A forex day trading system is one of the most popular trading systems and is designed to open and close forex trading positions within the same trading day (before 5PM NEW YORK time). These systems are looking for 12-90 pips gain with a stop loss in between 15-50 pips.
When day trading forex, it is recommend to trade only during the EURO and US sessions because they are the most volatile and best day trading setups are typically found during these sessions.
FX day trading systems use intraday charts with short - to medium length timeframes such as a 5, 15, 30 and 1 hour charts.
Do forex day trading systems work?
As mentioned in another article, some will work while others not. Our advice is to test them before making huge deposits into your trading account.
Forex day trading system benefits
No overnight positions.
More trades a day.
Choose your own trading hours (EURO session, US session or both).
The ability to make forex trading your dayjob.
I'm ready to buy a day trading system, what now?
Take a forex demo account and start trading the system. Make sure you are disciplined enough to follow the trading rules as explained in their trading manual. If in doubt, contact the vendor and ask for more explanation about the system.
Things to keep an eye on.
What stop loss and profit target levels does the system use?
What currency pairs are recommended to trade?
What's the preferred timeframe(s)?
What is the percent of winning forex trades?
Is money management build into the system?
Does it use trailing stops to lock in profits?
Forex day trading system example
The above picture displays a blackbox system to daytrade currencies. The green arrows indicate a buy signal while the red arrows signal a sell.
As you can see, this system is pretty accurate during the 17th of April - 24th of April.
Compare trading systems here... |
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