Yes you did read the above title correctly, in this article you will find a Forex trading signal which was devised by trading legend and has been making great long term gains since the late seventies and still does today – Let’s take a look at it in more detail.
Most Forex trading signal services sold online, fail to make money and normally rely on presenting track records that are simulations going backwards knowing all the closing prices! You never get an independent track record of verified gains and the logic is never easy to understand or is not explained at all. Let’s look at our free trading signal and the logic behind it, first lets look at the rule to generate the trade and it’s an easy one, here it is:
Buy a break to a new 4 week high in any currency pair and hold your position, until a new 4 week short is hit and then, simply reverse it to a short. After that, this acts as a simple Stop and Reverse System (SAR) and you simply change direction as each new 4 week high or low is hit.
You might be thinking that’s so easy, it can’t make money but if you do try it, you will see how Profitable it is. The signal actually comes from one of the great traders, Richard Donchian and he originally devised it, to trade futures markets but it works great on currency markets too. It’s simple but all the best trading signals are and the logic of why it works is easy to understand as well and based on two recurring facts:
Forex pairs trade for weeks or months on end and every single big trend, will start out by breaking to new highs or lows and continue it’s trend by doing so. You therefore have a system which will get you a good portion of EVERY big currency trend.
The above system will make money long term and its been doing so for nearly 30 years but will most traders use it? The answer is no they won’t and the reasons why are below.
Most traders think they can trade with little or no drawdown (they believe the simulated track records produced by vendors of systems that are sold) but any experienced trader knows – you have to ride out drawdown to win longer term. If you don’t like taking short term losses don’t trade Forex – You need to focus on the long term.
In addition, most traders will think its to simplistic to make money and they can do better with, all the laughable predictive systems sold but they don’t win, you can’t predict Forex prices and all these systems get turned to dust by the market.
This free trading signal, doesn’t have any hype or a fancy name and a simulated track record but does it make money? Yes it does, The 4 Week Rule is one of the simplest and best, trading systems you can get for making long term Forex profits so take a look at it for yourself and see.
By: Samuel Leslie Berkovits
About the Author:
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