Trading Psychology: Trust your forex trading system

Do you want to know more about trading psychology and why you should trust your forex trading system? Watch our latest video and get profitable trading results.

Why you should Trust your forex trading system

One of the hardest things for new traders to do is to trust themselves. Beyond that, they find it even more difficult to trust their trading systems. This is normally do to a lack of testing, which is one of the most important things that the professional trader will do. It doesn’t matter if you are trading with a robot algorithmic trading system, or if you are trading based upon written rules, if you do not trust the system, you are bound to change its implementation, and therefore get much different results than expected.

One of the easiest ways to combat this is to test a system over a multitude of conditions, or at the very least a multitude of trades. There are a couple of ways to go about this, but all should involve demo testing. If your system performs well through demo conditions, it should perform the same in the real world. After all, you are using real-world data and pricing.

One of the biggest complaints that you hear is that it takes too much time. This comes down to how you test. You can use FX data and do it manually, or there are ways to run a trading system through the MetaTrader 4 platform based upon historical data. Furthermore, there are third-party programs out there that offer the ability to speed up and slow down data so that you can see how a trade would work out. In other words, if you wish to trade a system in a demo setting for a couple of years, it doesn’t necessarily mean it needs to take a couple of years.

If you have a system that makes more money than it loses, then you have a winner. Obviously, there are ways to optimize systems going forward, but at the end of the day it is doing its most essential job, making money. If you have tested a system thoroughly, you should know that it will make money over the longer-term, regardless of whether it has lost the last couple of trades. There are multitudes of systems that make money over the longer term, that many new traders will ignore as they get spooked from just a couple of losses. If you already have the hard data backing up your choice for the system, all you must do is remember that patience should be profitable.