Forex Trading SystemsOne of the trading systems most common and used in the world of Forex trading, perhaps on the intersection of moving averages. Trading systems based on the moving average crosses, have proven to be a simple but effective system that after years still in use within the community of traders and investors.
Who at some point has not tested a system that is based on the crossing of averages of 50 to 200 sessions? Sure that somehow or another many of us are still using them.
This type of system based on the average Forex crosses as we said is quite effective especially if operated in highly trend Forex pairs and no matter we extend the time frame.
How to determine if a trading system based on a crossing of half Forex is good?
matlab modeling, the best way to test whether a system based on a crossing of half Forex is really good, is through the work of different fields:
* Evidence of backtest Forex through tools such as Metatrader.
* Evidence of optimization in Forex via also specialized tools that help us to find the best period in our Forex trading system.
* Do paper trading, or that it is trading on a demo account or simulated Forex trading.
Once obtained the work and conclusions of that period is the best for our cross-half Forex system, what we will do is set it up on our trading platform (either Metatrader 4, Metatrader 5, MultiCharts NinjaTrader etc...) We have a wide range of graphics platforms that allow us to configure and design a system based on the intersection of middle Forex.
We return to insist, that the real work and that will give us success with our system is through hours of testing through simulators based for example on the historical Forex pair for 4 years.
There are companies that can provide historical data of a pair of currencies to "tick" this is that would mean that those historical have great quality to be tested for backtest or simulation.
Returning to our cross-half Forex system, we can try to do the same, the number of periods on the basis of the result of testing different configurations and speeds can be adjusted or even different forex pairs (we know that each pair of Forex is different and behaves in a unique way compared to the rest by very correlado that is). The application of theory to practice. Adjusting the results to our Forex pair and our trading platform.
The trading system based on the crossing of averages if only, does not tell us anything, because there is then to apply the settings to a couple of Forex determined, as for example the EUR/USD (Euro dollar) or GBP/USD (pound, dollar), which obviously will yield different results. A good forex trader, must have some practice in the handling and testing of trading systems configuration, given that many of these systems are not effective with the time to be subjected to constant changes of volatility in the markets.