An amateur Forex trader needs to invest not only money but also time and effort to gather the significant knowledge about trading. It is a complicated process that requires skill to succeed and most importantly a free Profitable Forex system to carry out their trading operations. There and several systems available in the market that can be purchased or some that can be bought for free.
Here are some of the free profitable Forex trading systems that can be useful for a trader:
1. Four-Week Rule – Armenian-American Richard Donchian known as the father of trend following developed the Four-Week Rule. This rule is considered to be the simplest technical analysis system of all time. This free profitable Forex system is based on the following rules:
Close short positions and buy a long one whenever the price exceeds the highs of the previous 4 weeks.
Close long positions and buy a short one whenever the price falls below the lows of the previous 4 weeks.
2. 4H Scalping Method – The 4H Scalping Method can be a useful free profitable Forex trading system for amateurs as technical indicators are not required here. It is another simple system where traders can concentrate more on their risk management.
The entry rules of this system are:
Add scalp lines at current swing highs and swing lows.
Include buy stop orders 10 pips above swing highs for long trades.
Add sell stop orders 10 pips below swing lows for short trades.
Preceding and succeeding trends must be of at least 4 candles to initiate swing highs and lows
The exit rule of this system is:
Add a stop loss and a profit target of 50 pips.
Although this system is simple enough for newbies, determining scalp lines or swing highs and lows can be subsequently difficult.
3. Hybrid Scalping System – The Hybrid Scalping System is another free profitable Forex system which is a counterpart of the 4H Scalping Method and is more intense than the latter. Although a scalping system, it can trade in different time frames.
This system is a combination of Trading Made Simple (TMS) system and the Steven Hopwood 10.2 system. It uses the following indicators: TDI, Ichimoku Kinko Hyo, 10.2 TMA Slope True, and Stochastic.
4. The Skyplay System – The Skyplay System is a trading system that uses indicators like MACD, Coral Trend Indicator, 20 EMA, Time Zone indicator, and True Strength Index.
The system involves identifying trends using a 1-hour time frame and zooming in on 5-minutes chart for determining the entry. It also sets a 25-pip stop and a 20-pip profit target for exit rules.
Now that you have read through all the free profitable Forex system, you can easily set up one. However, use caution and consult your broker before beginning to trade. One authentic way to test out the effectiveness of such systems is to work it beforehand. Familiarizing with the system is always a good thing, particularly for new traders. It makes them confident and ready when they are actually using their real money.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.