Technical FX Trading Systems - Ready-Made SystemsMost of the technical FX trading systems are based on technical indicators and the signals these indicators give. The technical indicators these systems might use are, for example:
Before you purchase system using any of the technical indicators or any other method, you should learn about how these indicators and methodologies work. As an exemplary list, some of the makers of ready-made technical FX trading systems include:
You can get a great amount of information about the availability of different technical FX trading systems from Chuck LeBeau's System Traders Club's Forum, under the topic "System Vendors". Technical FX Trading Systems - Make Your Own SystemThere are many books on the subject, such as "Trading Systems and Methods" by Perry Kaufman, and "Technical Analysis of the Futures Markets: A Comprehensive Guide to Trading Methods and Applications" by John Murphy. In addition, technical analysis basics are taught in classroom environment, in online classrooms, in CD-ROM format, in mentoring programs, and in other educational environments. Your system should include, in addition to rules about entry/exit signals, also money management rules, about how much and when to trade and how to limit risk in open positions. If you make your own technical FX trading system, you should test it thoroughly before applying it to the actual markets. Testing can be done with some of the available trading software demos, in MS Excel with historical data, or with a pen and paper (you place trades on paper as you would do on a trading platform). The main idea is not to put any money at risk when testing the system. |