Trade Forex On Auto Pilot With This Proven Free Forex Trading System

Many forex traders want to trade on auto pilot and simply follow trading signals generated by a system, without having to make subjective judgements. Here we are going to give you one for FREE which is proven in terms of its profit potential.

The system is Richard Donchian's 4 Week rule and has been the basis of many successful trading systems around the world.


Big fans included trading legends such as Richard Dennis, so if its good enough for him its good enough for you!

The system was originally developed in the late 70s to trade commodities but can be used on any trending market and currencies trend well.

Now this system is so simple it consists of just one rule and here it is:

1) Close any short positions and go long whenever the price exceeds the highs of the previous 4 calendar weeks.

2) Close any long positions and go short whenever the price falls below the lows of the previous 4 calendar weeks.

If the system is run with a SAR (stop and reverse), the above system will always maintain a position in the market (either long or short).

Does it work?

Back test and you will see it does.

Of course it works very well in trending markets ensuring you are on the right side of every big move -
but like all trading systems there is a downside:

It will get whipped in a choppy sideways market and here you may wish to consider some filters:

A common solution to this problem is to enter on the 4 week rule (the breakout), and to exit on a shorter time frame such as 1 or 2 weeks.

Traders can also use other exit rules i.e. exit when a moving average is broken. For example, applying a 10-day moving average as the exit - A 10-day moving average is one-half of the entry signal (four weeks is of course 20 trading days) is period we like. You can also experiment with ADX RSI and MACD filters if you wish.

Many traders ignore this system; after all it's not trendy or complex like chaos theory or artificial intelligence based systems, or full of mystical nonsense like Gann, Elliot Wave or Fibonacci - but it works.

Simple systems work better than complicated ones as they have fewer elements to break. If you are interested in making money long term and have a disciplined nature you will like this system.

If you believe complexity will beat the markets, they move to a scientific theory or enjoy the buzz of trading frequently - you won't like it - This system is all about making money long term in a disciplined fashion.

The 4 week rule is simple you can customize it to restrict losses, by adding filter and it will have you on the right side of every major move - do that and you have great profit potential.

So if you want to trade forex on autopilot and make big long term gains, consider this free system and you maybe glad you did.

Understanding The Various Types Of Currency

Having sufficient currency is the only way to survive in this big world. Even the smallest tribes in Africa use some form of money to ensure their survival.

It may not be the usual paper money that we are used to using, but they still use something in order to purchase or trade items. Living in this world depends on having money. Learning all about money can make a person smarter and more knowledgeable about the inner workings of the foreign markets around the world.


One type of currency that is prevalent in more than one country is the euro. The euro is used as the main form of money in over fifteen nations in Europe and became a reality in early 1999. When it took over, it replaced items such as the franc and the deutschmark.

The euro was created for several different reasons and one can learn all about this unique monetary form at "Ec Europa". The part of the website that is dedicated to the euro is very informative.

To find out more about global forms of money, a visit to "Fact Monster" will be informative. This site is mainly intended for children to do research for their classes, but one can learn much information from this site. For example, a person can learn that Poland uses zloty as their main form of money and Russia has the ruble. Also available on this website are links to more detailed information about the countries listed.

Currency fluctuations can affect the foreign markets around the world. However, if one does not understand the various types of money that are in existence around the world, then they can become lost in the world markets.

If one is looking to make money in the markets, then the internet is the place to begin educating one self. By understanding all one can about the world markets, the foreign exchange and how the foreign exchange rate works, then perhaps one can dabble in some currency trading.

Automatic Forex Trading - Use These Simple Tips To Pick The Best Trading Systems

Automatic trading software is seen by many as a great way to trade forex markets. It requires no previous experience, is very time efficient and the good ones can build long term. How do you choose the ones that make money let's find out...

The first point to make is that most of the automatic forex trading software on the net simply won't make you money, if you think you are going to get rich for the price of a night out your mistaken.


Forex trading is not east that's why 95% of traders lose money and while automatic trading software can work you need to be very careful in how you choose one and this is what were going to look at now

First - if you see great advertising copy which looks to good to true it probably is and chances are you will also see the warning below NEVER consider software with this on it here it is:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

These track records are not worth the paper their written on - there made up knowing the closing data and that's easy.

I made the mistake 20 years ago of buying software that claimed 100,000 in profits quickly and bought it for under $100.00 -, now looking back I found the old sales copy (which was great) but also the disclaimer but of course being new to the industry and naïve I bought it without considering that it was so cheap and hadn't been traded.

