Best trading systems on FF for newbies?

Hi,

I know how hard it is for new traders to find a good system so here is a thread to help out.

The 1st nomination is: FARTIST for the following reasons:

1.great thread on trend trading
2. no ridulous claims
3. appears honest & trustworthy
4. easy system to learn
5. good content on trading psychology etc


2nd nomination is: 60minuteman

Take a look at 60's thread, nice and simple system to trade from well respected member

http://www.forexfactory.com/60minuteman

Please post any trading strategies you know are good system from helpful posters.

MT

i think there is no system dude, there is method, learn from different people and get what it serves you, throw the useless

test in demo first, or live acc but with minimum size

Hi, DP

Thanks for your post and I agree. However, new traders need to start somewhere.

MT

Your trading system in general is the way you trade, the combination of analyses that you use, MM (money management), RR (risk reward, win/loss ratio), and the time horizon of your positions. You can find many tips on how to build a profitable trading system on the Internet. The truth is that this can only be done through practice and trading on a demo and live account. After setting firm rules for your money management, then you can define RR parameters, and type of analyses. It is best to start using a combination of technical and fundamental analyses. For the novice trader it will be easier to use the news in the trading platform calnedar to determine the market senitment. In due course, you will find out what time horizon you like the most. With practice, acquiring new knowledge and experience, you will gradually find your own style. Only then you will have your own trading system ready.
Trading systems can often be copied. You may also encounter many ads for sale of different strategies. The fact that a certain system is working for someone else, does not mean it will bring profits to you as well. The reasons for this are mostly psychological. When you have not created your own system, it will be hard to go through the series of possible losses (as it is with any system), and to keep faith in it. You will most likely give it up right before things turn in your favor. If it is not your own system this can bring you sleepless nights or will cause you boredom and dissatisfaction. Here comes the question If someone has a winning system why would they offer it to someone else for free or a small amount of money that they would normally earn for a day or two by trading with it?.
I think the novice trader should start from the support and resistance levels.
Levels of support and resistance are essential elements of technical analysis, as one could easily build a winning strategy based on them. When price is trading over a certain level, it is support. Accordingly, when it is below the price level, it is resistance. Levels of support and resistance can be represented by a line or area/zone. They may be horizontal or inclined. Bottoms, tops and intermediate levels of consolidation could be drawn on charts. The exact placement of these levels is often subjective. The price may fall below the support a time or two. This indicates that there are enough traders who are willing to buy the currency at or around that price to keep it from falling further.
A breakout of а support zone leads to a downtrend. The resistance line represents a price level that the currency cannot seem to push past and break higher. However, if this level is broken that would lead to an uptrend and new highs. It should be emphasized that support and resistance lines are guides, not absolute boundaries.
Major round numbers could also act as support and resistance e.g. 1.2000, 1.2500, 1.3, 0.8500, 1.5000, 1.6000, etc. Usually after a break of support or resistance the price again returns to the relevant level. This is called a breakthrough test. These levels are always good for a position entry. Often, if you establish a level and indicate it on the chart, (we need at least two points for this purpose) this level may prove as future support or resistance. Normally, when it is reached buyers and sellers become more active. Price often remains locked between two levels by finding support in one and resistance in the other one. When they are horizontal, they form a range, when levels are inclined а trend. When you identify a range formation, you can open a short position at the upper end and long at the lower one. Respectively, the stop should be above resistance and below support levels. Target of the short position can be put within the range immediately above the support area. The target of the short position could be placed within the range limit, right below the resistance level.
А trend is a price channel. When the channel is inclined downward the trend is bearish. When the channel is inclined upward the trend is bullish. Trend and range could be traded similarly, with the difference that the bullish trend gives signals for long positions while the bearish for short. In а trend, we can try to catch a larger movement by putting wider targets, or you may not use any and wait for a trend reversal signal. Most of the technical analysis figures could be drawn by using support and resistance lines triangles, pennants, flags, double tops and bottoms, diamonds, rectangles and others.

I agree no one system will be the end-all-be-all thing to use.

My advice is to start with one reputable book/course/forum thread, learn the basics from it quickly, then put it into practice as soon as possible. And by that I don't mean load $50.000 to your account and just start trading. Start with a demo account. Put your new knowledge to good use. Learn from your mistakes. You learn far more from your mistakes than from your successes.

Doing so, you'll create your own system! Now when your system is clearly defined with clear rules, you can go through new books/courses/forum threads and incorporate some new ideas into your system. Slowly, you'll create your very own trading machine.

Only after you prove you're profitable on your demo account for a couple of months straight should you start trading real money.

