For example you should avoid any system that tells you to alter your risk according to whether your previous trade lost or won. This is a plan that some gamblers use to try to hange losing systems into winners, and it never works. They just end up losing big time sooner or later. Your risk should be a constant small percentage of your investment fund size, probably around 2%.

One important factor in the success or failure of a forex trading system is the edge. This is a simple mathematical formula that takes the average size of winning trades multiplied by the probability of a win, minus the average size of losing trades multiplied by the probability of a loss. We could write it like this:

Edge = (average win x probability of win) – (average loss x probability of loss)

Take two very different forex trading systems. One of them wins most trades, say 80%, but only wins a small amount each time, say 40 pips. On the other hand the risk is high so when it loses, it loses a lot – say 100 pips. Some day trading systems are set up this way. Here the edge is (40 x 80%) – (100 x 20%) = 12 pips.

The second system has occasional big wins and a lot of small losses. Here you might have an average gain of 200 pips but only 20% of trades are winners. When you lose, you lose an average of 40 pips. So the edge is (200 x 20%) – (40 x 80%). Again it comes out to 12 pips.

Which is the better system? In terms of return on investment, they are both the same. It is other factors that would lead you to choose one or the other. For example, how many trades can you make per week? If one of those systems gives a lot more trading signals, you will end up making your profit more quickly. Another factor is your own peace of mind. Could you really handle a system that made loss after loss … 80% losing trades? Most traders could not, at least when they are starting out.

Edge is a very important factor and you should try to calculate it for every system that you consider or test. With some systems you will be given enough information to work this out from the description of the system, or they may actually tell you what the edge is. However this is not always the case and anyway you will probably want to check this for yourself by testing, either in a demo account or by back testing. Some testing is required for any forex trading system.

If you want to learn more about one of the most effective forex trading systems on the internet then Click Here

Forex Trading System : Will It Make You Make Money? is a post from: Great Forex World

This FAP Turbo review looks at the expert advisor that burst onto the market late in 2008 and has been taking the forex scene by storm. Is it really as good as the sales page makes out? Here are the good and bad points of FAP Turbo  in our humble opinion.

User Results And Feedback

This is always the most important consideration for any forex robot. The results that the product developers claim on the sales page are amazing of course, but what happens when you get it home? How does it actually perform for people like you?

FAP Turbo does pretty well here. It beats most of the other automated systems on the market. Like all robots it has its bad moments when the market does not behave in the way it is set up to expect, and (again like all robots) some people just have a bad time with it for one reason or another, often because they lose interest while trying to set it up.

Do not expect to double your money in a week. The risk you would have to take to do that would be huge. If you discount complete beginners who were hoping to become rich overnight, the unbiased feedback in the forums is generally positive. Most people are reporting around 10% to 30% profit per month which is a good steady result.

You can choose either scalping/day trading or longer term trading settings. Be prepared for the occasional large loss among many smaller gains and do not let this unsettle you. It is part of the process.

Results from different currency pairs can vary widely. We suggest you start with EUR/CHF.

We spotted some users who were so happy with their results that they have bought up to 5 licenses to use on different accounts!

Level Of Experience

For beginners, there is quite a bit to understand. Do not try to cut corners and rush the setup. The video tutorials are great and if you work your way through all of the points as shown in the videos you should be fine.

Most of the negative feedback comes from beginners who either could not figure out the set up or tried it with real money before they knew what they were doing. So get it running on a demo account to begin, and be prepared to tweak your settings. Patience will be rewarded.

Technical Requirements

FAP Turbo will run on most modern PCs with Windows 2000, XP and Vista. A high speed (broadband) internet connection is essential.

You will need to leave the PC on and connected to the internet any time that you want it to trade for you, unless you have the the software hosted on a remote server. This is offered by the developers as an upgrade and if you want to trade seriously with it, it may be worth taking up when you are ready to trade for real.

Brokers

You will need a broker that will accept robots and the Metatrader 4 platform. FAP Turbo recommend one in the manual but shop around for good spreads. Alpari seems to have high recommendations from FAP Turbo users.

Support And Guarantee

You have the right to claim a refund any time up to 8 weeks from purchase if not satisfied. Note that the software is sold by Clickbank who have a great reputation for their no questions guarantees. The developers’ support is there for technical questions so it is best to seek a solution with them first. Clickbank will refund you, but don’t give up without giving it a fair trial.

Summary: A Top Grade Robot

This is definitely one of the best and most flexible forex robots available to us today. If you understand that the forex market is really about making steady profits, not million dollar trades, you are likely to be very satisfied with FAP Turbo. So the final advice in our FAP Turbo review is to give it a try.

FAP Turbo Review is a post from: Great Forex World

You know the feeling, shall I or shoudn’t I take this trade, should I close it out now or let it ride. We’ve been there a million times ourselves and in our experience we’ve made more money when emotion is out of the equation.

 FAPTurbo Reviewed is a website we’ve discovered that gives a realistic and seemingly impartial review of FAP Turbo

FAPTURBO Forex Trading is a post from: Great Forex World