In our quest to find the most profitable and at the same time for a "small" trader feasible forex trading system we have tested and analyzed many different forex trading strategies. The strategies that we have tested were ranging from simple combinations of TA indicators to more complex trading systems that were utilizing support/resistance levels, pivot points, chart patterns etc... However in order to reduce the number of systems that were later scrutinized more closely, we have developed our own system selection criteria. Basically the system that we were after had to have following properties: Simplicity, Efficiency and Consistency.
As we all know forex trading strategies are becoming more and more complex and sophisticated. What does it mean for our average independent forex trader? It means that our simplicity factor when developing a trading strategy gains in importance.
What usage could an average person make from a forex strategy that requires or presumes a profound knowledge in mathematics at a PhD level and a computing power beyond that of the newest personal home computer? A type of highly complex strategies commonly used by investment companies are neural networks. A neural network is, in short, a model of interconnected neurons (also known as nodes) that was inspired by the logical neurons in human nerve system. Like the human brain a neural network can acquire, store and utilize experiential knowledge in order to improve its performance day by day. Regrettably, to consistently use a forex strategy based on neural networks one requires the complex knowledge of how to feed a neural network with history data as well as excessively high computing power not affordable to our average forex trader.
Therefore we have set ourselves with a goal of finding a forex strategy that is comparable in its profit potential to the most complex professional trading system and at the same time is feasible and understandable to our average trader.
"If you want to get to the top of the forex market “food chain” you have come to the right place."
Posted by shruthi at 1:28 AM
Labels: forex trading
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