Now it’s time to teach you how to add some meat to your thin trading plan by showing you how to create a forex trading system.
More specifically, we’re gonna teach you all about forex mechanical trading systems.
Mechanical Trading Systems
Mechanical trading systems are systems that generate trade signals for a trader to take.
They are called mechanical because a trader will take the trade regardless of what is happening in the markets.
In theory, this should eliminate all biases and emotions in your trading, because you are supposed to follow the rules of your system NO MATTER WHAT.
If you do a simple search in Google for “forex trading systems” you’ll find many many many people out there who claim to have the “Holy Grail” system that you can purchase for “only” a few thousand dollars.
These systems supposedly make thousands of pips a week and never lose.
They will show you the supposed “results” of their perfect systems and it will make your eyeballs turn into dollar signs as you sit there and say to yourself, “Wow I can make all this money if I just give this guy $3,000.
Besides, if his system makes thousands of pips a week, I’ll be able to make my money back in no time.”
Slowww down cowboy. There are some things you should know before you give them your credit card number and make that impulse buy.
Do They Work?
The truth is that many of these systems DO in fact work.
The problem is that forex traders lack the discipline to follow the rules that go along with the system.
The second truth (Is there such thing as a second truth?) is that instead of paying thousands of dollars on a system, you can actually spend your time developing your own mechanical trading system for free, and use that money you were going to spend as capital for your forex trading account.
The third truth is that creating mechanical trading systems isn’t that difficult.
What is difficult is following the rules that you set when you do develop your system.
There are many articles that sell systems, but we haven’t seen any that teach you how to create your own system.
This lesson will guide you through the steps you need to take to develop a forex mechanical trading system that is right for you.
