Buy a ready-made Forex trading strategy or create your own

It seems that the easiest option for a beginner is to take some Forex trading strategy, which can be downloaded from the Internet in thousands, and start trading on it. But here one question arises: what can this lead to? What effect can be expected from the first available strategy?

Firstly, - there are practically no real and reliable trading strategies that can bring stable profits for a long time on the Internet, and if there are, their number is very small.

On the Internet, hanging out or any developmentthat have lost their relevance from time to time, but perhaps once they were effective, or simply various trash, which initially could not pass quality control.

Secondly, - a beginner who decides to acquire a strategy does not have enough knowledge to test its performance, relying on certain data, which he practically does not understand. Therefore, you should not even waste time explaining how all this can end. Most likely a complete discharge of the deposit.

Naturally, that advantage Free Forex Trading Strategies That Are Theirs availability and ease of installation. A trader just gets a working algorithm in his hands. He just needs to strictly adhere to this algorithm, but again, everything depends on the inexperience of a beginner, which robs him of this advantage.

But if nevertheless the trader decided to choose for himself already ready-made strategy, he must take precautions before using it. To reduce the risk of draining your deposit, do not immediately run it into work with real money. Before it is recommended to test it on a virtual account at least about 2 months.

During this time, you need to check her work with flat, trend reversal etc. That is, to practically verify the operation of the strategy in all possible situations that arise on the market during its testing.

If the results were satisfactory, you can go to work with real money, preferably on a cent account. Only when the work of the strategy will bring positive results, you can go for a lot of money.

Buying a Forex Strategy

For some reason, many, even traders with experience, believe that acquisition of a ready-made working strategy this is the best way to start a successful and long-term trading on the exchange. But still, you should think carefully before buying it.

Firstly, - the cost of the author’s strategy will naturally be very large. Is it worth spending such funds, or is it better to try to develop something of your own.

Secondly- How can I check the seller from the Internet for honesty?

Thirdly- One must always remember that a strategy bought for big money does not mean that it will actually be effective and will bring big profits. It is known that trash is equally enough among numerous free versions, and among the offered paid programs.

In general, many are sure that really, a reliable and profitable strategy is unlikely that anyone will sell. It is known that its mass distribution will only lead to a loss of its effectiveness. It is also known that the simultaneous use of the same trading system by most traders leads to a change in the market and the usual rules simply stop working.

But if nevertheless, the decision to purchase a trading strategy was made, in which case the trader is obliged to adhere to the following selection rules.

First of all, you need to make sure that the proposed strategy is really copyrighted product, and not some consumer goods, which can always be found in any online store.
First of all, you need to collect as much information as possible about the seller.
Do not buy anything until there is solid evidence of the effectiveness of the proposed strategy. To do this, view the detailed report (statement) the seller’s real account on which the trade was carried out using the sold strategy and a link to several third-party monitoring. A bona fide seller can even provide an investment password to his personal account in which he trades according to the strategy being sold.

Developing your own trading strategy

This path in time will be quite long, but most likely the most effective. To do this, it will be necessary to independently master the basics of technical analysis, study how certain fundamental data influence market behavior and master the theory of Elliott waves. By the way, on our site there is a separate article about Forex training for beginners - we recommend reading it.

After studying the theory of Forex trading, the trader already sees the market in his own way. And after he has gained a certain amount of experience, he can easily determine a high-quality strategy in the pile of informational garbage offered for sale.

If such a trader decides to buy a strategy, he will clearly see what they are offered, and whether it is worth laying out certain amounts for the proposed product.

Creating a new working forex strategy can drag on for many months. To create a working algorithm of the trading system, it will be necessary to study the pattern of movement of pair currencies, compare and analyze the readings of various indicators, make combinations of different types of analysis and constantly look for recurring situations on the price chart.

But the main advantage in independent study of the rules and fundamentals of trading in the foreign exchange market is complete independence from any other tips and ideas that may simply be incompetent.

The disadvantage of creating your own strategy is a big waste of time, forces and finance. Gaining experience and certain skills can cost a trader more than one merged deposit.

Output

At the beginning of your trading path, you can use third-party trading strategies and systems in your work, as experience for independent trading is still not enough, and during practice, knowledge is gained much faster.

However, trading in financial markets,need to constantly evolvebecause any mistake costs money. It is better to make your own transactions, even if they are erroneous, and learn from them, than to trade according to someone else’s system, not understanding what is happening on the market and why to perform certain actions.

Also note that trading success is highly dependent on your chosen forex broker.