Trading Systems

Do most trading systems work when the market is trending in either direction?
What happens when theres no clear trend, no trading until there is ?

A GOOD sytem should work to some extent in all 3 market patterns. Some people will tell you there is only two markets, a bull and a bear. But sideways is a completly viable market, and one that is often overlooked by most traders.

If your system can’t work both ways its a crap system. You need to find ways to identify trending markets. When markets stay sideways they are typically harder to profit from. So whether its a bunch of MA’s, or watching an ADX, or simply looking at chart patterns, find a way to identify all 3 market trends.

I only trade bull and bear markets. I used to mess around in sideways markets, but with so many viable pairs to trade in Forex why bother? There is always easy money out there on some chart at some time. Why focus on the two or three markets that aren’t trending?

Hi Kagein,

I agree with Daedalus, good tradingsys should be working well when market goes sideways. In trending markets every tradingsys will work and every existing indicator will show you that pair is in trend. But problem comes out when trend has ended, and market goes neither way. I mean everyone can combine one,two,… indicators and set enter&exit rules and called it 100% success tradingsys when there is trend, but nearly all of them will completely collapse when there is not strong trend in the market. And is important to say, that currency pairs are most of the time in side ways than in strong trends. So watch out for scam tradingsys offers on fx market :slight_smile:

Happy trading to all !

HELLO EVERY BODY,
I am a newbie in forex trading,I need a help from kind hearted experienced traders,please give me a trading system that incorporates the followings:
Moving Average Crosses
RSI
Stoschastics- Indicators.
I trade EUR/USD and EUR/JPY.
Thank You All.
Prince.:wink:

Trading systems are just a small part of trading and easy to come by. The main focus of your plan should be on money management. For that is the only truely successful system.

Prince instead of having someone make a system for you just play around and make your own.

1 Like

Hello and welcome!
I agree with bazooka.You will find that advice in about every place you look on this site.A system needs to fit the person.One system may work great for one guy and be a disaster for another.That comes from everyone having different risk tolerance and different styles of trading.If I were you I would just take a long look around this place.If brand new to forex go threw the babypips school,very helpful!Look at the free systems on this site that have been shared from the many good traders that contribute to babypips,and go from there.Take apeice of everything and form your own system,with your style of trading.Good luck and good trading!!

I would suggest you go to the blog section on this site and check out the Cowabunga system. I tihnk it is an excellent trading system for beginners and you can see clearly when the indicators are present. Take a look at the blog then find some good charts and try to find these trends on your own through out the history of the chart.

Good Luck