What is the best Forex trading system? Well there are many contenders and here we will look at one that you should consider because not only does it make big gains its totally free as well. Everything about it is enclosed so let’s look at it.
The Forex trading system we are going to look at here is a one rule system called the 4 Week Rule. Savvy traders have used it since the late seventies to make money – it worked then and it still works today. Let’s look at the rule and then why it works.
The rule is simple – Buy a 4 Week high and then wait for a 4 week low to be hit and then liquidate the long position and go short. All you then do is – keep reversing on each new 4 week high and low and keep an open position in the market at all times.
Now this system is so simple you don’t even need Forex software to do the calculation, you can do it in your head.
Sure it’s simple but all the best Forex trading systems are and if you test it works. The system is also based on assumptions about market behaviour that will never change.
The first assumption made is that markets will always trend for long periods and these trends can last for many months or even years; it also assumes that all big trends will emerge and continue from breakouts to new highs and lows.
If you look at any Forex chart you will see this true and that’s why the system works and will keep working. It’s a simple, long term, breakout trading system and this method of trading will always work. The system was thought up by Richard Donchian who is one of the great traders and many pro traders have used it since and still use it.
The system can be hard to follow because it is so long term but if you persevere with it and follow it in a disciplined fashion, it will get you in on all the best trends and give you some great profits.
Today most traders like to buy Forex robots or Expert Advisors which all fail in real time trading to make money and they ignore the 4 Week Rule, despite the fact it beats all these robot systems and makes money; so why is it not used more?
Traders believe the advertising hype of the trendy systems regarding how they predict market turning points in advance and make big gains with no drawdown (which of course is not true) and are simply naïve or greedy. No serious trader would use these systems but lots use the 4 Week Rule and the reason is it makes money long term and if you want to use it, you can make some great profits too.
It’s free and it works and that’s a great combination and that’s why we view it as one of the best Forex trading systems. Take a look at it and see the profit potential for yourself.