Huge numbers of traders make this mistake and it is guaranteed to lose you money so beware of the disclaimer.

Just think to yourself - if the vendor hasn't had the courage to trade his own software why should you and why if its that good are you being told about it and offered it so cheap? You know the answer now!

What you need to do is look around for software which has either been independently tracked by third party or has been traded for real with an audited track record and that means broker account statements

These software packages will tend to be in the $1 - 10,000 + range and many are well capable of producing more than there cost - but again be careful, only buy ones you understand the logic of and you have confidence to follow.

If you don't have confidence - you won't have the discipline to stick with them through losing periods and will throw in the towel when you hit a few losses. Keep in mind if you don't have the discipline you may as well not have bothered buying one.

Automatic forex trading systems are all the rage today but stop to think before you buy and do your homework and make sure you find one that's tested, you have confidence in and can follow with discipline - if you do that you have a good chance of making some great forex profits.

Why Is The Canadian Dollar Not Strengthening

I devote a lot of attention to inter-market analysis in the Forex Point and Figure System (FxPnF). In fact, I dedicate an entire chapter in the book to the discipline of inter-market analysis.

Inter-market analysis is essentially looking at one market in an attempt to gain an edge in another market. The forex market is the most applicable market in which to conduct inter-market analysis because of the nature of pairs trading and the nature of fiat currencies.


A classic example of inter-market analysis is to buy the currencies of countries who export crude oil when oil prices rise. According to the Central Intelligence Agency (CIA), the top exporters of crude oil are: Saudi Arabia,
European Union, Russia, Norway, United Arab Emirates, Iran, Canada, Mexico.

The Saudi riyal is a fixed exchanged rate, pegged to the U.S. dollar at 3.75 riyals. The European Union imports much more oil than it exports, so the euro isn't a good currency to trade based on oil prices. The Russian ruble isn't liquid. The Norwegian krone is the purest play on crude oil prices, but the currency isn't available for trading through a lot of forex dealers...yet. Neither the UAE dirham nor the Iranian rial are liquid or available. Among the currencies of the biggest oil exporters, the Canadian dollar is the most liquid. Behind the Norwegian krone and Loonie, the Mexican peso is the third best currency with which to play oil.

One of the best ways to the play the Canadian dollar and it's connection to oil prices is through the USD/CAD. That's because oil is priced in U.S. dollars globally, although there have been some moves to price oil in euros in certain parts of the world. As it stands today, oil is still predominantly priced and traded in dollars. So, when the dollar weakens, oil tends to rise; conversely, a strong dollar generally leads to a drop in oil prices.

The USD/CAD, being the proxy for oil that it is, reached a multi-decade low of near 90 cents last November. The Canadian dollar was soaring as crude oil prices approached $100 per barrel in early November. But something happened late last year to break the inter-market relationship between crude oil and the Canadian dollar.

You see, crude oil is trading well above where it was last November, when the USD/CAD was down near 90 cents. Crude oil has since risen by about $15 per barrel, but the USD/CAD has actually moved higher, meaning the Canadian dollar has weakened.

The Canadian dollar's weakness isn't specific to the USD/CAD pair. You can observe general weakness in the CAD across the EUR/CAD, CAD/CHF, CAD/JPY, AUD/CAD, etc.

Returning to the USD/CAD, the pair has gyrated around par (1.0000) since rebounding from 90 cents late last year. Meanwhile, oil has moved increasingly higher, reaching a new record today! Yet the CAD is not strengthening. Why?

It's more important to consider why the CAD isn't strengthening than to actually answer the question, or to find a justification for the recent breakdown in the inter-market relationship. By simply observing the breakdown in the relationship, we might be able to gain an edge and spot an opportunity in the USD/CAD, or any other CAD-related pair, in the coming weeks and months.

My first inclination is to short the CAD vis-à-vis a long USD/CAD position because the CAD has lagged the most recent rise in crude oil prices. My thinking is that if crude oil at $113 can't strengthen the CAD, what will? But I'd like to see some weakness in crude oil before executing the trade.

Of course the other opportunity that might arise from the recent breakdown in the relationship between crude and the Canadian dollar is a rebound in the CAD. The CAD could play catch-up to crude oil, which would mean a significant decline in the USD/CAD. But I won't get interested in shorting the USD/CAD until it at least breaks down below 99 cents.

Either way, I can afford to be patient and wait for the right signal because when it comes, there should be an easy, long-lasting trend to follow. Whenever I've seen a breakdown in strong inter-market relationships, such as the linkage between the CAD and crude, it's usually a precursor to a big economic or government policy change and, consequently, a big move in the currency.

