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Every trading system is a complex object with a lot of rules. All Forex systems should consist of the entry and exit rules, define the market (instrument) they are designed for and state some position sizing (money management) strategy. Most traders I know give the highest priority to the entry rules of the system, pay …

Following up on my blog posts about the importance of keeping a trade journal in Forex trading. I’ve decided the ask my readers if they use this great tool for improving the overall Forex system and money management in particular. You can find my previous posts with a good example of trade journal (in Excel format) …

I’ve already written about the trade journal and its application in Forex trading a year ago. Since then I’ve been using the journal extensively myself and I saw many disadvantages in it that could be fixed. I won’t be going far into saying how important it is to have …

The latest broker on my site today is Forex Systems. It’s a U.S. Forex broker, registered with NFA and is currently only doing business as an IB (though, with a lower minimum entry conditions) through another broker — FX Solutions. Forex Systems is a rather strange name for a broker …

One of the most obvious and easy ways to improve your trading results and organize the whole Forex trading process is to use a trade journal to log every trade that you make. It’s an almost unknown fact among Forex beginners, but even some experienced traders still trade without such journal. …

After saying so much about the statistical Forex systems, I think it’s time to give an example of one. But first, I have to warn that this exert advisor «as is» wasn’t profitable during tests — it had its losses and gains, but spread losses took over eventually, so I can’t suggest using it on your real …

The final part of my introduction into statistical Forex system development is dedicated to the complexity of the resulting expert advisor (or automated program if you want to create such strategy for anything else than MetaTrader platform).

When traders think …

After statistical Forex systems were introduced in my blog, I’ve described the problems of timeframe selection and statistics gathering. Now it’s time to discuss the decision making problem of such trading systems.

When a completed strategy has enough statistical information and a sample from the current market …

Earlier I’ve described the statistical Forex systems and introduced the problem of choosing the right timeframe to gather the statistics for such systems. Today I will try to describe the problem of choosing the right information that is collected for the statistical trading system.

Gathering the statistics …

In one of the previous posts I’ve introduced the statistical Forex system definition and marked up the important problems that should be solved in the process of its creation. Here I will try to explain more about the problem of the statistics gathering.

Choosing the timeframe for the statistics…