FOREX trading systems are big business now as the internet allows anyone to use one and make big profits.

The question traders need answered is - what do they look for when they buy a trading system to locate the good systems from the losing majority.

Right, let’s get started and look at getting trading systems with the potential to make huge gains.

Many traders choose to buy a FOREX trading system ready made and ready to go. Just plug it in and huge profits come quickly. Well that’s the theory, the reality is different. There are good trading systems out there but you need to pick wisely, here are some tips.

Don’t buy a system that promises 80% accuracy and has little or no drawdown.

We all know this is not true, as we all know drawdown is part of trading a system. These systems always come with hypothetical track records and of course, we can all trade with low drawdown when we know what happened in the past.

Look for a system where the rules are revealed

You need to understand the logic before trading.

This is essential as if you don’t understand the logic you won’t have the confidence to trade it with discipline. Avoid black box systems only trade a FOREX system you understand.

Look for simple trading systems.

They should only contain a few rules or parameters.

It’s a fact that simple systems work best and not ones that are complicated. All the worlds top trading systems are simple!

Look for trading systems that trade ALL markets with the same rules.

One of the biggest errors traders make is falling for systems that have “unique” rules to trade different markets.

What this basically means is that the vendor cannot get the system to work on the market, so its “curve fitted” i.e. the rules fit the data in hindsight.

Never consider a system that does this!

Look for long term trading system

There is a huge market selling short term and day trading systems, but fact is they don’t work as well as long term trend following FOREX trading systems.