Forex Trading System - How to Build Your Own in Simple Steps

Many people think that to build a Forex trading system is hard and buy a junk forex robot instead and lose. If you want to win you can build a system easily and it will give you a major advantage in your pursuit of currency trading success...

If you take the time to build your own currency trading system, you will have confidence it, because you will understand it and that makes it easier to follow with discipline. It's easy to build a system so let's look at how to do it.

The first point to keep in mind is that any Forex trading system should be simple and only have a few rules that trigger your buy and sell signals. Simple systems work best, because they are more robust than complicated ones, with fewer elements to break.

You need to incorporate the following elements in your system.

- A logical Methodology

- Levels of support and resistance

- Timing and confirmation indicators

- Stop loss placement

Let's put a simple system together which works and catch all the big moves and profits. For a methodology to use, the simplest and most profitable one is a breakout methodology. All you do is buy breakouts to new highs and lows. Breakout methodology is covered in our other articles or in numerous sites online, so if you are unfamiliar breakout trading Look them up.

To spot breakouts, all you need to do is look at support and resistance on a bar chart and look for a new high or low to be made. When you see a breakout, you want to trade, ensure that price momentum is accelerating through the breakout point to get the odds in your favour. For this you need to use some momentum indicators, to confirm price velocity is accelerating.

There are numerous indicators to choose from but only pick one or two, we like the stochastic and RSI, so look them up, there easy to learn and will give you at a glance, if momentum is accelerating in your favour on the breakout you are looking to trade. Once you have bought or sold the breakout, your stop goes behind the break.

The strategy above is simple and it works and in the next article in this series, we will show you how to select the best breakouts to trade. Building your own system is easy and one based upon the logic above, can lead you to currency trading success.

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