A while ago I bought a Forex trading system developed by a man who had worked for NASA. He was a genius at programming and developed a Forex Expert Advisor. Let’s look at my experience with it in more detail…
Today, more people than ever look for success via automated Forex trading systems and my experience will give you an idea of how most perform.
The system itself was based on artificial intelligence and adapted itself to changing market conditions, by switching between complex algorithms as market conditions changed. The system on the computer screen looked like mission control Houston, with lots going on all over the screen. I tried the system starting with $25,000 and within two weeks had $7,000 left and quickly stopped trading it.
In hindsight its obvious why this system lost and so do most Forex Expert Advisors and the reason is:
– You cannot beat markets with mathematics because they don’t move to a mathematical formula
– You cannot predict the markets in advance
– Complex Systems break easily, as markets move to the odds not certainties
If you want to win with a Forex trading system, you need to keep it simple and robust and also, make sure you trade the reality of price change and don’t try and predict anything.
To give you an example of how this can leads to success, I will give you a one rule system which beats most of the complicated automated Forex trading systems easily and you don’t even need a computer to run it.
Here is the rule:
Buy a new 4 week high and hold…