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FOREX TRADING
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Automated Forex Trading And Software - Does It Really Work?
 

Any new trader or one looking to get into forex trading has probably looked for an automated system, or a system that's going to do the thinking for them. It's easy to do a simple search and find countless automated forex systems, however the difficult part is not in finding them but identifying the ones that actually work.

Automated forex systems and software can come in many different forms, some have a set of indicators to follow, others use what's known as an expert advisor that automatically tells one when to trade and some have a simple set of rule and guidelines to follow.

Regardless of what rules, software or indicators of a particular system contains, we want to find one that turns a profit at the end of the day.

Here Are Three Components To Identifying A Profitable Forex System

1. Ask yourself, are there other people using the system and having success? It's easy to visit a website and read testimonials and more importantly, we want to pay attention to video testimonials. There's nothing like seeing and hearing the opinions of real people.

Watch not only the video testimonials, but read all of the text testimonials as well, this will give you a real feel for how the system is performing and what others truly have to say about that particular software or system.

2. Has the system been back tested? Back testing is when we take historical data and roll it forward applying a system to see what type of results would have occurred. Most profitable forex systems have a successful record when properly back tested. Even better, look for videos on the page that show you the system live in action.

3. Does the system apply and use sound money management? This is probably one of the most difficult thing to identify. Though the system may be profitable, what we really want to look at is what our largest drawdown might be in any given month.

A good system could make thousands per month on multiple trades, however this is of no use to us if in one trade it loses everything. Be sure to check for proper money management strategies and make sure they are applied. Even a system that is only right 30% of the time can come out on top so as long as sound money management is used.

Not every forex system will have all three components, but when you can identify one that fit's the shoe, it's more than likely a sound system.

Be sure to educate yourself and use sound money management when trading the forex market as it can be quite risky, however the rewards can also be substantial.

About the Author

Tim Rohrer is an established writer and forex trader. To learn more about profitable forex systems visit
Automated Forex

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