$ £ ¥
¥ £ $

4 Tips for Trading with a Forex System

Forex systems are essential for emotion-free, unbiased trading. Many traders use gut instinct and are fine trading that way but some traders are much better suited to system trading.

Once you have done all the hard work and developed a robust, profitable system it is time to set it loose on the market. But remember, the hard work does not end there. Once the system is in place, it is important to follow some rules to keep it ticking over. Remember that theory is nothing without practice, so make sure you use a quality trading platform such as MT4 provided by FXTM.

Stick to the System at All Times

The reason why you designed a Forex system in the first place was to be able to take unbiased trades in the market without having to worry too much about whether you are right or wrong. With that said, why do you constantly feel the urge to override the system and take different trades. It is undoubtedly the wrong way to go.

If you have a trading system you have spent time on and feel confident in, the number one rule is to stick to it at all times.

Monitor Your Trades

Just because you should stick to the system at all times does not mean that you should not monitor what it is doing. It is always a good idea to check up on the system to see what trades its taking and to make sure it is working how you thought it would. Sometimes the code you created might not work the same on real markets due to price slippage. Always keep an eye on your trades and make a note so you can make any changes in future designs.

Run the EA at All Times

If you are running an EA (expert advisor) it needs to be run at all times. That means you need a way of keeping MetaTrader and your computer on at all times. Sometimes you will read that EAs will keep running even if you turn off the machine but this is only true for some expert advisors; those that are built into a VPS server. MetaTrader connects to a back end broker seamlessly, but most EAs need to be kept on throughout the trading session.

Re-Evaluate the System

It is a good idea to continuously re-evaluate your system so you should set up a process to be able to do this easily. Get your broker statements sent over by email at the end of each month and then compile the data into a spreadsheet program. Once you have done so, you can start to find correlations between your profitable trades. Are there any patterns that you could take advantage of by fine tuning the system?

If there are, you can set about making changes to your system but, remember you will have to go through the same processes as before to make sure the system is robust. Whenever you make changes to an existing system you should only do so very slowly.

If you want to get news of the most recent updates to our guides or anything else related to Forex trading, you can subscribe to our monthly newsletter.