My hunch is that the CAD is going to weaken, and by a lot, but I'm going to be patient and wait for the signal before placing a trade on just a hunch. The 50 and 100 pip box size charts are good point and figure charts to watch over the coming weeks and months. We should see an obvious signal on one, or both, of these charts.

Forex Currency Trading - How To Make Consistent Profits In 4 Simple Steps

Forex, currency trading whatever you wish to call it is an opportunity to build wealth however, the fact remains 95% of traders lose money. This is not because they can't make money but because they make simple errors. This article is designed to put you on the road to forex profits in 4 simple steps.

Step 1 - It's up to YOU
No one can give you success for no effort so forget all the automatic forex trading systems and forex robots people try and sell you on the net which for a few hundred dollars are going to make you rich - they won't!

Mind you, if you are serious about forex trading you knew the above already so, what you need to do it to this.

Step 2 - Work Smart NOT Hard

Forget about all the mentors or gurus trying to sell you secrets there are none - forex trading is down to learning the right information and getting the right forex education. This should not take long a couple of weeks maximum.

Keep in mind you don't get paid for effort in forex trading, you get paid for being right and that's all.

Many traders make the mistake of thinking the harder they work, the more they make - Not true, that may apply in a 9 - 5 job but not in forex, currency trading.

Once you have learned the right information you then need to have a forex trading strategy you have confidence in and can trade for profit.

Step 3 Your Forex Trading System for Gains
Many novice forex traders think building a forex trading system is hard not so you can build a simple, robust profitable quickly and you need to keep it simple!

Simple strategies work best as they are more robust than complicated ones with fewer elements to break in the brutal real time world of trading.

A good way to start is with a simple breakout system.

This is a timeless way to make money and is easy to understand, implement and will make you money. We don't have time to discuss in full here - but look up breakouts, support and resistance add some momentum indicators and your all set - we have covered building a system in other articles, just look them up.

Keep in mind this once you have your system you have one key element you must pay attention to and that's:

Step 4 - Get the Mindset for Success

While a robust simple trading system will work, you still need to apply it with discipline.

Discipline is the real key to long term gains. If you don't have the discipline to apply your forex trading system, you don't have a system - Period!

If you have built your own forex trading system, you will have confidence in it - this is vital for you to stay with your system through periods of losses ( don't believe anyone who tells you can make a regular income - you will have losing periods that's life) with discipline to achieve long term success.

The Challenge is there are You UP For It?

Forex, currency trading is not hard if you work smart and get a simple robust system you can apply with discipline.

Most traders thing other people can give them success - that's not life your on your own but with the rewards on offer that's the best place to be.

If you have desire, a willingness to work smart and the mental attitude to succeed, you can make big gains at forex, currency trading and enjoy success - its as simple as that.

Learn Forex Trading - These Traders Made Millions After 2 Weeks Training!

If you want to learn forex trading then you should know the story of the turtles who were a group of traders with no experience went on to make $100 million dollars in just 4 years. How did they do it? Read this article and you will find out and it will inspire your forex education.

Legendary trader Richard Dennis set out to prove that anyone could learn forex trading with the right education and mindset - he believed that traders were made not born and set out to prove his point.

He gathered a group of people together who only had one thing in common - they had never traded before. They included a security card, some professional card players, an actor a female auditor and a kid fresh from school just to name a few.

The Results

After 14 days of trading education he set them off to trade and the result was:

They made $100 million for him in just 4 years and went on to make a lot more and become some of the most famous traders of all time.

The Education

So what did Dennis teach them? He taught them a very simple forex trading method which was basically a long term breakout strategy combined with rigorous money management rules to preserve equity.

Dennis knew however that a trading system is not enough to succeed its having the discipline to follow it through long periods that is. He made sure the traders he taught knew how and why the system worked and even when it lost he taught them to stick with it and not deviate from the rules.

Rules are rules and must be followed with discipline - if you don't have the discipline

This took him just 14 days and the rest is history.

What You CAN Learn

There are several lessons that you can learn and the salient ones are outlines below.

1. Everything about forex trading can be learned

If you have the willingness to apply yourself. OK you may not become as successful as this group - but there is a big difference between something being impossible and something being achievable.

2. Simple systems work best!

Today many people think that the more complicated a system is the more likely it is to be successful - but this is simply not true. Simple systems have always worked best and always will, because they are more robust with fewer elements to break.

He also taught rigid money management and made the first priority the protection of capital. If you lose what you have you can't trade anymore.

