For beginners in trading, it is advisable to purchase a robust trading system. An example of a freely available and robust trading system is One Night Stand.
Robust Trading System
I know it is not sexy or “exciting” to trade One Night Stand, with trades being held overnight and over the weekend. With a sufficiently large position size, the One Night Stand trader will probably have sleepless nights on Friday, Saturday and Sundays.
However, that is the edge of the system. Being in trades where very few traders are in, with most of the traders on the sidelines. If you have heard that “95% of the traders lost money, only 5% of the traders are profitable“, you will know why now. That is because 5% of the traders took trades that the rest of the traders dared not take.
Personal Trading System Design
After you have traded a professional robust trading system for a while and seen how it works, it is a good time to design your personal trading system.
Start with a Trading System Idea
You can get many trading system ideas from the internet. Following is a listing that I have used:
Forex Factory [ www.forexfactory.com – Forums – Trading Systems ] has many threads on the various trading systems that the members have created and are using. Some members will even provide the indicators to trade the systems free.
Babypips [www.babypips.com – Forums – “Holy Grails” ] has a thread on Free Forex Trading Systems.
Collective2 [ www.collective2.com – Find a System ] is not a forum. It is a collection of systems that are available for subscription. To see the system idea, click on any system and scroll down all the way for System Description.
An example of a system description in collective2: “XXX system trader typically enters trades in the morning (between 8 and 9 AM) through around noon (all times U.S. Eastern). It primarily trades the @EC (Euro FX) contract but may trade @CL (Crude Oil) if the market conditions are deemed favorable. All trades will be closed before the end of the regular market hours. ”
Continuous Trading System Development
In terms of the 3 sites, I have no preference for any of them. For the past couple of years, I have found and traded one or two trading ideas from Forex Factory. This year, I have found one trading idea from Babypips and the trading idea is still in development. I just started visiting Collective2. It does looks like a good place to find new trading ideas.
A final note, no trading system is holy grail, and you do need to understand the market forces that moves the futures prices.