DELVING DEEPER INTO THE TRADING SYSTEMS

What is a Forex Trading System?

A Forex Trading System is a method of trading forex which is completely based on the analysis and probability tests done to determine whether to purchase or sell a particular currency at that given time, based on the existing market conditions. In short, Forex trading system is a culmination of signals that aid in taking a decision between buying or sell to earn the best and maximum profit. This trading system can be broken down into two different categories: –

• A manual system where one has to manually sit in front of the screens and interpret the outcome or data based on the graphs and curves displayed
• The automated system, where the system software is coded such that it reads the data automatically and displays the interpretation accordingly.

Both of these forms of trading system are kept highly secured by the companies and they determine the trading pattern of the company. The article further discusses the best and free Forex trading systems that are not only easy to use but also very compatible and accurate in interpreting the results accordingly.

Some general pointers to keep in mind

It is a general misconception or myth that Forex is the platform to get richer quickly. Instead, in order to succeed in the forex platform, the trader has to give sufficient input of time, money and dedication towards the market conditions. He or she must learn the use of different systems required to succeed in a Forex platform.

In the current technically advanced world, there are a number of different Forex platforms available, some with incurring of some costs while some in free of cost. The following are the most popular free Forex trading systems: –

• The Skyplay System
• 4H Scalping Method
• Hybrid Scalping System
• Experimental Breakout/Ranging Double system

The choice of the platform is completely up to the discretion of the trader and the requirements that he or she has.

The Skyplay System

In the list of the free Forex trading systems, The Skyplay System comes first. This is a form of the mechanical trading system that has been programmed by using MACD, Coral Indicator, 20 EMA, Time Zone, and True Strength indicators. This platform presents the interpretation of the trend in hourly frames and defines the entry of any new aspect via a 5-minute chart. In addition to the above-mentioned features, it also sets 25-pip stop and 20-pip profit target. Some of the benefits of this platform include the following: –

• A profit of 3.56 % spread across four months that is in line with the good performance
• The average win of 19.73 pips and an average loss of -23.6 pips, thus displaying the better target achieving trait for the company
• A very sleek interface that is beneficial for both the experienced ones as well as the beginners
• Very easy learning platform for the newbies with more options aiming to familiarize them with it

4H Scalping Method

It is the next in the list of the popular free Forex trading systems. It is unique in dealing with currency pairs of GBP/ JPY simultaneously. It shows the interpretation in a 4-hour frame and does not use any indicators to do the same. The use is highly simple i.e. use the swing highs and scalp lines as lows to enter the break either above or below these levels. Both the profit and loss marks are set at 50 pips respectively. Some of the benefits of this form of Forex trading system includes the following: –

• The overall profit margins indicated by the system is about 59.52 % that is a very good performance when compared to the standard marks.
• A positive return of 12 % is also guaranteed and assured with a positive response from the platform.
• A more newbie-friendly and easier to understand platform because of the absence of use of any technical indicators. However, the setting of the scalp lines or swing highs might become too subjective for them and hence they need to be very careful while considering these parameters.
• The results may not be as attractive as of initial, but with deeper analysis, one can see the long-term benefits of these results.

Hybrid Scalping System

It may turn out to be the third in the list of the popular free platforms, but in terms of performance and accuracy, it can be termed as one of the best performing trading systems. It uses Ichimoku Kinkyu Hyo charts that are the prime factors for the accuracy in the predictions made by the platform. Apart from the main indicator of MT4 Trading Platform, it also uses indicators from other Forex Systems like Hopwood 10.2 system and the Trading Made Simple system. Some of the benefits of using this platform are as follows: –

• A very high-profit margin with gain as high as 46.50% in one month itself. Out of the number of trading signals produced in the month, more than 50% turned out to be profitable.
• The average loss is much lesser than the threshold value, hence showing that it actually works for more profit earning.
• A unique strategic platform with a different type of charting system followed. However, one disadvantage is that it isn’t that friendly for the newbies.

Experimental Breakout/Ranging Double System

The fourth in the list, this platform has two different elements of working i.e. bounce trade and breakout trade and uses majorly only one type of indicator i.e. the Envelopes Indicator. Some of the benefits of using this include the following: –

• An impressive profit gain of 18.14% on a monthly basis
• The higher range of win rates than the lost ones
• Very simple to use and good for the novice traders who are new to the market
• Allows purchasing at lower price and selling at higher prices
• Envelope Indicator might not be that popular, but still, in terms of accuracy it is at par with the standard ones and limits the risks to a large extent.