4 Simple Techniques to Use Free Forex Software To generate Up to 185% Return on Investment

In the last quarter or so I have been developing a number of trading systems that are developed by using a set of simple trading indicators. The good thing of it is that a lot of them are very profitable and easy to implement. Recently I back tested a set of free Forex software tools that have made an overall total of 185% in the last 12 months by trading only 1% per trade.

I actually found this trading strategy when I was testing a number of Forex indicators and trying to find good mixtures of lagging and leading indicators. After testing about a hundred of them I was able to find a collection of indicators that was actually being profitable.Outlined in this article I will be trying to explain to you 4 easy tips on how you can also create powerful trading systems that can be make 180% ROI and much more per year.

Choose a combination of indicators that makes sense:

 When you are looking for new trading systems you need to look for indicators that work well with each other. For illustration, I usually use a mix of lagging and leading indicators.

Why? Because I want to be able to take advantage of the early signals some indicators provide along with the verification signals indicators such as RSI can offer.

Aside from that, I always ensure that the signals I am receiving from my set of indicators are not too weak. The best way to measure the strength of a signal is by forward testing it (with a demo account, never with real money) and evaluate the way they perform.

Combine indicators that can measure the strength of the movements and another one that confirms the market’s intention:

 This is a very important part when you develop a trading system. If you only use indicators that measure the strength of the market it will be challenging to determine when to enter the market. On the other hand, if you only use indicators that help you to determine the market’s intention (for example: the market is about to go in an uptrend or a downtrend.

Backtest the trading system for at least 12 months:

 Backtesting is the only way to confirm that your trading system actually works. Numerous strategy developers and investors commit the big mistake to simply back test a trading strategy for a couple of months or weeks. This is a truly serious mistake because anyone who has been trading for a while knows that every trading system has positive and negative months. In some months I have made as much as 50% ROI, in a bad month I have had a -7% or a -5%. If you only test your system for 2-3 months how do you know that you didn’t just catch the good months with your backtesting. Then, if the system is not as profitable as you thought, you will be confused and disoriented when it starts to lose you money. For this reason I suggest to back test a trading strategy for a minimum of 6 months (if you back test it for 1 full year is even better)

Establish a set of money management and risk management rules for the system:

 Last but not least you need to create a set of money management techniques and strategies to go with your trading strategy. Also, it's exceedingly important that you apply your money management techniques while you are backtesting your free Forex software system.

Stay tuned as I post articles daily and you can always benefit from all the information we are giving out to the Forex community day after day.All the best,

Jay Molina

Pro Forex Trader & Educator