is a set of instructions prescribing the opening and closing trading positions based on the results of technical analysis.
Trading forex system to get rid of the chaos in the shopping process. Follow the system allows to eliminate emotion from the trade. Therefore, anything that requires a system, it is necessary to carry out faithfully, even if it will not be disclosed to a potentially profitable position.
To begin with the establishment of a forex trading system needs to determine at what time periods you can work, that is working to identify taymfreymy. Large restriction that imposes a deposit and start the principles of money management. Long time periods are less «Financial noise» in comparison with less. These periods of technical analysis more accurate and gives fewer false signals. They are preferred for successful work, but require a larger starting deposit. At the lower stages of more noise and, therefore, a technical analysis of the less accurate and gives more false alarms.
The most important task of trading system is the definition of the point of exit. Any system must provide not only the signal to the opening position, but the anticipated levels of profitability. Order Take Profit should be available close to this level. It is also necessary to determine the extent of the limitation of losses if the market starts to develop in the opposite direction. At this level, it is necessary to place an order Stop Loss. In other words trading system must accurately determine what level to keep an open position for maximum profits and reduce losses in the mechanisms of adverse market development.
Professional experience in the foreign exchange market and communicate with traders shows that all successful traders earn only because of its mechanical trading systems, to develop and debug, which they take years. Many professionals have a 100% mechanical system. Automated trading system generates trading signals or when the self-described events, a trader can only serve for the signals in time trading systems or to monitor the work of an expert.
The real trade practice has shown that discipline in the performance of trading systems allow signals to a successful trade, and reduce the risk to a minimum. And, conversely, the influence of «human factor», a subjective approach in assessing the market, the influence of emotions, often leads to disastrous results. In addition, physical capacity rights are limited, and even with 100% mechanical approach will never be able to fully realize the full potential of the trading system, if no shift of responsibility for managing the account on the "shoulders" automatic trading system
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