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How to Select Your Best Forex Trading System

What are the different trading systems?

In the world of retail forex trading, there are countless models for capitalizing on the potential of the currency market and being profitable. These models can be grouped into three main categories which we call systems: Self Trading, Social Trading, and Managed Trading A System is a set of interacting or interdependent components forming an integrated whole[1] or a set of elements (often called 'components' ) and relationships which are different from relationships of the set or its elements to other elements or sets.

The components which make up these three kinds of forex trading systems are the trader, execution method, and the platform/broker that the trader executes trades with. These components work together for the final goal of generating profitable trades and return on investment. Self Trading Self Trading is currently the most common system used in the retail forex industry. The traders are private individuals who open trading accounts with retail forex brokers and execute their own trades with the goal of growing their account. Most self traders execute trades manually while some technologically savvy traders implement (Expert Advisor software) or algorithms for for automated execution.

Pros
• Independence
• Easy barriers to entry
• Zero management fees

Cons
• Limited experience/professionalism
• Time constraints
• Limited broker /platform relationship
• Psychological and emotional constraints

Social Trading

Social trading is growing rapidly in popularity. Social trader enables retail forex clients to copy or automatically replicate other self trader’s execution. Although the “copied” self trader tends to manually execute trades they often implement Expert Advisors. The social trading client’s account will automatically execute trades placed by the “copied” trader’s manual or export advisor.

Pros
• No experience required
• No time constraints
• Low management fees
Cons
• “Copied” trades are generally executed by inexperienced non-professional traders
• Non-regulated/licensed money management
• Exposed to technological issues
• No absolute control over risk management • Limited broker/platform relationship

Managed Trading

Managed trading, or more commonly referred to as managed account, enables retail forex clients to have their accounts effectively traded by regulated asset management teams, programs, or individuals. The more formidable managed trading solutions implement a hybrid between algorithmic trading executing along with manual monitoring and execution. Being that managed forex accounts is the most sophisticated forex trading system, some companies focus all of their resources on this prime service. This enables clients to have a fluid and simple investor experience while the complexities of the industry are dealt with by the firm. Client’s funds are generally placed in a trading account with retail forex brokers or even prime forex brokers. Using MAM or PAM terminal technology, a master account is used for the asset management team to execute trades while the exact proportional trades are executed in the client’s personal account. Clients must check that the account managers they are signing with have the license to partake in this form of discretionary trading.

Pros
• No experience required
• No time constraints
• Managed by professional, experienced, and regulated entity • Access to prime or institutional forex brokers
• Ability to monitor and select risk level
• Maximum drawdown mechanisms
Cons
• Higher barriers to entry (deposit size)
• Higher management and performance fees
• Requirement of Limited Power of Attorney for nominated account manager

Two questions to ask when selecting your Forex Trading System The following two questions will help dictate which trading system will suit you best. After answering the questions, you can follow the table/matrix underneath to determine your best match.

How much time and effort do I have to acquire experience and trade professionally? Anyone who tells you trading financial assets profitably is easy, either does not have your interest in mind or does not understand the market. Therefore, to effectively trade and manage risk appropriately you would either need to have the previous experience and current professionalism. Acquiring knowledge and experience requires hours upon hours of practice, knowledge and live trading experience. Professional execution and risk management also requires several hours per day analyzing the market and monitoring trades. Your level of time/experience/professionalism will therefore dictate which strategy of trading you will implement (intraday, swing, long-term) and if you will trade the account or a third party.

What are my investment goals?

The first element of defining your investment goals is the amount of funds you are capable and willing to allocate to forex trading. The second element which will dictate the optimal trading system are you target for speed or level of returns. The higher the speed and target returns, the more risk you are willing to incur.

 Wrapping Things Up

Currencies, CFD, and commodity markets, or better known as Forex, has become a staple for any investment portfolio. Finding the right system to invest profitably and safely in the market is crucial. Asking yourself what your investment goals are and how much personal effort your are able and willing to allocate will determine if you are looking for another hobby, a quick gamble, to test new products, amplify your savings, or earn a steady second income. Once you answer those questions, you will be on the right track to being a savvy investor.

 

Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."



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Amazing Trader EVENT RISK Calendar:


Mon 20 Nov
14:00 EZ- Draghi Speech
15:00 US- Leading Indicators
Tue 21 Nov
15:00 US- Existing Homes Sales
23:00 US- Yellen Speech
Wed 22 Nov
13:30 US- Weekly Jobless
13:30 US- Durable Goods
15:00 US- final University of Michigan Survey
15:30 US- EIA Crude
19:00 US- FOMC Minutes
Thu 23 Nov
US/JP- Holiday
All Day flash PMIs
13:30 CA- Retail Sales
Fri 24 Nov
All Day flash PMIs
09:00 DE- IFO Survey
US- Early Closes

Forex Trading Outlook


Potential Trading Opportunities


  • POTENTIAL PRICE RISK: HIGH Mon -- 14:00 GMT EZ- Draghi speaks in Brussels. Looking for any policy hints or bias


  • POTENTIAL PRICE RISK: HIGH Tue -- 13:30 GMT US- Existing Homes Sales. Top Housing Statistic

  • POTENTIAL PRICE RISK: HIGH Tue -- 23:30 GMT US- Yellen Speech. Early evening. Looking for anything on policy


  • POTENTIAL PRICE RISK: Medium Wed -- 13:30 GMT US- Weekly Jobless, Durable Goods
  • POTENTIAL PRICE RISK: Medium Wed -- 15:00 GMT US- final University of Michigan Survey
  • POTENTIAL PRICE RISK: Medium Wed -- 15:30 GMT US- EIA Crude
  • POTENTIAL PRICE RISK: HIGH Wed -- 19:00 GMT US- FOMC Policy Minutes. Key policy release


John M. Bland, MBA
co-founding Partner, Global-View.com

EXCLUSIVE: Global-View Daily Trading Chart Points Updated

EXCLUSIVE: Global-View Free Forex Database updated




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Forex Forum

The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.

Forex News

The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.

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Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.

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The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.

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Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.

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Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.

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Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.

 

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