It's a bit like the old obvious gambling saying - to win you need to bet - but you can't bet, if you don't have any chips! Obvious but true, so you play great defence first and the profits will come, when the right opportunities present themselves.

3. Discipline is the key

You will here it time and time again how discipline is the key to forex trading success and it is - if you don't have the discipline to follow your method you have no method.

Discipline comes from confidence in what you are doing, this is why he taught the turtles how and why the system worked and didn't tell them to follow it blindly.

Trading success comes from within and this means acquiring confidence and discipline.

So if you want to learn forex trading correctly, learn from the turtles:

The potential is huge, you only need a simple system, good money management and most importantly - the confidence and the discipline to apply what you have learned.

The reason most traders never succeed is they never learn the importance of the latter and want to follow others - but you don't get these traits following others, they come from within.

By: kelly Price

Article Directory: http://www.articledashboard.com


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Forex Robots - Learn To Spot Curve Fitted Systems Or Lose

Many forex traders want to use forex robots and make automatic forex profits but if you want to follow a forex trading system then you need to be able to spot curve fitting or you will lose...

So what is curve fitting?


Curve fitting is testing a system over back data and bending the rules of the system to fit the data. This is similar to shooting at a barn door with a blindfold on and then drawing a bulls-eye around everyone afterwards!

Most forex robots you see are curve fitted and a good clue is - if you see the disclaimer below with the track record read it very carefully!

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Check any forex trading system you buy for the above and if you see it the track record is meaningless.

Anyone can make a profit in hindsight and bend the rules to fit the data in a back tested simulation - its easy.

The problem is vendors simply make up track records and curve fit them, knowing they will lose in real time (if they had confidence in them, they would of course trade them themselves and have a real one), these robots rely on clever marketing copy and the fact that most traders simply don't read the small print. These traders are either naïve, greedy or both and pay for it in the market.

If you must want to trade an automated forex trading system, make sure it has a real time track record - but beware - there few and far between and expensive. You don't get good performance for a few hundred dollars.

Even if you do find one, make sure you have confidence in how and why it works so you can follow it with discipline.

A Better Way To Trade?

Another way to trade is to simply make your own forex trading system and this is much easier to do than many traders think. You can soon get a simple robust system together and be making some great FX Profits and we will cover this in the next article in this series.

In conclusion be very careful of forex robots that promise you huge gains with low risk, for a few hundred dollars - they don't work long term, are curve fitted and as you can see from this article, your clue to avoid them is in the disclaimer.

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Automatic Forex Trading Systems - Finding The Best For Profits

Automatic forex day trading systems allow traders to make money by simply following forex trading signals which are generated by the system they are following. It's time efficient and allows you to make money without much effort - but how do you find a good system?

If you want to get rid of 99% of systems advertised on the net which are destined to lose - look for the disclaimer below and pass it by.


Read the disclaimer carefully:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

An automatic forex trading system that carries the above note in relation to performance ( or similar) means it has NEVER been traded for real and simply simulated in hindsight and that of course is easy. We could all be rich beyond our wildest dreams if we had tomorrow's price today, but forex trading is a little bit harder - we need to trade not knowing the future!

The forex trading systems that you see for a few hundred dollars and sold on the net with extraordinary track records always carry the above.

You can find some with real track records and these are the ones you should seek out.

Sure, past performance doesn't guarantee future results but if you are like me at least it shows the vendor has had the confidence to trade it!

If you do find one with a track record of real gains, make sure you are happy with the track record and you understand how and why the system works, so you can follow it with discipline.

A Better Way to Make Forex Profits

There is another route get your own together and trade it - building a forex trading system is not as hard as ,many traders think and we have covered this in our other articles.

You can of course get some free automatic trading systems and one of the best is Richard Donchian's 4 week rule.

This is a simple powerful system devised by the father of modern trend following - Richard Donchian and it's been used as a base by many of the world's top traders and is so simple:

All it postulates is the 4 week cycle can be traded in any currency or commodity.

All you do is buy a 4 week high and go long, or sell a 4 week low and go short - that's it!

Sounds simple - it is and you don't even need a computer package to do it, you can do it by hand. Does it work? Back test it and see.

Simple forex trading systems work as they are more robust than complicated ones with fewer elements to break. The above is simple - but don't think that it doesn't make money, it does.

If you want to follow an automatic forex trading system find one with a real time record but a better way in our view is to build your own or use a free one like the 4 week rule - the 4 week rule has made money and will continue to do so unlike the systems sold with simulated track records and of course it's free - look it up and test it and you maybe surprised at how much money it makes.


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