Mechanized trading systems are those systems that provide trading signals to traders. They give the name 'machinery' because traders trade whatever happens in the market. In theory, a mechanized trading system would eliminate all your biases and emotions in the trade.https://www.myfxbook.com/
There are many 'forex trading systems' on the internet. The advertisement tells you: 'These perfect systems can make thousands of profits every week without losing.' That sounds tempting, doesn't it? You know, these systems are indeed mostly profitable, but the question is whether traders can follow the rules that apply to the systems. Moreover, if you spend thousands of dollars on a system, you might as well take the time to build your own free system and keep your money for trading capital. It is not difficult to create a system, but it is difficult to follow the rules you made when you created the system. We can see many advertisements that sell systems, but there are few that teach you how to build your own systems.
First identify the objectives of the trading system. When you build your system, you need to be clear:
1. Your system should be able to judge the trend as early as possible.
2. Your system should be able to prevent you from two-way loss.
If your trading system achieves these two points, your chances of success will increase. The reason why these goals are difficult to achieve is that they are contradictory.
If you have a system that is characterized by catching trends quickly, you should avoid catching false trends. On the other hand, if your system focuses on avoiding losses, you may be late in trading or miss many trades. In formulating the mechanical system, your task is to find a compromise between the two objectives. Try to identify trends as quickly as possible, while distinguishing between false and true trends.
Nowadays the amount of mechanized trading systems increases pretty fast, so that's why there are trustworthy and reliable systems as well as there are lots of scamming systems which want to steal your data or just money. In my opinion, only professional traders or at least those ones who have solid experience in trading have to pay attention to such systems and choose whether they want to trade with using this system or not. Mainly because it's very easy for a novice to get into hands of a scammer because of lack of experience and knowledge. So, in this case, traders should be pretty attentive.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.