CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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How to Create Your Own Forex Trading System



You can’t trade forex without a strategy; having a strategy is going to be your bread and butter when it comes to finding success. Creating an effective forex trading system isn’t always the easiest of tasks, as it requires plenty of thought and foresight. Looking at what it takes to both establish and maintain a consistent forex trading system, the following information is going to be key.


When embracing forex trading, before you do anything, you are going to need to determine what type of trader you are. Do you enjoy swing trading, or is day trading more your speed? Are you interested in breaking down charts and data, or do you tend to go with the flow? How long do you tend to hold on to positions? How active do you see yourself being? Answering these questions will help you determine a trading time frame that will make up the basis of your forex trading system.


Information is going to fly at you from all directions when you trade forex, but not all advice is good advice, especially when it comes to executing trades. As your forex trading system begins to take shape, it’s important that you filter out the advice that is actually going to be detrimental to your output. Think about it this way: You should always evaluate where such advice is coming from, as commentary from an experienced person is clearly going to be worth more than throwaway forum posts.


When establishing a forex trading system, the temptation is to go 100 miles per hour. This is an urge you must resist, as simplicity is often going to be key when it comes to establishing a forex trading system that works. While you can freely add to a forex trading system over time (often when you become more experienced), the core nature of it should be flexible, easy to understand, and adaptable enough that it can be moulded to various market scenarios.

Long-Term Goals

Plenty of traders can earn more from short-term market fluctuations, but when starting out and creating a strategy. It is what takes place over a longer time that should take precedence. Short-term data can come with plenty of hype and noise in tow, but it can also cloud the judgement of a novice trader and can’t always be relied upon to determine accurate market predictions. Remember: The task of actually establishing a successful forex trading system is deep-rooted in understanding what’s both realistic and obtainable.

Fundamental Analysis

Technical analysis is largely self-explanatory in execution, as it’s solely based on breaking down the internal forex market factors (such as the number of active buyers and sellers) to determine the likely market direction. However, you simply can’t base a forex trading system on these factors; as crazy as it sounds, you need to look beyond the numbers.

The forex market is strongly influenced by what occurs in the real world, as everything from growth figures to interest rate changes can impact currency performance. When formulating a forex strategy, you should carry out extensive fundamental market analysis, understanding what’s ahead when it comes to forex as a result. Doing this really will allow you to put your best foot forward and set yourself up to take advantage of whatever shape the forex market takes.


It was mentioned above, but it certainly bears repeating. No trader can monitor the market manually 24/7, so in your absence and in the interest of risk management, you should set stops on your open positions or think about using a forex VPS (which doesn’t force you to have your PC on 24 hours a day). A stop order will automatically commit you to sell when a currency reaches a certain level, in your absence or otherwise. Limiting losses and locking in profits, correctly used stops can plug any holes within your forex trading system and act as an additional level of protection.


The image of forex trading has certainly changed a lot over the years, as the advent of web trading has brought it closer to the masses. For that reason, it really is no surprise to see so many people dabble in forex trading as a means of investing. If you want to establish a firm footing within the world of forex and ensure that you quickly establish a profit—as you can gather from above—you have come to the right place. Helping you to establish and maintain a profitable forex portfolio, through the help of Valutrades and the points made above, you will be able to create your own fully-functional forex trading system. In addition, all Valutrades clients receive access to Tradeworks.oi, a tool to help automate your forex trading so you can achieve better returns.

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The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

This post was written by Graeme Watkins

CEO Valutrades Limited, Graeme Watkins is an FX and CFD market veteran with more than 10 years experience. Key roles include management, senior systems and controls, sales, project management and operations. Graeme has help significant roles for both brokerages and technology platforms.