In any case, here are my favorite resources (without links for now, don't have time):
Price Action

1. Beggs, Lance - YTC Price Action Trader
2. Brooks, Al - Price Action Trading Course [27 hours]
3. Volman, Bob - Understanding Price Action
4. Pring, Martin - Pring on Price Patterns

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Supply and Demand

1. Seiden, Sam - FXStreet Webinars
2. Supply and demand in a nutshell by Alfonso Moreno

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Other (advanced)

1. Anton Kreil - Professional Trading Masterclass
2. Anton Kreil - Professional Forex Trading Masterclass

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And of course ForexFactory Members

1. james16
2. the_wizard
3. ghous
4. raczekfx
5. clockwork71
6. Strat
7. Darkstar
8. mbqb11

Hi, Zig

Great info-sticking with one system is one of the biggest issues for new traders.
Another trader who has simple and easy to undertsnad strategies is Steven Primo. He has a number of free vids on youtube explaining the strategies, no need to buy anything.

MT

This I would call a prerequisite of any working trading system.
Heap of indicators combined together is not likely to bring any consistency in your profits.

new recommendation in 1st post

Time frame: Any.
Currency: Any.
Indicators: 5 EMA, 10 EMA, Stochastic (14, 3, 3), RSI (14, 70, 30)

Buy rules: Buy when 5 EMA crosses above 10 EMA and Stochastic lines are heading north (up) and Stochastic is not in overbought position (above 80.00 level) and RSI is above 50.

Sell rules: Sell when 5 EMA crosses below 10 EMA and Stochastic lines are heading south (down) and Stochastic is not in oversold position (below 20.00 level), and RSI is below 50. Exit rules: when 5 EMA and 10 EMA cross in the opposite direction or if RSI crosses the 50 mark again

Hi, Takanakhana

Thank you for you contribution, simple system suitable for new traders to demo.

MT

It's a simplified version of the BabyPips' "Cowabunga system" with a couple of the parameters changed very slightly.

Call me churlish, but personally, I think systems like this are really counterproductive and overall actually quite damaging to the long-term prospects of new traders, for (at least) three primary reasons ...

(i) They have an air of "ostensible authority", in other words they tend to be presented in ways that "look authoritative" and carry an imprimatur of professionalism which actually they completely lack: for reasons which beginning traders can't appreciate, but are all too apparent to those making a living by trading, they have absolutely no "edge" or "net positive expectation" at all (as can easily be demonstrated simply by rigorous backtesting);

(ii) They focus the attention of inexperienced traders on "indicators" rather than on price action, thus appealing to those (perhaps understandably) "looking for shortcuts", who imagine that what they need to do to make money is simply to "copy something that 'works'." This is actually completely fallacious: systems don't "work" - traders "work", by acquiring education, learning what really moves prices (it isn't "indicators" at all: on the contrary, "indicators" are themselves moved by prices). They therefore waste people's time and impede their education, when they should first be learning about the basics of probability and statistics as applied to trading, learning why expectancy matters, how to manage risk and capital, the significance of position-sizing, and so on;

(iii) People who gain their experience by playing with systems like this are the ones whose "10,000 hours' experience" (if they ever get that far) ends up becoming more or less the same 100 hours' experience repeated 100 times over, rather than actually progressing and developing/increasing insight through affording genuine experience of the markets: these systems, from which nobody can ever make a living, are effectively "blinkering" to people. And then those same people wonder why the failure-rate among aspiring retail traders is fairly universally said to be about 95%.

To be avoided.

Just my perspective.

love the part 3 ... Soo true.. lol

Hi mytrader;

If I could give myself advice, going back five years to when I first started to study Trading, I would tell myself to avoid systems all together.

Stay way from indicators, which I have done mostly.

I would tell myself to think in terms of Forex being a Zero Sum Market and really understanding what that means. For every Buyer there has to be a Seller and visa versa. So think when you Buy who are you Buying from is it some else who is just as convinced it's going down, are you Buying as someone is getting their Sell Stop hit, are you Buying late as another Buyer Liquidates (Sell).

Think, what does Big Money have to do to get their orders filled?

They need Liquidity without it their Orders would crash through the Order Book getting filled at worse and worse Prices.

They are going to be looking for the obvious Stop placements and then run those Stops because they provide the Liquidity for them to Trade against.

Look for consolidation this is Big Money accumulating Orders once their Orders are filled, and there is no one else to take the other side of their Trade, the market moves in their intended direction.

This isn't Rookie Talk, I know, but the sooner you start to think in these terms the better off you and your Trading will be.

Spending your time exploring this further will help greatly with your advancement in Trading rather than looking for an easy system to follow.