A forex trading system can be defined as a trading platform which is made up of a market filter for the determination of an appropriate market condition used for trading. It is based on some conditions that include
- Rules and guidelines on how to set up a trading strategy
- An entry signal which is an exceptional signal that helps to determine when a forex trader should enter a position which is either short or long
- A protective stop that helps minimize losses, risks and checkmates ups and downs in the forex market
- A re-entry strategy that helps forex traders to go back to an old position when a new one is not favorable
- An exit strategy which is an adjustable tool used by forex traders in times of crosses and a position sizing algorithm which controls how much a trader can trade and how many stocks to be bought.
CHARACTERISTICS OF NEW FOREX TRADING SYSTEM
NEW TRADING SYSTEMS THAT GO FOR CONSISTENT METHODICAL PROCEEDS WITHOUT HOME RULES
These type of new trading systems are those that work with a range bound forex market. Their sales signals comes up when a particular trade reaches the top of its range or has already began to evacuate from the range. The contrary relates to the buy signal located at the foot of its range. This type of trading system has high regards for support and resistant areas.
NEW TRADING SYSTEMS THAT DRIVES ONLY FOR THE IMMENSE TRADES WITHOUT APPREHENDING IT ALL
These type of trading systems are mostly known as breakout or breakdown forex trading systems. This type of trading system is seen in price breakouts which means either new highs or new lows. They trend following trading system in nature. In this type of trading system, the buy signal does not take place until there is a new high meaning that the trading system will not catch the commencement of the trend.
NEW TRADING SYSTEM THAT DRIVES FOR THE ENTIRE SWING FROM TOP TO BOTTOM AND VISE VERSA
These trading systems are seen as systems that try to call the bottom or topmost of a forex market. Its major feature is that when a price falls rapidly, it creates a specific bounce which gives road to make quick money. These set of new trading systems are known as reversal systems which are counter trends.
HYBRID TRADING SYSTEM
These are known as trading systems were forex traders like big trades without having the money to pay a full price and turns for a bargain scenario. Here, even when a price breakout system which looks like a swing trading system is being used, the traders wait patiently for a redo with high hopes that they will pay less than the actual price.
In conclusion, there are a lot of new trading system that can be used at the forex market therefor, forex traders should trade using a system of their personality in which they can be most comfortable with.
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