How To Chose A Trading System

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How To Chose A Trading System

How To Chose A Trading System

Systems usually come in the form; peruse the website, part with your cash, receive a manual (usually in pdf form), read the manual, set your charts up, learn the strategy, trade the system, make the same profits advertised on the website, never look back.

Most of these systems are mechanical in use, thus, a certain set of criteria (indicators) have to meet certain conditions before placing a trade. For example, MACD (12,26,9) has to turn up, 10 Day Moving average has to be sloping up and RSI(14) must be less than 70 on a 15 minute chart. Please don't trade this system, its an example. But basically, most systems are rules based (mechanical) and need to be set up and "learnt". To us this involves reading the manual, setting up the charts, observing historic charts (back-testing) and live-running on a small (or demo) account. We will never use a system out of the box based on the claims on the website and we would never advise anyone else to do so.

Occasionally a system will come with an EA, this is short for Expert Advisor. These EA's are usually pre-programmed indicators that are downloaded and applied to Meta Trader charts (they will only work on Meta Trader charts). This is quite a standard charting package offered by many of the Forex brokers out there so is usually not a problem for most. The EA is usually incorporated into a systems rules. E.g. it is basically another indicator that has to be a certain value, shape, etc. in order to place a trade. The advantage of some EA's is that they create an audible alert when a trade is setting up/has set up and thus saves the trader some trouble and hopefully, some screen time.

Most systems we come across are Forex related, this makes sense, as it's the largest (most traded) market and most flexible (its open 24x5 typically). Some systems are designed specifically for indicies, e.g. FTSE, DOW, S&P and occasionally we come across some commodity based systems too. However, it is fair to say that for every system we come across 2 out of 3 will be Forex based.

ABOUT SYSTEMS FOR TRADERS

We are a group of 4 traders with over 50 years trading experience between us. All of us have been full time traders at some time or another, two of us still are, the other two still trade on a part-time basis. We set up and now run this new forum in our spare time with a specific purpose in mind.

Many people find it extremely difficult to find completely independent and honest reviews of trading systems and services. This is because many products do not live up to their expectations (as advertised on their own websites) and many product reviews are carried out by other websites promoting and benefiting from selling that product. Our intention with this site is to facilitate a 100% independent and honest forum for such products.

We use our spare time and our experience to produce initial reviews of as many of these products as we can. Reviews are based on our limited exposure, limited because we just do not have the time to review each product for months upon months and trade them all in parallel. However, this fits with our intentions, which is not to test each product to its extremes but to use our experience to get a general feel for it so as to be able to produce our initial review. To achieve this, for each product, we endeavour to do some form of back-testing/result verification and also run the product in real-time (on a small account) for at least a few weeks. Not ideal, however we believe our experience permits us to produce what we consider a reasonable initial review.

Our intention is not to be Judge and Jury, our limited exposure does not permit this. Following our initial review, the hope is to promote further (hopefully honest) discussion and feedback within the forum from those with more experience of the product, who will add further value. All being well this will result in a forum that the whole trading community can come to rely on and benefit from, not just based our experiences but from the experiences of the collective.

We police (moderate) every single post on the site so all forums will stay on topic. It will not become another clogged up forum for others ego's or for off-topic unrelated discussion.

Regarding affiliations, we are completely open and honest about this too. We do not and will not ever endorse or promote any of the products we review. Nor will we ever accept payment or otherwise for a favourable review. We do however set up affiliations where possible and ask, that, should anyone decide to purchase any of the products we review that they use our links. The commissions we receive from purchasing via our links (where available) will allow us to fund the future purchase of new systems and services to review as well as keep the site free.

We also ask that users return to the forum from time to time and provide their own feedback. It is only through this interaction that the site can be of benefit to all of us.

We welcome you to join us for FREE athttp://www.systemsfortraders.com/

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