By: Terry Allen
Once you start trading Forex, you will soon be advised that one of your best routes forward is to develop a Forex trading strategy based on fundamental and technical analysis. On completion, you will then have a means by which you can compare all your future enhancements and optimize your Forex trading performance. However, after a time you will hit anomalies that you will have great difficulty solving using these conventional methods.
One such problem is optimization which will require you to constantly modify your Forex strategy in order to keep pace with Forex‘s ever-changing behavioral patterns. In addition, you may be surprised to discover that most Forex product suppliers do not have a clue about how to solve such problems.
This is probably why most Forex strategies, tools and robots exhibit only brief periods of profitable success before their performances begin to substantially deteriorate. In addition, you may also deduce that strategies such as scalping just provide partial solutions because they can only operate under certain Forex conditions.
To solve problems such as optimization requires that you will have to conduct experiments over considerable time-periods. You will then be able to precisely define Forex’s true nature and produce sensible solutions. However, you have a major obstacle in your path in that most of you trades will probably only last for brief periods before they are closed. They will either hit their profit targets or more likely get stopped-out.
To overcome this problem, I have designed a new and much more flexible concept to help protect my budget that I have dubbed the correlated stop strategy. This tool allows me to operate trades for extensive periods whilst providing full protection for my budget. As a result, solving anomalies such as optimization has now become a reality. In addition, the possibility of developing an automated solution capable of making consistent profits for lengthy periods has also increased.
As such, if you want to attain Forex success, then you must always be on your guard against the current shallow research behind most Forex products. Instead, you must strive to protect your money by seeking evidence of deeper solutions. For example, if you are interested in a Forex product, then you should emphatically demand financial reports confirming that profits were made over extensive time periods, e.g. at least 4 to 6 months. If not provided, then move on as there are plenty more devices on the market.
By: Terry Allen